During President Trump’s first joint address to Congress he will discuss his plan to fix much of the damage caused by his predecessor’s policies. During the early months of Obama’s presidency, the American people heard many promises that, to say the least, were never followed through. When Obama was making his first joint address to Congress ATR compiled the top five false claims made by the newly elected president. Most notably, Obama promised that no American family making less than $250,000 would see any form of tax increase.
What Obama promised: “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.”
What actually happened: Obamacare imposed 20 new or higher tax hikes, many of which directly hit low and middle income Americans. It implemented taxes such as the medicine cabinet tax that has caused millions of Americans to be unable to use their pre-tax Flexible Spending Account or Health Savings Accounts to purchase over the counter medicine. Over ten years this tax has cost FSA and HSA users $6.7 billion.
10 million Americans have also felt the burden of the Obamacare chronic care tax. Prior to Obamacare Americans with high medical expenses were allowed an income tax deduction if their expenses exceeded 7.5 percent of their adjusted gross income. This tax has increased the threshold from 7.5 percent to 10 percent, making it harder for families to receive this deduction. This tax will cost Americans a whopping $40 billion over ten years.
Obamacare also famously imposed the individual mandate tax ranging from a minimum of $695 for an individual to $2,085 for a larger household.
These are only some of the tax hikes that all Americans have been burdened with since Obamacare has taken effect. All 20 tax increases have culminated in a $1 trillion net tax increase on the American people. A far cry from Obama’s adamant assurance that no American family outside of the top 2 percent would feel the effects of a tax increase.
You can read the full list of Obamacare tax hikes here.