Welcome to ObamaCare Part XII: One of the largest tax increases in history.
By: Nicole Kaeding
Yesterday, the Supreme Court upheld the constitutionality of the President’s health care law. The Court did agree that the individual mandate was a violation of the Constitution’s Commerce Clause, but the Court also ruled that the mandate was authorized under Congress’ taxing power.
Instead of an Individual Mandate Penalty, formally known by the Orwellian-sounding name of “shared responsibility payment,” Americans will now be subject to the Individual Mandate Tax. By combining the mandate tax with the nearly 20 other tax increases, this monstrosity of a law will increase taxes by $500 billion over the next ten years, hurting hard-working Americans. This is now one of the largest tax increases in American history.
What taxes are included in the law?
• Individual Mandate Tax:
Individuals who fail to purchase health insurance will pay a tax starting in 2014. According to the Congressional Budget Office, this tax will hit 4 million Americans and collect $4 billion in revenue in 2016. Individuals will pay the greater of $695 or 2.5% of household income.
• Employer Mandate Tax:
Employers with more than 50 employees who fail to provide health insurance will pay a $2,000 per employee tax. Employers whose insurance choices don’t meet the demands of health care bureaucrats in Washington, D.C. will pay up to $3,000 per employee. To make matters worse, the Internal Revenue Service is actually expanding the number of businesses subject to this $3,000 tax—well outside of the framework created by the President’s health care law.
• Medical Device Tax:
Starting in 2013, this provision imposes a 2.3% excise tax on all medical devices sold in the United States. According to one study, this tax will cost more 14,500 jobs and hurt innovation.
This is just a sampling of the tax increases slated to hit over the next several years. The law includes many more increases.
And to make matters worse, these tax increases are on top of the more than $470 billion in tax increases already scheduled for next year.
As Americans for Prosperity has said all along, this law spends too much, taxes too much and hurts American health care by putting Washington, D.C. between patients and doctors.
Welcome to ObamaCare.
Check out previous posts in the “Welcome to ObamaCare” series by clicking below:
- Part I- Welcome to ObamaCare
- Part II-Obama Taxing Benefits Costs Companies Millions
- Part III-CMS Finally Admits ObamaCare “Cost Savings” are Phony
- Part IV-Can You Really “Keep Your Plan” If You Like It?
- Part V-Businesses Feeling the Impact, Asking for Waivers
- Part VI-Proposed Regulations Exchange a Good Idea for a Bad One
- Part VII – Acting up in CLASS
- Part VIII – Don’t Let a Simple Thing Like Funding Stop You
- Part IX-Exchange Flexibility? What Flexibility?
- Part X- You Know What We Meant
- Part XI- HHS Spends Wildly