Though the House Democrat health care bill blatantly violates President Obama’s central campaign tax pledge, Obama has yet to repudiate the bill. The following tax increases will directly hit Americans making less than $250,000 per year:
  • a tax on individuals failing to sign up for health care equal to the lesser of 2.5% of adjusted gross income (AGI) or the average individual premium amount.  There is no income floor on this, so this would hit any uninsured American of any income
  • a tax on employers for not providing a health care plan equal to 8% of payroll.  This becomes 0, 4, or 6 percent of payroll as payday totals dip below $400,000 annually.  This will even hit the smallest of small businesses, those making profits of less than $250,000
  • codification of the "economic substance doctrine," whereby taxpayers would not be able to engage in legal tax avoidance techniques without demonstrating a bona fide business purpose.  This would apply not only to large companies and wealthy individuals, but any taxpayer of any income who engages in a legal tax avoidance technique
These are only the tax increases which would fall directly on Americans making less than $250,000.  This doesn’t account for the other tax increases in the bill on small businesses which will kill jobs and slash wages.

On Monday, two days before the introduction of the bill, Obama said: “I promised that Americans making $250,000 a year or less would not pay more in taxes. These are promises that we’re keeping as reform moves forward.”

On Wednesday, when asked for a flat answer as to whether Obama supported the surtaxes in the House bill, White House spokesman Robert Gibbs would only say “It’s a process that we’re watching.”