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John Kartch

Full List of Obamacare Tax Hikes: Listed by Size of Tax Hike


Posted by John Kartch on Friday, June 29th, 2012, 3:43 PM PERMALINK


WASHINGTON, DC -- Obamacare contains 20 new or higher taxes on American families and small businesses. Arranged by their respective sizes according to CBO scores, below is the total list of all $500 billion-plus in tax hikes (over the next ten years) in Obamacare, their effective dates, and where to find them in the bill.

$123 Billion: Surtax on Investment Income (Takes effect Jan. 2013): A new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single). This would result in the following top tax rates on investment income:

 

Capital Gains

Dividends

Other*

2012

15%

15%

35%

2013+

23.8%

43.4%

43.4%

 

*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations.  It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income.  It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans.  The 3.8% surtax does not apply to non-resident aliens. (Bill: Reconciliation Act; Page: 87-93)

$86 Billion: Hike in Medicare Payroll Tax (Takes effect Jan. 2013): Current law and changes:

 

First $200,000
($250,000 Married)
Employer/Employee

All Remaining Wages
Employer/Employee

Current Law

1.45%/1.45%
2.9% self-employed

1.45%/1.45%
2.9% self-employed

Obamacare Tax Hike

1.45%/1.45%
2.9% self-employed

1.45%/2.35%
3.8% self-employed

 
Bill: PPACA, Reconciliation Act; Page: 2000-2003; 87-93
 

$65 Billion: Individual Mandate Excise Tax and Employer Mandate Tax (Both taxes take effect Jan. 2014):

Individual: Anyone not buying “qualifying” health insurance as defined by Obama-appointed HHS bureaucrats must pay an income surtax according to the higher of the following

 

1 Adult

2 Adults

3+ Adults

2014

1% AGI/$95

1% AGI/$190

1% AGI/$285

2015

2% AGI/$325

2% AGI/$650

2% AGI/$975

2016 +

2.5% AGI/$695

2.5% AGI/$1390

2.5% AGI/$2085

 
Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS). Bill: PPACA; Page: 317-337

Employer: If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees.  Applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). Bill: PPACA; Page: 345-346

(Combined score of individual and employer mandate tax penalty: $65 billion)

$60.1 Billion: Tax on Health Insurers (Takes effect Jan. 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year.  Phases in gradually until 2018.  Fully-imposed on firms with $50 million in profits. Bill: PPACA; Page: 1,986-1,993

$32 Billion: Excise Tax on Comprehensive Health Insurance Plans (Takes effect Jan. 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family).  Higher threshold ($11,500 single/$29,450 family) for early retirees and high-risk professions.  CPI +1 percentage point indexed. Bill: PPACA; Page: 1,941-1,956

$23.6 Billion: “Black liquor” tax hike (Took effect in 2010) This is a tax increase on a type of bio-fuel. Bill: Reconciliation Act; Page: 105

$22.2 Billion: Tax on Innovator Drug Companies (Took effect in 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year. Bill: PPACA; Page: 1,971-1,980

$20 Billion: Tax on Medical Device Manufacturers (Takes effect Jan. 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax.  Exempts items retailing for <$100. Bill: PPACA; Page: 1,980-1,986

$15.2 Billion: High Medical Bills Tax (Takes effect Jan 1. 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only. Bill: PPACA; Page: 1,994-1,995

$13.2 Billion: Flexible Spending Account Cap – aka “Special Needs Kids Tax” (Takes effect Jan. 2013): Imposes cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2013. There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. Bill: PPACA; Page: 2,388-2,389

$5 Billion: Medicine Cabinet Tax (Took effect Jan. 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin). Bill: PPACA; Page: 1,957-1,959

$4.5 Billion: Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D (Takes effect Jan. 2013) Bill: PPACA; Page: 1,994

$4.5 Billion: Codification of the “economic substance doctrine” (Took effect in 2010): This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed. Bill: Reconciliation Act; Page: 108-113

$2.7 Billion: Tax on Indoor Tanning Services (Took effect July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons. Bill: PPACA; Page: 2,397-2,399

$1.4 Billion: HSA Withdrawal Tax Hike (Took effect Jan. 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent. Bill: PPACA; Page: 1,959

$0.6 Billion: $500,000 Annual Executive Compensation Limit for Health Insurance Executives (Takes effect Jan. 2013): Bill: PPACA; Page: 1,995-2,000                                                                                                                 

$0.4 Billion: Blue Cross/Blue Shield Tax Hike (Took effect in 2010): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services. Bill: PPACA; Page: 2,004

$ Negligible: Excise Tax on Charitable Hospitals (Took effect in 2010): $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS. Bill: PPACA; Page: 1,961-1,971

$ Negligible: Employer Reporting of Insurance on W-2 (Took effect in Jan. 2012): Preamble to taxing health benefits on individual tax returns. Bill: PPACA; Page: 1,957

[PDF of Press Release]

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AZ BOB

YOU HEARD, would you be interested in buying the Golden Gate Bridge, I can make you a sweet deal, no money down???


If the mandate is a tax, Obama lied his way into office


Posted by John Kartch on Thursday, June 28th, 2012, 12:06 PM PERMALINK


Sept. 12, 2008:  Speaking in Dover, New Hampshire candidate Obama said:

“I can make a firm pledge.  Under my plan, no family making less than $250,000 a year will see any form of tax increase.  Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”  [Video]

Oct. 3, 2008: During a nationally televised Vice-Presidential debate in St. Louis candidate Joe Biden said:

 “No one making less than $250,000 under Barack Obama’s plan will see one single penny of their tax raised whether it’s their capital gains tax, their income tax, investment tax, any tax.” [Transcript]

Feb. 24, 2009: In an address to a joint session of Congress President Obama restated the promise in forceful terms:

“If your family earns less than $250,000 a year, you will not see your taxes increased a single dime.  I repeat: not one single dime.” [Transcript] [Video]

April 15, 2009: During a White House press briefing, spokesman Robert Gibbs was asked if Obama’s tax pledge applied “to the health care bill.”  Gibbs replied:

 “The statement didn’t come with caveats.”  [Transcript] [Video]

Yet Obama’s commitment to the American people was thrown out the window when he signed the healthcare bill into law. The seven Obamacare tax increases that break his “firm pledge” are: 

1. The Obamacare Individual Mandate Excise Tax:  Starting in 2014, anyone not buying “qualifying” health insurance – as defined by Obama-appointed bureaucrats -- must pay an income surtax according to the higher of the following:

 

1 Adult

2 Adults

3+ Adults

2014

1% AGI/$95

1% AGI/$190

1% AGI/$285

2015

2% AGI/$325

2% AGI/$650

2% AGI/$975

2016 +

2.5% AGI/$695

2.5% AGI/$1390

2.5% AGI/$2085

 

2. The Obamacare Medicine Cabinet Tax:  This tax took effect in January 2011 and prevents Americans from being able to use their health savings account (HSA),flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

3. The Obamacare Flexible Spending Account Cap – aka “Special Needs Kids Tax”: Starting in January 2013, Obamacare imposes a cap on FSAs of $2500 (now unlimited under federal law). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education

4. The Obamacare "Haircut" to the Medical Itemized Deduction from 7.5% to 10% of AGI: Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  Beginning in January 2013, this new Obamacare provision imposes a threshold of 10 percent of AGI. 

5. The Obamacare HSA Withdrawal Tax Hike: This provision, which took effect in January 2011, increases the tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

6. The Obamacare Tax on Indoor Tanning Services:  Since July of 2010, Americans using indoor tanning salons face a new 10 percent excise tax.

7. Obamacare Excise Tax on Comprehensive Health Insurance Plans: Starting in 2018, this provision imposes a new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family).  Higher thresholds exists for early retirees and those in high-risk professions.

None of the above tax increases contain any exemption whatsoever for families making less than $250,000 per year.

[Printable PDF of this document]

 

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Romney: "The only solution to taming an out-of-control-spending government is to cut spending."


Posted by John Kartch on Monday, June 18th, 2012, 4:36 PM PERMALINK


WASHINGTON, D.C.— As a guest on Face the Nation this week, GOP Presidential candidate Mitt Romney reminded official Washington that the government has an overspending problem, not an under-taxing problem:

BOB SCHIEFFER, HOST:  “You were one of the vast majority of Republicans who signed the pledge that was circulated by the leading anti-tax advocate, Grover Norquist, no new taxes under any circumstances.  And I remember once, back during one of the primaries, you were asked if you would agree to $1 in taxes if you could get $10 cut in spending cuts, and you said at that time, no, I wouldn`t even accept that.

Do you still feel that way?”

ROMNEY:  “Well, we all felt that way. And the reason is that government, at all levels today, consumes about 37 percent of our economy.”

SCHIEFFER:  “But do you still feel...”

ROMNEY: “Let me go on and explain. And the answer is I do feel that way. Government is big and getting larger, and there are those who think, well, the answer is just to take a little more from the American people, just give us a little more. And there are places that have gone that way. California, for instance, keeps raising taxes more and more and more. And funny thing, the more they raise in taxes, the deficits get larger and larger. The only solution to taming an out-of-control-spending government is to cut spending. And my policies reduce the rate of spending, bring government expenses from 25 percent -- federal expenses -- from 25 percent of the economy down to 20 percent, and ignite growth of our economy.

That`s the way that we`re going to balance our budget is getting people back to work with rising incomes again, so we`re going to get bigger tax revenues as a result of that good news.”

[PDF]

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WSJ Editorial Board, Walker, Rubio Rebuke Jeb Bush's "Grand Bargain" Tax Increase


Posted by John Kartch on Friday, June 15th, 2012, 4:42 PM PERMALINK


WASHINGTON, D.C.— Following his recent remarks endorsing a hypothetical 10-1 promised-spending-cuts-to-tax-hikes deal, former Florida Governor Jeb Bush has been cheered by left-of-center editorial pages across the land as well as Democrat elected officials including Senate Majority Leader Harry Reid. Meanwhile, Bush’s tax increase position has been rebuked by, among others, Gov. Scott Walker (R-Wis.), Sen. Marco Rubio (R-Fla.) and the Wall Street Journal editorial board.

RUBIO:

On Wednesday, BloombergBusinessweek reported:

Florida Senator Marco Rubio said he wouldn’t accept revenue increases as part of a deficit deal that also cut spending to prevent a U.S. fiscal crisis, saying it’s a “different time” than when former President George H.W. Bush embraced such an agreement in 1990.

The first-term Republican, a prospect to be Mitt Romney’s vice presidential running mate, said he favors a broad agreement to simplify and bring more certainty to the tax code, and argued that it ultimately would bring additional revenue to the government. He ruled out including revenue increases in the plan, saying that would frustrate economic growth.

WALKER:

On Thursday, following Gov. Scott Walker’s appearance at the Monitor Breakfast, Huffington Post reported:

Walker also rejected Bush's statement that presumptive GOP presidential nominee Mitt Romney should accept a plan exchanging $10 in spending cuts for $1 in revenue.

"I just don't believe that the problem in government is that we don't tax enough. I think it's not only that we don't control our spending enough, we don't use our resources appropriately," he told reporters. "I think there's also not enough out there to help the private sector stimulate growth. I think that's one of the big things that's missing in the equation.”

WALL STREET JOURNAL EDITORIAL PAGE:

Today, the Wall Street Journal published an editorial titled “Phony Bush Nostalgia -- Beware liberals bestowing praise 20 years later”:

But other than filial piety, there's no good reason to defend the 1990 budget deal, which cost his father a second term and helped to make voters more cynical about politics.

Democrats loved the 1990 deal because a Republican President repudiated his most memorable campaign pledge: "Read my lips: No new taxes." Democrats ran Congress during the Bush 41 Presidency, and Senate Majority Leader George Mitchell refused any budget deal unless Mr. Bush broke his pledge. Mr. Bush agreed, trading what was claimed to be $1 of tax increases for $2 of spending cuts. In practice the taxes were real but spending increased.

The $137 billion tax increase hit as the economy was weakening and contributed to what was already a recession. Mr. Bush fought for a cut in the capital gains tax to spur investment, and the Senate mustered 51 bipartisan votes for it. But Mr. Mitchell killed it with a filibuster, as he did every other Bush attempt to spur growth. The media never portrayed Mr. Mitchell as an obstructionist.

The tax increase, which raised the top income-tax rate to 31% from 28% (plus the hidden increase from a phase-out of deductions and exemptions), also began the long-unraveling of tax reform. Reagan's 1986 reform passed on the principle of lower rates with fewer loopholes. But once another Republican President agreed to higher rates, Democrats pocketed the concession and demanded more. Bill Clinton campaigned for higher rates and lifted the top rate to 39.6%. The tax code has since only grown more complicated.

The budget deal was disastrous for Republicans because it undermined their main fiscal difference with Democrats. It was also the kind of insider deal that united both parties in conspiring against the voters to increase spending. That painful lesson helps to explain why many Republicans who are old enough to remember don't want to repeat the experience.


Americans for Tax Reform has pointed out the lesson of the 1990 “grand bargain”:

-What was Promised:  Congressional Democrats convinced a number of Republicans to join them in a bipartisan deal promising $2 in spending cuts for every $1 in tax increases. President Bush signed the deal on November 5, 1990.

-What Actually Happened:  Every penny of the tax increases ($137 billion from 1991-1995) went through. Not only did the Democrats break their promise to cut spending below the CBO baseline by $274 billion—they actually spent $23 billion above CBO’s pre-budget deal spending baseline.

34 House Republicans broke their own Taxpayer Protection Pledges and went along with this one-sided “deal.”  As a result, Republicans lost 8 seats in the 1990 Congressional midterms, and President Bush only received 38 percent of the vote in the 1992 Presidential election.

Moral of the story: When bipartisan deals are struck promising to cut spending and raise taxes, the spending cuts don’t materialize but the tax hikes do.

[PDF of Press Release]

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Coburn to Republicans: Hike Taxes or Find Another Country to Live In


Posted by John Kartch on Friday, May 11th, 2012, 4:41 PM PERMALINK


Even after the debt ceiling and Supercommittee standoffs, Senator Tom Coburn was still advocating for a tax increase.  As a guest on C-SPAN Washington Journal on December 14, 2011, Coburn said:

I would tell every Republican out there:  if you think in this time of divided government that we're not going to be able to come to an agreement without some revenue increases, that you might as well go find another country to live in. There is no way we're going to solve our problems without compromise. And part of that compromise is that we are going to have to have more revenues.

Coburn has been openly calling for tax increases for close to two years. Here is a list of five additional Coburn Let's Raise Taxes quotations.

So, what do you say, Senator?

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Flashback: Deer-in-Headlights Goolsbee Dodges Questions about Obamacare Middle Class Tax Hikes


Posted by John Kartch on Tuesday, April 17th, 2012, 1:46 PM PERMALINK


During his testimony at a Jan. 26, 2011 House Ways & Means Committee hearing on the new healthcare law, Austan Goolsbee squirmed and obfuscated while repeatedly denying an inconvenient truth about Obamacare: the law contains at least seven tax hikes on those making less than $250,000 per year -- a violation of President Obama’s central campaign promise not to sign into law “any form of tax increase” on these families.

Rep. Pat Tiberi (R-Ohio) simply asked Goolsbee, -- then-chairman of the White House Council of Economic Advisers -- whether a series of tax hikes in Obamacare were indeed tax hikes.

Below are the cryptic and dishonest replies from Dr. Goolsbee when asked whether each of the provisions in Obamacare were indeed a tax increase (Click here to watch the video clip):

Rep. Tiberi: A new tax on individuals who did not purchase government approved health insurance?

            Austan Goolsbee: uh- I don’t think that’s an accurate way to describe it, no.

            Tiberi: Not a new tax?

            Goolsbee: I don’t think that’s an accurate way.

(Americans for Tax Reform:  The individual mandate excise tax takes effect in 2014, and when fully phased in two years later will require those not purchasing “qualifying” health insurance – as defined by the government – will have to pay a tax equaling 2.5% of AGI or $695, whichever is greater).

Tiberi: A new ban on the use of flexible savings accounts, HSAs, HRAs, on using pre-tax income to purchase over the counter drugs?

Goolsbee: uh I-I don’t, that’s not a tax increase of a normal form and that’s part of a broader reform effort obviously.

(Americans for Tax Reform: Under Obamacare, an individual may no longer use Flexible Savings Accounts (FSAs), Health Savings Accounts (HSAs), or Health Reimbursement Accounts (HRAs) to purchase over-the-counter medicines. The 40 million Americans using these accounts can no longer purchase items such as aspirin, cold and flu medicine, menstrual cramp pain relievers, antihistamines, and antacids).

Tiberi: An increase from 7 and a half percent to 10 percent of income the threshold after which individuals can deduct out of pocket medical expenses?

            Goolsbee: . . . (shakes his head)

            Tiberi: Not a tax increase?

Goolsbee: uh, I, as I’m saying, the, I do not consider the affordable care act as a whole to be a tax increase on people less than $200,000.

(Americans for Tax Reform: This provision puts a tough burden on individuals with particularly high medical expenses. Currently, an individual can deduct any amount of income they spent on medical expenses to the extent those expenses exceed 7.5 percent of AGI from their income. The Obamacare law raises that threshold to 10 percent. As a result families will be able to deduct less in medical expenses than they can currently. By shrinking this deduction, Obamacare increases (again) the total amount of taxable income. This means those individuals are going to have to pay more in taxes).

Tiberi: There are two more. Impose a new $2500 cap on family’s ability to use pre-tax dollars to fund an FSA?

Goolsbee: I twen- could you—

            Tiberi: $2500 cap on—

            Goolsbee: $2500 cap; I don’t, I don’t consider that a tax increase.

(Americans for Tax Reform:  Taking effect in January 2013, this is another provision in Obamacare that leads to a substantial amount of pre-tax income spent on medical expenses becoming taxable income; again raising taxes by raising the amount of income that an individual is taxed on.

Currently, families can put their pre-tax income into a Flexible Savings Account (FSA) without a federally imposed cap to pay for various medical expenses. This greatly helps with parents trying to pay for expensive prescriptions for their children or parents who put money into the account to pay tuition for special needs schools or tutoring. By placing the $2500 cap on the amount of pre-tax income that can be used in this way, families will see their taxes potentially skyrocket depending on how much over that amount that they currently put in their FSAs. This cap has no exceptions of any kind, not for special needs children, not for Americans making less than $200,000 per year, and not for families making less than $250,000 per year).

                Tiberi: A new ten percent tax on indoor tanning services?

                Goolsbee: (chuckles) uh. . .

                Tiberi: Not a tax increase?

                Goolsbee: Well, that seems like a strictly voluntary, uh, thing that one could choose.

                Tiberi: But not a tax increase?

                Goolsbee: . . . (shrugs)

(Americans for Tax Reform:  Goolsbee’s laughter shows his cluelessness as to how this tax has been impacting Americans since it went into effect July 1, 2010.  This petty, burdensome, nanny-state tax affects both the business owner and the end user.  Industry estimates from the Indoor Tanning Association show that 30 million Americans visit an indoor tanning facility in a given year, and over 50 percent of salon owners are women.  There is no exception granted for those making less than $250,000).

 

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Obama: Thank You For Not Asking About My Tax Hikes on Families Making Less Than $250,000


Posted by John Kartch on Tuesday, April 10th, 2012, 4:00 PM PERMALINK


Stumping for his “Buffett Rule” tax increase in Florida today, President Barack Obama said the following:

“For those people who make under $250,000 a year – like 98 percent of American families do – then your taxes don’t go up.” – Barack Obama, April 10, 2012

But since taking office, President Obama has signed into law at least seven new or higher taxes on families making less than $250,000 per year.

President Barack Obama’s central campaign promise – a “firm pledge” against “any form of tax increase” on families making less than $250,000 per year – was shattered when he signed the Affordable Care Act into law. The healthcare law contains at least seven tax hikes that unquestionably violate Obama’s pledge.

Documentation of Obama’s promise is as follows:

Speaking in Dover, New Hampshire on Sept. 12, 2008, candidate Obama said:

“I can make a firm pledge.  Under my plan, no family making less than $250,000 a year will see any form of tax increase.  Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”  [Video]

During a nationally televised Vice-Presidential debate in St. Louis on Oct. 3, 2008, candidate Joe Biden said:

 “No one making less than $250,000 under Barack Obama’s plan will see one single penny of their tax raised whether it’s their capital gains tax, their income tax, investment tax, any tax.” [Transcript]

In an address to a joint session of Congress on Feb. 24, 2009, President Obama restated the promise in forceful terms:

“If your family earns less than $250,000 a year, you will not see your taxes increased a single dime.  I repeat: not one single dime.” [Transcript] [Video]

During a White House press briefing on April 15, 2009, spokesman Robert Gibbs was asked if Obama’s tax pledge applied “to the health care bill.”  Gibbs replied:

 “The statement didn’t come with caveats.”  [Transcript] [Video]

Yet Obama’s commitment to the American people was thrown out the window when he signed the healthcare bill into law. The seven Obamacare tax increases that break his “firm pledge” are: 

1. The Obamacare Individual Mandate Excise Tax:  Starting in 2014, anyone not buying “qualifying” health insurance – as defined by Obama-appointed bureaucrats -- must pay an income surtax according to the higher of the following:

 

1 Adult

2 Adults

3+ Adults

2014

1% AGI/$95

1% AGI/$190

1% AGI/$285

2015

2% AGI/$325

2% AGI/$650

2% AGI/$975

2016 +

2.5% AGI/$695

2.5% AGI/$1390

2.5% AGI/$2085

 

2. The Obamacare Medicine Cabinet Tax:  This tax took effect in January 2011 and prevents Americans from being able to use their health savings account (HSA),flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

3. The Obamacare Flexible Spending Account Cap – aka “Special Needs Kids Tax”: Starting in January 2013, Obamacare imposes a cap on FSAs of $2500 (now unlimited under federal law). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education

4. The Obamacare "Haircut" to the Medical Itemized Deduction from 7.5% to 10% of AGI: Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  Beginning in January 2013, this new Obamacare provision imposes a threshold of 10 percent of AGI. 

5. The Obamacare HSA Withdrawal Tax Hike: This provision, which took effect in January 2011, increases the tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

6. The Obamacare Tax on Indoor Tanning Services:  Since July of 2010, Americans using indoor tanning salons face a new 10 percent excise tax.

7. Obamacare Excise Tax on Comprehensive Health Insurance Plans: Starting in 2018, this provision imposes a new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family).  Higher thresholds exists for early retirees and those in high-risk professions.

None of the above tax increases contain any exemption whatsoever for families making less than $250,000 per year.

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Why is the IRS Diverting $500 Million to Enforce Obamacare?


Posted by John Kartch on Monday, April 9th, 2012, 3:18 PM PERMALINK


Millions of Americans are struggling to meet the April 17 IRS tax filing deadline. Today, The Hill newspaper reports that the IRS is receiving an emergency infusion of $500 million from the Obama administration – not to enforce the existing convoluted tax code – but to impose the 2,700-page Obamacare law on an unwilling country. 

Why would the IRS need hundreds of millions of dollars to implement a healthcare law?

Because Obamacare is one of the largest tax hikes in history, saddling American families and small employers with 20 new or higher taxes.

Click below to see the full list of Obamacare tax increases by 1) size of tax hike and 2) order of effective date:

Comprehensive List of Obamacare Tax Hikes in Order of Effective Date

Comprehensive Obamacare Tax Hikes Listed by Size of Tax Hike

 

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Definitive List of Obamacare Tax Hikes Listed by Size of Tax Hike


Posted by John Kartch, Ryan Ellis on Tuesday, March 27th, 2012, 12:22 PM PERMALINK


WASHINGTON, DC -- Two years ago today, Obamacare was signed into law. One of the largest tax increases in American history, Obamacare contains 20 new or higher taxes on American families and small businesses—seven of which fall on families making less than $250,000 per year (in direct violation of President Obama’s campaign promise.)

Arranged by their respective sizes according to CBO scores, below is the total list of all $500 billionplus in tax hikes (over the next ten years) in Obamacare, their effective dates, and where to find them in the bill.

1. Surtax on Investment Income ($123 billion/Jan. 2013):  Creation of a new, 3.8 percent surtax on
investment income earned in households making at least $250,000 ($200,000 single). This would result
in the following top tax rates on investment income: Bill: Reconciliation Act; Page: 87-93

  Capital Gains Dividends Other*
2012
2013+
15%
23.8%
15%
43.4%
35%
43.4%

*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8% surtax does not apply to non-resident aliens

2. Hike in Medicare Payroll Tax ($86.8 bil/Jan 2013): Current law and changes:

  First $200,000
($250,000 Married)
Employer/Employee
All Remaining Wages
Employer/Employee

Current Law
 

Obamacare Tax Hike

1.45%/1.45%
2.9% self-employed

1.45%/1.45%
2.9% self-employed

1.45%/1.45%
2.9% self-employed

1.45%/2.35%
3.8% self-employed

Bill: PPACA, ReconciliationAct; Page: 2000-2003; 87-9

3. Individual Mandate Excise Tax (Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following

  1 Adult 2 Adults 3+ Adults
2014
2015
2016
 1% AGI/$95
 2% AGI/$325
 2.5% AGI/$695
 1% AGI/$190
 2% AGI/$650
 2.5% AGI/$1,390
 1% AGI/$285
 2% AGI/$975
 2.5% AGI/$2,085

Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS). Bill: PPACA; Page: 317-33

4. Employer Mandate Tax (Jan 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. Applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). Bill: PPACA; Page: 345-346

Combined score of individual and employer mandate tax penalty: $65 billion/10 years

5. Tax on Health Insurers ($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year.  Phases in gradually until 2018. Fully-imposed on firms with $50 million in profits. Bill: PPACA; Page: 1,986-1,993

6. Excise Tax on Comprehensive Health Insurance Plans ($32 bil/Jan 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). Higher threshold ($11,500 single/$29,450 family) for early retirees and high-risk professions. CPI +1 percentage point indexed. Bill: PPACA; Page: 1,941-1,956

7. “Black liquor” tax hike (Tax hike of $23.6 billion). This is a tax increase on a type of bio-fuel. Bill: Reconciliation Act; Page: 105

8. Tax on Innovator Drug Companies ($22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year. Bill: PPACA; Page: 1,971-1,980

9. Tax on Medical Device Manufacturers ($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. Exempts items retailing for <$100. Bill: PPACA; Page: 1,980-1,986

10. Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI ($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only. Bill: PPACA; Page: 1,994-1,995

11. Flexible Spending Account Cap – aka “Special Needs Kids Tax” ($13 bil/Jan 2013): Imposes cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2013. There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. Bill: PPACA; Page: 2,388-2,389

12. Medicine Cabinet Tax ($5 bil/Jan 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin). Bill: PPACA; Page: 1,957-1,959

13. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D ($4.5 bil/Jan 2013) Bill: PPACA; Page: 1,994

14. Codification of the “economic substance doctrine” (Tax hike of $4.5 billion). This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed. Bill: Reconciliation Act; Page: 108-113

15. Tax on Indoor Tanning Services ($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons. Bill: PPACA; Page: 2,397-2,399

16. HSA Withdrawal Tax Hike ($1.4 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax advantaged accounts, which remain at 10 percent. Bill: PPACA; Page: 1,959

17. $500,000 Annual Executive Compensation Limit for Health Insurance Executives ($0.6 bil/Jan 2013). Bill: PPACA; Page: 1,995-2,000

18. Blue Cross/Blue Shield Tax Hike ($0.4 bil/Jan 2010): The special tax deduction in current law  for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium  revenues are spent on clinical services. Bill: PPACA; Page: 2,004

19. Excise Tax on Charitable Hospitals (Min$/immediate): $50,000 per hospital if they fail to meet  new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS. Bill: PPACA; Page: 1,961-1,971

20. Employer Reporting of Insurance on W-2 (Min$/Jan 2012): Preamble to taxing health benefits on individual tax returns. Bill: PPACA; Page: 1,957

Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose all tax increases. For more information or to arrange an interview please contact John Kartch at (202) 785-0266 or by email at jkartch@atr.org

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Comprehensive Obamacare Tax Hikes Listed by Size of Tax Hike


Posted by John Kartch, Ryan Ellis on Friday, March 23rd, 2012, 12:02 PM PERMALINK


Two years ago today, Obamacare was signed into law. One of the largest tax increases in American history, Obamacare contains 20 new or higher taxes on American families and small businesses—seven of which fall on families making less than $250,000 per year (in direct violation of President Obama’s campaign promise). 

Arranged by their respective sizes according to CBO scores, below is the total list of all $500 billion-plus in tax hikes (over the next ten years) in Obamacare, their effective dates, and where to find them in the bill:

Click here to view

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