John Kartch

Fate of Obamacare’s Individual Mandate Tax Hangs in Balance

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Posted by John Kartch, Abigail Marone on Friday, September 22nd, 2017, 2:35 PM PERMALINK

Kindly urge Sen. Rand Paul to vote YES on Graham-Cassidy to abolish Obamacare's mandate tax.
Twitter: @randpaul
Bowling Green, KY Office: 270-782-8303
Washington, DC Office: 202-224-4343

The Graham-Cassidy bill repeals Obamacare’s individual mandate tax. The tax hits 6.7 million American households. 79% of these households have incomes of less than $50,000 per year. A new state-by-state breakdown compiled by the office of Sen. Steve Daines (R-Mont.) using official IRS data for tax year 2015 can be found here.

The fate of the tax depends on the votes of the senators from key states below:

ALASKA

  • If Sen. Lisa Murkowski votes YES on Graham-Cassidy 19,970 Alaska households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $12,836,000 for choosing not to purchase Obamacare, an average tax of $644 per household
  • 64% of Alaska households paying this tax make less than $50,000 per year.
  • If Sen. Murkowski votes NO, Alaskans will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

MAINE

  • If Sen. Susan Collins votes YES on Graham-Cassidy 34,030 Maine households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $15,490,000 for choosing not to purchase Obamacare, an average tax of $455 per household.
  • 79% of Maine households paying this tax make less than $50,000 per year.
  • If Sen. Collins votes NO, Mainers will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

ARIZONA

  • If Sen. John McCain votes YES on Graham-Cassidy 153,700 Arizona households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $69,770,000 for choosing not to purchase Obamacare, an average tax of $454 per household.
  • 82% of Arizona households paying this tax make less than $50,000 per year.
  • If Sen. McCain votes NO, Arizonans will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

KENTUCKY

  • If Sen. Rand Paul votes YES on Graham-Cassidy 79,260 Kentucky households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $31,262,000 for choosing not to purchase Obamacare, an average tax of $394 per household.
  • 83% of Kentucky households paying this tax make less than $50,000 per year.
  • If Sen. Paul votes NO, Kentuckians will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

INDIANA

  • If Sen. Joe Donnelly votes YES on Graham-Cassidy 138,170 Indiana households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $59,463,000 for choosing not to purchase Obamacare, an average tax of $430 per household.
  • 81% of Indiana households paying this tax make less than $50,000 per year.
  • If Sen. Donnelly votes NO, Indianans will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

MISSOURI

  • If Sen. Claire McCaskill votes YES on Graham-Cassidy 116,580 Missouri households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $50,016,000 for choosing not to purchase Obamacare, an average tax of $429 per household.
  • 81% of Missouri households paying this tax make less than $50,000 per year.
  • If Sen. McCaskill votes NO, Missourians will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

MONTANA        

  • If Sen. Jon Tester votes YES on Graham-Cassidy 29,450 Montana households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $14,341,000 for choosing not to purchase Obamacare, an average tax of $487 per household.
  • 75% of Montana households paying this tax make less than $50,000 per year.
  • If Sen. Tester votes NO, Montanans will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

NORTH DAKOTA

  • If Sen. Heidi Heitkamp votes YES on Graham-Cassidy 17,170 North Dakota households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $7,826,000 for choosing not to purchase Obamacare, an average tax of $456 per household.
  • 77% of North Dakota households paying this tax make less than $50,000 per year.
  • If Sen. Heitkamp votes NO, North Dakotans will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.

 

WEST VIRGINIA

  • If Sen. Joe Manchin votes YES on Graham-Cassidy 34,360 households will no longer be stuck paying Obamacare’s individual mandate tax.
  • In 2015, these households had to pay the IRS $14,680,000 for choosing not to purchase Obamacare, an average tax of $427 per household.
  • 81% of West Virginia households paying this tax make less than $50,000 per year.
  • If Sen. Manchin votes NO, West Virginians will be forced to pay Obamacare’s individual mandate tax simply for choosing not to purchase Obamacare.
     

The individual mandate tax is one of many Obamacare taxes that violate Obama’s “firm pledge” not to raise any form of tax on any American making less than $250,000 per year. Documentation of Obama’s shattered promise can be found here. Senators voting NO on Graham-Cassidy are voting to continue to stick their constituents with this tax.

Please visit the website of the office of Sen. Daines to get a handy PDF of the state by state IRS Obamacare tax data. Call your Senators and urge them to vote YES on Graham-Cassidy.

Photo Credit: Pictures of Money

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Bernie Calls For 52% Tax Rate for Government Healthcare

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Posted by John Kartch on Tuesday, September 19th, 2017, 1:42 PM PERMALINK

Sen. Bernie Sanders is once again calling for extreme tax hikes to pay for his plans, this time for a government-run single payer health care system. The plan will come in at a cost of $1.38 trillion per year and will impose across the board tax hikes, including:

-An income tax rate of 52%

-Taxing ALL capital gains as ordinary income, meaning the current top capital gains rate of 23.8% would jump to 52%

-Massive hike in the Death Tax

-American families making as little as $28,900 per year will face a 2.2 percent tax on their income

-A $630 billion tax hike aimed at employers, which will just end up hitting workers

-Sanders also calls for more tax complexity and more tax brackets: 37%, 43%, 48% and of course the 52% 

ATR commends Sen. John Barrasso (R-Wyo.) for asking CBO to score the Sanders plan. As with most left wing programs, the Sanders plan will undoubtedly cost much more than he claims.

Photo Credit: "Bernie Sanders" by Scott Pelkey ScottP-Photography/Flickr, Under CC BY-SA 2.0

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Hillary ‘fascinated’ by Carbon Tax

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Posted by Abigail Marone, John Kartch on Wednesday, September 13th, 2017, 3:20 PM PERMALINK

In her new book What Happened Hillary Clinton reveals she was “fascinated” by the idea of a carbon tax and a financial transactions tax. She wanted to take the money generated by both taxes, filter it through the Washington D.C. bureaucracy, and then send everyone a check as part of a Universal Basic Income scheme.

The whole process would be “a way of making every American feel more connected to our country and to one another – part of something bigger than ourselves.”

She writes:

If you view the nation’s financial system as a shared resource, then you can start raising real money from things like a financial transactions tax. Same with the air we breathe and carbon pricing. Once you capitalize the fund, you can provide every American with a modest basic income every year. Besides cash in people’s pockets, it would also be a way of making every American feel more connected to our country and to one another – part of something bigger than ourselves.

Clinton said she worked for weeks on the issue:

I was fascinated by this idea, as was my husband, and we spent weeks working with our policy team to see if it could be viable enough to include in my campaign.

Though she found the idea “exciting” and “tantalizing” it was only dropped because she “couldn’t make the numbers work.”

During the campaign, Clinton publicly proposed a series of tax increases, which amounted to a minimum $1 trillion over ten years. She campaigned on a 65% Death Tax, a personal income tax hike, a corporate income tax hike, and an “exit tax.” She also said she would not veto a payroll tax hike on all Americans, and cracked open the door to a carbon tax. Clinton even endorsed a steep new local soda tax in Philadelphia.

The official 2016 Democrat Party platform calls for a carbon tax. The official 2016 Republican Party platform rejects any and all carbon taxes.

In the book, Clinton suggested yet another tax: “taxing net worth.” She describes this tax as a “transformative” idea.

Americans for Tax Reform has documented Clinton’s entire tax hike career, at a dedicated website: www.HighTaxHillary.com

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The Top 20% of Households Pay 88% of Federal Income Taxes

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Posted by Alex Hendrie, John Kartch on Thursday, July 27th, 2017, 1:37 PM PERMALINK

According to the Congressional Budget Office:

 

-The top one percent of households pay 38.3% of federal income taxes and 25.4% of total federal taxes.

- The top 20 percent of households pay 88% of federal income taxes and 69% of total federal taxes.

- The top one percent of households pay an average income tax rate of 23.6% while the middle quintile pays an average income tax rate of 2.6%.

- The top one percent of households pay an average total tax rate of 34% while the middle quintile pays an average total tax rate of over 12.8%.  

- The top 20 percent of households pay an average total tax rate of 26.3 percent while the middle quintile pays an average total tax rate of 12.8%.

The data is shown below:

Photo Credit: Pictures of Money

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List of Obamacare Taxes Repealed in Senate Health Bill

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Posted by John Kartch on Thursday, July 13th, 2017, 5:01 PM PERMALINK

 

[Click here for a printable version of this list.]

The new Senate health bill abolishes the following Obamacare taxes:

  • Abolishes the Obamacare Individual Mandate Tax which hits 8 million Americans each year. 
     
  • Abolishes the Obamacare Employer Mandate Tax. 
     
  • Abolishes Obamacare’s Medicine Cabinet Tax, which hits 20 million Americans with Health Savings Accounts and 30 million Americans with Flexible Spending Accounts. This is a $5.6 billion tax cut.
     
  • Abolishes Obamacare’s Flexible Spending Account tax on 30 million Americans. This is an $18.6 billion tax cut.
     
  • Abolishes Obamacare’s Chronic Care Tax on 10 million Americans with high out of pocket medical expenses. This is a $36 billion tax cut.
     
  • Abolishes the Obamacare health insurance tax. This is a $144.7 billion tax cut.
     
  • Abolishes the Obamacare medical device tax. This is a $19.6 billion tax cut.
     
  • Abolishes the Obamacare tax on prescription medicine. This is a $25.7 billion tax cut.
     
  • Abolishes the Obamacare tax on Medicare Part D retiree prescription drug coverage. This is a $1.8 billion tax cut.
     
  • Abolishes Obamacare’s HSA withdrawal tax. This is a $100 million tax cut.
     
  • Abolishes Obamacare’s 10% excise tax on small businesses with indoor tanning services. This is a $600 million tax cut.
     
  • The Senate bill also delays (until 2026) the “Cadillac” tax on employer-provided insurance. This saves taxpayers $66 billion over the next ten years.
     
  • The Senate bill also doubles the maximum HSA contribution from $3,400 to $6,550 for individuals and from $6,750 to $13,100 for families. According to CBO, this saves taxpayers $18.6 billion.
     
  • The Senate bill also allows Americans to use Health Savings Account funds to pay for health insurance premiums. The option to use HSA funds, which are pre-tax, for insurance premiums will provide significant tax relief to millions of households. The CBO has not yet released a score for this tax cut. It is set to go into effect in 2018.

 

Reminder: President Obama had promised repeatedly that he would not raise any form of tax on any American earning less than $250,000 per year, but he broke the promise when he signed Obamacare. Passage of the Senate’s Better Care Reconciliation Act means tens of millions of middle income Americans will get tax relief from Obamacare's long list of tax hikes.

Here is a more detailed list of the Obamacare taxes abolished in the Senate bill:

REPEALED: Obamacare Individual Mandate Tax and Employer Mandate Tax: Under Obamacare, anyone not buying “qualifying” health insurance – as defined by the Obama-era Department of Health and Human Services -- must pay a steep tax to the IRS. In 2015, eight million households paid this tax. Most Americans stuck with this tax are from low and middle income households. The IRS uses the Orwellian phrase “shared responsibility payment” to describe this tax.

This tax is a minimum of $695 for individuals, while families of four have to pay a minimum of $2,085. Americans pay these amounts or 2.5% of their AGI, whichever is higher. The Senate health bill repeals this tax and the employer mandate tax.

REPEALED: Obamacare Medicine Cabinet Tax on HSAs and FSAs: Under Obamacare, the 20.2 million Americans with a Health Savings Account and the 30 million covered by a Flexible Spending Account are no longer able to purchase over-the-counter medicines using these pre-tax account funds. Examples include cold, cough, and flu medicine, menstrual cramp relief medication, allergy medicines, and dozens of other common medicine cabinet health items. The Senate health bill will abolish this tax, saving Americans $5.6 billion over the next ten years.

REPEALED: Obamacare Flexible Spending Account Tax: Under Obamacare, the 30 million Americans who use a pre-tax Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs face an Obamacare-imposed cap of $2,500. The Senate health bill will abolish this tax, saving Americans $18.6 billion over the next ten years.

Before Obamacare, the accounts were unlimited under federal law, though employers were allowed to set a cap. Now, parents looking to sock away extra money to pay for braces find themselves quickly hitting this new cap, meaning they have to pony up some or all of the cost with after-tax dollars. Needless to say, this tax especially impacts middle class families.

There is one group of FSA owners for whom this new cap is particularly cruel and onerous: parents of special needs children. Families with special needs children often use FSAs to pay for special needs education. Tuition rates at special needs schools can run thousands of dollars per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax increase limits the options available to these families.

According to the U.S. Census Bureau, there are 2.8 million special needs children nationwide. As noted by the Neurological and Physical Abilitation Center, this Obamacare tax "will especially hurt parents of special needs kids because many use FSAs to pay for special needs education."

REPEALED: Obamacare Chronic Care Tax: Under Obamacare, this income tax increase directly targets middle class Americans with high medical bills. The tax hits 10 million households every year. Before Obamacare, Americans facing high medical expenses were allowed an income tax deduction to the extent that those expenses exceeded 7.5 percent of adjusted gross income (AGI). Obamacare now imposes a threshold of 10 percent of AGI. Therefore, Obamacare not only makes it more difficult to claim this deduction, it widens the net of taxable income.

According to the IRS, approximately 10 million families took advantage of this tax deduction each year before Obamacare. Almost all were middle class: The average taxpayer claiming this deduction earned just over $53,000 annually in 2010. ATR estimates that the average income tax increase for the average family hit with this Obamacare tax is $200 - $400 per year.

The Senate health bill will abolish this tax, saving Americans $36 billion over the next ten years.

REPEALED: Obamacare HSA Withdrawal Tax Hike: Under Obamacare, this provision 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. The Senate health bill will abolish this tax, saving Americans $100 million over the next ten years.

REPEALED: Obamacare Ten Percent Excise Tax on Indoor Tanning: The Obamacare 10 percent tanning tax has wiped out thousands of small businesses, many owned by women. This Obamacare tax increase was the first to go into effect (July 2010). This petty, burdensome, nanny-state tax hits both the business owner and the consumer. Industry estimates show that 30 million Americans visit an indoor tanning facility in a given year, and over 50 percent of salon owners are women. 

The ten percent tax is steep and its complexity is especially burdensome to employers. Adding insult to injury, the Obama IRS didn't bother to provide compliance guidelines after three quarterly tax payment deadlines had passed. The Obama IRS was called out by the Treasury Inspector General, who wrote: "By the time [IRS] notices were issued, tanning excise tax returns had been due for three quarters. Late filing of these returns would result in the taxpayer owing the unpaid tax, plus interest and penalties."

The Senate health bill will abolish this tax, saving Americans $600 million over the next ten years.

REPEALED: Obamacare Health Insurance Tax: In addition to mandating the purchase of health insurance through the individual mandate tax, Obamacare directly increases the cost of insurance through the health insurance tax.

The total revenue this tax collects is set annually by Treasury and is then divided amongst insurers relative to the premiums they collect each year. While it is directly levied on the industry, the costs of the health insurance tax are inevitably passed on to small businesses that provide healthcare to their employees, middle class families through higher premiums, seniors who purchase Medicare advantage coverage, and the poor who rely on Medicaid managed care.

According to American Action Forum, the Obamacare health insurance tax will increase premiums by up to $5,000 over a decade and will directly impact 1.7 million small businesses, 11 million households that purchase through the individual insurance market and 23 million households covered through their jobs. The tax is also economically destructive – the National Federation for Independent Businesses estimates the tax could cost up to 286,000 in new jobs and cost small businesses $33 billion in lost sales by 2023.

The Senate health bill will abolish this tax, saving Americans $144.7 billion over the next ten years.

REPEALED: Obamacare Tax on Medical Device Manufacturers: Under Obamacare, this law imposes a new 2.3% excise tax on all sales of medical devices. The tax applies even if the company has no profits in a given year. The Senate health bill will abolish this tax, saving Americans $19.6 billion over the next ten years.

REPEALED: Obamacare Tax on Prescription Medicine: Obamacare imposed a tax on the producers of prescription medicine based on relative share of sales. The Senate health bill will abolish this tax, saving Americans $25.7 billion over the next ten years.

REPEALED: Obamacare Elimination of Deduction for Medicare Part D Retiree Prescription Drug Coverage: The Senate health bill will abolish this tax, saving Americans $1.8 billion over the next ten years.

Also of note:

The Senate health bill doubles the annual contribution limit for HSAs, raising the maximum contribution from $3,400 to $6,550 for individuals and from $6,750 to $13,100 for families. Under this law, taxpayers will be able to set aside more of their income as pre-tax savings. The CBO estimates this provision will save taxpayers $18.6 billion over the next ten years.

The Senate health bill expands HSAs so that Americans can use these pre-tax funds to pay for insurance premiums. The CBO has no yet released a score for this tax cut.

Click here for a printable version of this list.

 

Photo credit: Gage Skidmore

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Obamacare Repeal Bill Cuts Taxes $701 Billion

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Posted by John Kartch, Alex Hendrie on Monday, June 26th, 2017, 4:28 PM PERMALINK

The Senate’s healthcare bill repeals Obamacare taxes by $701 billion over the next ten years,  according to an analysis by the Congressional Budget Office released Monday.

Obamacare imposed a massive tax increase on the American people. As a presidential candidate in 2008, Barack Obama promised repeatedly that he would not raise any form of tax on any American earning less than $250,000 per year. But he broke the promise when he signed Obamacare. Passage of the Senate’s Better Care Reconciliation Act means tens of millions of middle income Americans will get tax relief from Obamacare's long list of tax hikes.

The Senate bill abolishes the following taxes imposed by Obama and the Democrat party in 2010 as part of Obamacare:

  • Abolishes the Obamacare Individual Mandate Tax which hits 8 million Americans each year. Combined with the Employer Mandate Tax listed immediately below, this is a $137 billion tax cut.
  • Abolishes the Obamacare Employer Mandate Tax. Combined with the Individual Mandate Tax listed immediately above, this is a $137 billion tax cut.
  • Abolishes Obamacare’s Medicine Cabinet Tax which hits 20 million Americans with Health Savings Accounts and 30 million Americans with Flexible Spending Accounts. This is a $5.6 billion tax cut.
  • Abolishes Obamacare’s Flexible Spending Account tax on 30 million Americans. This is a $18.6 billion tax cut.
  • Abolishes Obamacare’s Chronic Care Tax on 10 million Americans with high out of pocket medical expenses. This is a $36 billion tax cut.
  • Abolishes Obamacare’s HSA withdrawal tax. This is a $100 million tax cut.
  • Abolishes Obamacare’s 10% excise tax on small businesses with indoor tanning services. This is a $600 million tax cut.
  • Abolishes the Obamacare health insurance tax. This is a $144.7 billion tax cut.
  • Abolishes the Obamacare 3.8% surtax on investment income. This is a $172 billion tax cut.
  • Abolishes the Obamacare medical device tax. This is a $19.6 billion tax cut.
  • Abolishes the Obamacare tax on prescription medicine. This is a $25.7 billion tax cut.
  • Abolishes the Obamacare 0.9 Medicare payroll tax increase. This is a $58.6 billion tax cut.
  • Abolishes the Obamacare tax on retiree prescription drug coverage. This is a $1.8 billion tax cut.
  • Abolishes the Obamacare remuneration tax increase on insurers. This is a $500 million tax cut.
  • The bill also delays (until 2026) the “Cadillac” tax on employer-provided insurance. This saves taxpayers $66 billion over the next ten years.

 

Here is a more detailed list of the Obamacare taxes abolished in the Senate Bill:

Individual Mandate Tax and Employer Mandate Tax: Under Obamacare, anyone not buying “qualifying” health insurance – as defined by the Obama-era Department of Health and Human Services -- must pay an income surtax to the IRS. In 2015, eight million households paid this tax. Most make less than $250,000. The Obama administration creepily used the Orwellian phrase “shared responsibility payment” to describe this tax. The Senate health bill repeals this tax and the employer mandate tax, saving Americans $137 billion over the next ten years.

For tax year 2016, the tax is a minimum of $695 for individuals, while families of four have to pay a minimum of $2,085.

 

Households w/ 1 Adult

 

Households w/ 2 Adults

Households w/ 2 Adults & 2 children

 

2.5% AGI/$695

 

2.5% AGI/$1390

2.5% AGI/$2085

Medicine Cabinet Tax on HSAs and FSAs: Under Obamacare, the 20.2 million Americans with a Health Savings Account and the 30 - 35 million covered by a Flexible Spending Account are no longer able to purchase over-the-counter medicines using these pre-tax account funds. Examples include cold, cough, and flu medicine, menstrual cramp relief medication, allergy medicines, and dozens of other common medicine cabinet health items. The Senate health bill will abolish this tax, saving Americans $5.6 billion over the next ten years.

Flexible Spending Account Tax: Under Obamacare, the 30 - 35 million Americans who use a pre-tax Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs face an Obamacare-imposed cap of $2,500. The Senate health bill will abolish this tax, saving Americans $18.6 billion over the next ten years.

Before Obamacare, the accounts were unlimited under federal law, though employers were allowed to set a cap. Now, parents looking to sock away extra money to pay for braces find themselves quickly hitting this new cap, meaning they have to pony up some or all of the cost with after-tax dollars. Needless to say, this tax especially impacts middle class families.

There is one group of FSA owners for whom this new cap is particularly cruel and onerous: parents of special needs children.  Families with special needs children often use FSAs to pay for special needs education. Tuition rates at special needs schools can run thousands of dollars per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax increase limits the options available to these families.

Chronic Care Tax: Under Obamacare, this income tax increase directly targets middle class Americans with high medical bills. The tax hits 10 million households every year. Before Obamacare, Americans facing high medical expenses were allowed an income tax deduction to the extent that those expenses exceeded 7.5 percent of adjusted gross income (AGI). Obamacare now imposes a threshold of 10 percent of AGI. Therefore, Obamacare not only makes it more difficult to claim this deduction, it widens the net of taxable income.

According to the IRS, approximately 10 million families took advantage of this tax deduction each year before Obamacare. Almost all were middle class: The average taxpayer claiming this deduction earned just over $53,000 annually in 2010. ATR estimates that the average income tax increase for the average family claiming this tax benefit is about $200 - $400 per year.

The Senate health bill will abolish this tax, saving Americans $36 billion over the next ten years.

HSA Withdrawal Tax Hike: Under Obamacare, this provision 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. The Senate health bill will abolish this tax, saving Americans $100 million over the next ten years.

Ten Percent Excise Tax on Indoor Tanning: The Obamacare 10 percent tanning tax has wiped out an estimated 10,000 tanning salons, many owned by women. This Obamacare tax increase was the first to go into effect (July 2010). This petty, burdensome, nanny-state tax affects both the business owner and the end user. Industry estimates show that 30 million Americans visit an indoor tanning facility in a given year, and over 50 percent of salon owners are women. The Senate health bill will abolish this tax, saving Americans $600 million over the next ten years.

Health Insurance Tax: In addition to mandating the purchase of health insurance through the individual mandate tax, Obamacare directly increases the cost of insurance through the health insurance tax.

The total revenue this tax collects is set annually by Treasury and is then divided amongst insurers relative to the premiums they collect each year. While it is directly levied on the industry, the costs of the health insurance tax are inevitably passed on to small businesses that provide healthcare to their employees, middle class families through higher premiums, seniors who purchase Medicare advantage coverage, and the poor who rely on Medicaid managed care.

According to the American Action Forum, the Obamacare health insurance tax will increase premiums by up to $5,000 over a decade and will directly impact 1.7 million small businesses, 11 million households that purchase through the individual insurance market and 23 million households covered through their jobs. The tax is also economically destructive – the National Federation for Independent Businesses estimates the tax could cost up to 286,000 in new jobs and cost small businesses $33 billion in lost sales by 2023.

The Senate health bill will abolish this tax, saving Americans $144.7 billion over the next ten years.

Surtax on Investment Income: Obamacare created a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 for singles). This created a new top capital gains tax rate of 23.8%.

The capital gains tax hits income that has already been subjected to individual income taxes and is then reinvested in assets that spur new jobs, higher wages, and increased economic growth. Much of the “gains” associated with the capital gains tax is due to inflation and studies have shown that even supposedly modest increases in the capital gains tax have strong negative economic effects.

The Senate health bill will abolish this tax, saving Americans $172 billion over the next ten years.

Payroll Tax Hike: Obamacare imposes an additional 0.9 percent payroll tax on individuals making $200,000 or couples making more than $250,000. The Senate health bill will abolish this tax, saving Americans $58.6 billion over the next ten years.

Tax on Medical Device Manufacturers: Under Obamacare, this law imposes a new 2.3% excise tax on all sales of medical devices. The tax applies even if the company has no profits in a given year. The Senate health bill will abolish this tax, saving Americans $19.6 billion over the next ten years.

Tax on Prescription Medicine: Obamacare imposed a tax on the producers of prescription medicine based on relative share of sales. The Senate health bill will abolish this tax, saving Americans $25.7 billion over the next ten years.

Elimination of Deduction for Retiree Prescription Drug Coverage: The Senate health bill will abolish this tax, saving Americans $1.8 billion over the next ten years.

“Obamacare promised to reduce individual insurance premiums – a lot. Premiums rose – a lot,” said Grover Norquist, president of Americans for Tax Reform. Obama promised no tax hikes on anyone earning less than $250,000 – that was a lie. Taxes increased. Healthcare costs increased. Obamacare failed. By its own promised goals, it failed. It is time to repeal failure and reform healthcare to protect consumers, not bureaucracy.”

 

Photo by Marc Nozell used under a Creative Commons license

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List of Obamacare Taxes Repealed

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Posted by John Kartch on Thursday, May 4th, 2017, 6:11 PM PERMALINK

 

The American Health Care Act (HR 1628) passed by the House today reduces taxes on the American people by over $1 trillion. The bill abolishes the following taxes imposed by Obama and the Democrat party in 2010 as part of Obamacare:

-Abolishes the Obamacare Individual Mandate Tax which hits 8 million Americans each year.

-Abolishes the Obamacare Employer Mandate Tax. Together with repeal of the Individual Mandate Tax repeal this is a $270 billion tax cut.

-Abolishes Obamacare’s Medicine Cabinet Tax which hits 20 million Americans with Health Savings Accounts and 30 million Americans with Flexible Spending Accounts. This is a $6 billion tax cut.

-Abolishes Obamacare’s Flexible Spending Account tax on 30 million Americans. This is a $20 billion tax cut.

-Abolishes Obamacare’s Chronic Care Tax on 10 million Americans with high out of pocket medical expenses. This is a $126 billion tax cut.

-Abolishes Obamacare’s HSA withdrawal tax. This is a $100 million tax cut.

-Abolishes Obamacare’s 10% excise tax on small businesses with indoor tanning services. This is a $600 million tax cut.

-Abolishes the Obamacare health insurance tax. This is a $145 billion tax cut.

-Abolishes the Obamacare 3.8% surtax on investment income. This is a $172 billion tax cut.

-Abolishes the Obamacare medical device tax. This is a $20 billion tax cut.

-Abolishes the Obamacare tax on prescription medicine. This is a $28 billion tax cut.

-Abolishes the Obamacare tax on retiree prescription drug coverage. This is a $2 billion tax cut.

As a presidential candidate in 2008, Barack Obama had promised repeatedly that he would not raise any tax on any American earning less than $250,000 per year. He broke the promise when he signed Obamacare. With the passage of the House GOP bill, tens of millions of middle income Americans will get tax relief from Obamacare's long list of tax hikes.

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AHCA Toolkit

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Posted by John Kartch on Wednesday, March 22nd, 2017, 1:12 PM PERMALINK

Grover Norquist Letter in Support of AHCA 

ATR Statement in Support of AHCA 

Full List of Obamacare Taxes Repealed

How the AHCA Shrinks Federal Spending 

Grover Norquist Washington Examiner op-ed in support of AHCA: A vote against the House Republican healthcare bill is a vote in favor of Obamacare

Norquist on Fox Business Network: AHCA is One of the Most Conservative Pieces of Legislation DC Has Ever Seen 

ATR: AHCA Abolishes Obamacare Chronic Care Tax on Middle Class

ATR: AHCA Abolishes Obamacare’s Medicine Cabinet Tax

Photo Credit: Jocelyn Wallace 

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Two Charts: How the AHCA Shrinks Federal Spending


Posted by John Kartch on Monday, March 20th, 2017, 3:18 PM PERMALINK


-Under the American Health Care Act, by 2021 federal spending on healthcare as a percentage of GDP is reduced from 6.9% to 6.3%. As time goes by, the spending reduction gets larger. See the first chart, below.

-Under AHCA, by 2027 total federal spending as a percentage of GDP is reduced from 23.4% to 22.4%. See the second chart, below.

"In addition to abolishing Obamacare's taxes, the AHCA reduces the total size of government permanently," said Grover Norquist president of Americans for Tax Reform.

 

Chart by Strategas Research Partners using OMB and CBO data


Chart by Strategas Research Partners using CBO data

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More from Americans for Tax Reform


Grover Norquist to Robert Reich: You were wrong on welfare reform and you are wrong on Obamacare repeal


Posted by John Kartch on Tuesday, March 14th, 2017, 5:36 PM PERMALINK

On CNN Monday night, ATR president Grover Norquist debated Bill Clinton labor secretary Robert Reich. The topic: Obamacare repeal.

Norquist pointed out that the Trump/GOP Obamacare repeal bill cuts taxes by almost $900 billion and cuts spending by $1.2 trillion. Many of Obamacare¹s tax hikes hit millions of Americans hard in the pocketbook.

Norquist ended the segment by reminding Reich: "Robert, you were wrong about Bill Clinton¹s welfare reform. You are wrong again."

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More from Americans for Tax Reform


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