Sunday, July 01, 2012

Obamacare’s 21 New or Higher Taxes for the US economy

The Supreme Court’s upholding of Obamacare will translate to 21 new or higher taxes for the US economy.

Ryan Ellis enumerates them (hat tip Bob Wenzel)

1. Individual Mandate Excise Tax(Jan 2014)

2. Employer Mandate Tax(Jan 2014)

3. Surtax on Investment Income ($123 billion/Jan. 2013)

4. Excise Tax on Comprehensive Health Insurance Plans($32 bil/Jan 2018)

5. Hike in Medicare Payroll Tax($86.8 bil/Jan 2013)

6. Medicine Cabinet Tax($5 bil/Jan 2011)

7. HSA Withdrawal Tax Hike($1.4 bil/Jan 2011)

8. Flexible Spending Account Cap – aka“Special Needs Kids Tax”($13 bil/Jan 2013)

9. Tax on Medical Device Manufacturers($20 bil/Jan 2013)

10. Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI($15.2 bil/Jan 2013)

11. Tax on Indoor Tanning Services($2.7 billion/July 1, 2010)

12. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D($4.5 bil/Jan 2013)

13. Blue Cross/Blue Shield Tax Hike($0.4 bil/Jan 2010)

14. Excise Tax on Charitable Hospitals(Min$/immediate)

15. Tax on Innovator Drug Companies($22.2 bil/Jan 2010)

16. Tax on Health Insurers($60.1 bil/Jan 2014)

17. $500,000 Annual Executive Compensation Limit for Health Insurance Executives($0.6 bil/Jan 2013)

18. Employer Reporting of Insurance on W-2(Min$/Jan 2011)

19. Corporate 1099-MISC Information Reporting($17.1 bil/Jan 2012)

20. “Black liquor” tax hike(Tax hike of $23.6 billion)

21. Codification of the “economic substance doctrine”(Tax hike of $4.5 billion).

Read the explanation or details here

All these will negatively impact corporate profits, business investments, employment and productivity.


Yet all these means more bureaucracy, greater government spending, MORE Fiscal DEFICITS and SURGING DEBTS.

Add Obamacare to the existing welfare, warfare and other growing spending programs, a Greece crisis seems like a destiny.


This means that the US Federal Reserve will only continue to pump massive amounts of money to system into prevent interest rate from rising. An upward trend of interest rates will jeopardize funding for all these social spending programs.

This possibly extrapolates to continuation of the US Federal Reserve as the buyer of last resort.

Put differently, inflationism will function as the lipstick on the pig for these economically unsustainable programs. One would already note that interest on debt already exceeds many spending programs. (charts from Heritage Foundation)

Sometimes you’ve got to wonder: Are these purposely designed to destroy society?

Updated to add: Since the Heritage chart embed didn't work out as I expected, I had to redo the entire post.

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