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Welcome To The Biggest Tax Increase In U.S. History

Original post made by Pleasanton Mom, Birdland, on Mar 12, 2010

Considering the fact that the U.S. economy is already on the verge of economic collapse, the last thing we need is a massive tax increase. But that is exactly what we are about to get.

The Health Care Reform Bill: Welcome To The Biggest Tax Increase In U.S. History

Michael Snyder | Mar. 12, 2010

Will the health care reform bill that the Democrats are trying to figure out a way to ram through Congress end up being the biggest tax increase in U.S. history? Unfortunately, a close reading of the bill leads to the inescapable conclusion that it will be. You see, the crafters of this legislation were smart. They realized that if they included one huge tax increase in the health care bill it would make headlines all over the country, so they chopped up the taxes into a bunch of smaller pieces in order to make them easier to swallow. In fact, one review of the Senate version of the health care bill identified at least 19 tax increases. When you put all of the tax increases together they add up to the biggest tax increase in the history of the United States. Considering the fact that the U.S. economy is already on the verge of economic collapse, the last thing that the American people need is a massive tax increase. But that is exactly what they are about to get.

So let's take a closer look at some of these taxes....

*In Section 5000(A) of the Senate version of the bill (which can be found here), there is a requirement for all Americans to purchase health insurance. Those who do not obtain health coverage will be hit with an annual tax penalty of $750.

*Barack Obama is trying to sneak a large Medicare tax increase for wealthy Americans into the final version of the health care bill. Under Obama's proposal, individuals who earn more than $200,000 and couples who earn over $250,000 would pay an additional 2.9% surtax on unearned income from interest, dividends, annuities, royalties and rents. Up until now, employers and employees have each contributed 1.45% of each paycheck to Medicare. But if Obama's proposal makes it into the final bill, wealthy Americans will see their Medicare taxes absolutely skyrocket.

*In Section 9008 of the Senate version of the health care bill, a $2.3 billion excise tax would be imposed on the pharmaceutical industry. This tax would not be based on income. It would solely be based on market share. So even if a company was losing hundreds of millions of dollars it would still have to pay.

*Section 9009 of the Senate version of the health care bill imposes an "annual fee" on medical device manufacturers and importers. Once again, this $2 billion "excise tax" would be based on market share and not on income.

*Section 9010 of the Senate version of the health care bill would also impose an "annual fee" on health insurance providers. This $6.7 billion tax would also be allocated based on market share.

So how much of these new taxes on health insurance companies, drugmakers and medical device manufacturers do you think will be passed on to consumers?

Anyone want to take a guess?

Just because a particular tax increase is not directed at you does not mean that it won't take money out of your pocket.

Let's look at some more (yes, there are more) of the tax increases....

*Section 9001 of the Senate version of the health care bill contains an excise tax on "Cadillac" health plans. In other words, if you have provided your family with the very best in health coverage you get to be taxed extra. This tax is particularly harsh. Section 9001 imposes a 40 percent tax on the portion of insurance premiums exceeding $8,500 a year for individuals and $23,000 a year for family plans. In order to hide the tax, it will be imposed on the health insurance companies who issue the policies. But do you think that they will not pass that cost on to their customers?

So now the American people will be highly penalized for getting really good health care plans.

*Section 9017 of the Senate version of the health care bill imposes an excise tax on elective cosmetic medical procedures. Any voluntary cosmetic procedures will now be subjected to a 5 percent tax. All of those boob jobs are about to get a lot more expensive.

*The House version of the health care bill would impose a 5.4 percent income tax increase on individuals making more than $500,000 and on couples making more than $1 million.

So if you are living the American Dream you are about to pay a lot more for it if the House version of the health care bill gets adopted.

Let's break this down a little bit.

Currently, the top income tax rate in the United States is 35 percent.

If existing Bush tax cuts expire in 2011 as Barack Obama wants them to, the top tax rate will go back up to 39.6 percent.

But this new "health care tax" would jack things up even higher.

Another 5.4 percent would take the highest tax rate in America to 45 percent. That is before any state, local or property taxes are even paid.

Pretty soon it won't even be worth it to work hard in America anymore.

But that is not the end of the tax increases.

A PricewaterhouseCoopers' analysis for America's Health Insurance Plans found that family health insurance premiums would be approximately $4,000 a year higher if the health care reform bill is passed.

Can you afford to pay over $300 a month more for health insurance for your family?

Are you starting to get the idea?

This health care reform bill will be an absolute financial disaster for America. But considering the fact that the Senate version of the bill is 2409 pages long, hardly anyone will ever take the time to read the whole thing.

And yes, the Democrats are likely to tweak things a little more as they try to figure out how to sneak a final version through, but there is now one thing that seems virtually certain.

This is going to be the biggest tax increase in U.S. history.


(The article was published on The Economic Collapse Blog.)

Comments (22)

 +   Like this comment
Posted by Wayne
a resident of Dublin
on Mar 12, 2010 at 11:22 am

Republicans stuck literally on fear. Turns out Karl Rover just a one trick pony.


 +   Like this comment
Posted by Rat Turd
a resident of Another Pleasanton neighborhood
on Mar 12, 2010 at 11:33 am

Pleasanton Mom,

I believe the article is spot on and is quite scary to say the least. This bill has to be stopped and we/they need to start from scratch (all elected members) and come up with something which makes sense. This bill as it currently stands is just a mess and I would be willing to bet that they way the are trying to pass it would not even hold up in court. No one argues that healthcare reform needs to be done but I think most logical thinkers would agree that this bill is not the way to do it.


 +   Like this comment
Posted by Republican Dublin resident
a resident of Dublin
on Mar 12, 2010 at 12:46 pm

"$300 a month more for health insurance" - this is a drop in the bucket when evaluating how much you will be paying soon without some kind of reform.

If this bill is the best we can do, then it needs to move forward. The republican party had plenty of years to get this growing problem under control and has really not done a thing. Rates have been going up by something like 10%/year the past decade.

If this bill doesn't work, they can always change it. Personally, I can think of better ways to fix healthcare by modeling it after working systems in other countries, but it would be very unpopular to enact that change, even though long term it would be better for our country.

Something should be done. As a side note, if nothing is done, I'm fine with having a shift of money from the non health care employed to the "health care industry" as you can't put a price on health. I'm not talking about insurance companies specifically but their executives will be one of the beneficiaries along with many other types, pharmaceutical companies, doctors, nurses, etc.


 +   Like this comment
Posted by Pleasanton Mom
a resident of Birdland
on Mar 12, 2010 at 12:47 pm

Rat Turd,

It is 2000 pages of Tyranny.

May there be sufficient numbers of decent people in this Congress who have the wisdom and courage to stop Obama's Marxist destruction of the United States.

We're living a nightmare. November cannot come fast enough.


 +   Like this comment
Posted by Really?
a resident of Another Pleasanton neighborhood
on Mar 12, 2010 at 1:39 pm

Pleasanton Mom must have a lot of time on her hands. Plus having the following repeated-ad nauseum-phrases programmed into her F1 and F2 function keys:
"stop Obama's Marxist destruction of the United States."

"We're living a nightmare. November cannot come fast enough."


 +   Like this comment
Posted by Nothing New
a resident of Another Pleasanton neighborhood
on Mar 12, 2010 at 1:44 pm

Nothing new, it's their mantra:
Web Link


 +   Like this comment
Posted by Pleasanton Mom
a resident of Birdland
on Mar 12, 2010 at 2:10 pm

Really?

Thanks for your thoughts and assumptions about me.

Do you have anything to say about the 19 new Tax increases included in the Government takeover of our healthcare system - effectively the biggest tax increase in our history?


 +   Like this comment
Posted by Cholo
a resident of Livermore
on Mar 12, 2010 at 2:39 pm

Web Link Republican scare tactics to get $$$$$$ from members of TEA PARTY!

BUSTED!


 +   Like this comment
Posted by Rat Turd
a resident of Another Pleasanton neighborhood
on Mar 12, 2010 at 3:09 pm

Pleasanton Mom,

yes I believe you are correct and November cannot come quickly enough for sure. Have you seen the recent polls? Amazingly low I would say this early in the game. I suspect we are going to have a major shift in leadership in this country and I travel quite a bit and hear it everywhere. Pretty hard to draw any conclusions from California because California rarely represents the views of the rest of the country. As an example I saw someplace where Obama's nationwide job approval was 43% but in California it was 55%. If I were already in office I would start getting my resume polished up.


 +   Like this comment
Posted by Keeps piling on
a resident of Another Pleasanton neighborhood
on Mar 12, 2010 at 3:21 pm

Today Obama's also working on getting medical coverage for illegals....then all of mexico will migrat here ! ! ! ! ! ! !
We knew he was going to grant amnesty in time to register them all for voting in Nov....that's always been his REelection plan. There is just no end to our losses...as we watch the US disolve before our kids even get to know it.


 +   Like this comment
Posted by Cholo
a resident of Livermore
on Mar 12, 2010 at 4:08 pm

Lighten up keeps...how come you don't want to share the USA with residents that need to stay healthy in order to work and keep the economy afloat?

I was under the impression that you, of all people, would be happy that your fellow residents are healthy & happy!


 +   Like this comment
Posted by Pleasanton Mom
a resident of Birdland
on Mar 12, 2010 at 4:31 pm

This is an article published in the New York Post...

"The overriding goal of this reform is to turn health insurance into a more "egalitarian" benefit that's the same for everyone, regardless of income, personal preference or need. So rules written under President Obama to implement the Obama plan are a sure bet to intentionally curtail anyone's ability to wrap around this national coverage with a supplemental policy or to contract privately with doctors to pay your way out of its limitations.

This is exactly what the bureaucracy's done with Medicare. Doctors accepting Medicare can't contract privately with Medicare patients to bill for services that Medicare doesn't cover. Nor can patients buy added coverage to help plug Medicare's gaps. (The "Medigap" that many seniors now buy are tightly regulated by the government to limit how much they expand on Medicare's basic benefits; they mostly just help defray co-pays.)

In short, beneficiaries are trapped inside the Medicare insurance scheme, just as they'll soon be trapped inside the ObamaCare exchanges. Doctors can't offer benefits not covered by the government plans, and patients can't buy extra insurance to make up for many gaps."

It's Tyranny - a staggering loss of freedom.


Web Link



 +   Like this comment
Posted by Stacey
a resident of Amberwood/Wood Meadows
on Mar 12, 2010 at 4:50 pm

Stacey is a registered user.

Everybody gets old and sick. Even you, Pleasanton Mom.


 +   Like this comment
Posted by Rat Turd
a resident of Another Pleasanton neighborhood
on Mar 12, 2010 at 5:00 pm

Sure hope Obambi and the libs have thought this wreck-in-silly-nation ploy through and are sure they want to set a precedent and use it for non monetary or budgetary bills because they should be careful what they ask for because after they open the door it will be used from now on for anything that the party in power does not want discussed in an open foruum. They need to remember that they will not be the party in power and it will be used against them more than once!


 +   Like this comment
Posted by Pleasanton Mom
a resident of Birdland
on Mar 12, 2010 at 5:05 pm

Stacey,

I know. I am a breast cancer survivor. I just want our healthcare system to remain free, free from government bureaucrats (whose agenda is completely different from a doctor) telling me I'm not worth saving. The doctor will not have a say. Obamacare limits care for people over 40, and imposes even more severe restrictions for people over 70 - just like the British Healthcare system that it is based on.

I still have both my Grandparents, they are 85 and 87, still so alive and so important to us and to all their great-grandchildren. Obamacare will deny their healthcare until they die. We have so much to lose under Obamacare.

Can you imagine how devastating it will be to have the Government interfere with your medical treatment options? That's not America. That's Cuba, or Russia.


 +   Like this comment
Posted by Momma
a resident of Downtown
on Mar 12, 2010 at 5:23 pm

Pleasanton Mom,

You copy and paste, right wing
patriot Radical P-Town Tea Party Rhetoric is getting SO old and most intelligent people don't have the "bandwidth" top read this stuff anyways.

"*Barack Obama is trying to sneak a large Medicare tax increase for wealthy Americans into the final version of the health care bill. Under Obama's proposal, individuals who earn more than $200,000 and couples who earn over $250,000 would pay an additional 2.9% surtax on unearned income from interest, dividends, annuities, royalties and rents. Up until now, employers and employees have each contributed 1.45% of each paycheck to Medicare. But if Obama's proposal makes it into the final bill, wealthy Americans will see their Medicare taxes absolutely skyrocket."

First off, BOTH the Senate and House Bills ARE NOT FINAL, so quoting what if scare tactics fro over a year is a WASTE of time you could be using for real solutions on YOUR part.

Where were you RADICAL in regard to TAX monies when we were LIED to as a Country over invading Iraq, a Country that had NOTHING to do with 911? This really has been the HUGE WASTE of our TAX Dollars and our Countries DEMISE!

BUT, NOI most of the people who think like you PROUDLY support WARS , r rather INVASIONS in which we SLAUGHYTER innocent woman in children in the name of "our freedoms"!!!

Wake UP and smell the Coffee. Investigate. Go on to Middle Ease Web sites, look at Iraqi College level students blogs! Get there REAL scoop and stop consuming POOP!

Thinking here:


"Barack Obama is trying to sneak a large Medicare tax increase for wealthy Americans into the final version of the health care bill. Under Obama's proposal, individuals who earn more than $200,000 and couples who earn over $250,000 would pay an additional 2.9% surtax on unearned income from interest, dividends, annuities, royalties and rents. Up until now, employers and employees have each contributed 1.45% of each paycheck to Medicare. But if Obama's proposal makes it into the final bill, wealthy Americans will see their Medicare taxes absolutely skyrocket."


Would that be such a travesty that a couple making over 220k was dinged just a bit to help OTHERS? A TON of these people give this money to the BIGGEST Business of all, TAX FREE Christian Churches!
Now let's examine the accountability of some of these holly centers, such as the BOG churck on Hopyard! O.K.?? ;-)

DUH!

Too little Too late Tea Party! "Christians" Really? Radical RIGHT'S ALWAYS NEEDING to be RIGHT at ANY cost, even at the slaughter of innocent woman and children! "Ding GOD'S "work" in the Middle East? O.KL. Bush and Palin and the rest of you people!

Double standard in the most profound way!








 +   Like this comment
Posted by Really
a resident of Another Pleasanton neighborhood
on Mar 12, 2010 at 6:03 pm

To Pleasanton Mom:

I am truly glad to hear that you are a breast cancer survivor and I wish you continued good health in the future.

But, having experienced a major illness, I would hope that you would be somewhat sympathetic to others in the same situation.

Do you know other breast cancer survivors who have lost their jobs (or whose spouses have lost their jobs) and have had to pay $400-$800/month *per person* COBRA premiums in order to keep seeing their doctors and ensure their remission is on track? I do. And then, once the COBRA time limit runs out, they then have to apply for insurance. What happens then? The very same company to which they were paying the outrageous $800/month premiums to will deny them coverage, based on their pre-existing condition, *even if they did not have a single treatment or doctor visit in that year*. So they go to apply to another health carrier... same story.

This is not fiction, this is the hard cold reality of what the health insurance companies can do and are doing right now.

If this were to happen to you, what would you do?

This does not only happen in the case of major illness, mind you.A story from my own family: my husband and I are both still employed, thank god, even though our salaries have both been cut by almost 10% in the last year. We have good health insurance for our family through our employers. Yet when our son graduated from college, our insurance no longer covered him. He had a part-time job that did not offer insurance, so until he found a full-time job, we used the expensive COBRA to cover him through Kaiser. During that time, his car was broadsided by a reckless driver and totaled. He was experiencing some back pain due to the impact, so went to the doctor and was prescribed a muscle relaxant for two weeks, had an Xray, and when he went for a follow-up visit, the doctor prescribed a month of physical therapy. Things cleared up and he was fine, and did not have to go back to the doctor for the rest of the year, 10 months. When his COBRA time ran out, he applied to Kaiser for individual health coverage. They denied him, based on that one incident. He applied to HealthNet, same story. No one would insure him because of that, so until 18 months had passed since he had last had physical therapy because someone else crashed into his car, he had no health coverage and we lived with the fear that something would happen to him and we would be bankrupted paying any hospital bills.

The proposed health care reform is going to address cases like this.

In addition, there is nothing in the proposed health care that will cause your grandparents to be denied care, and you do know that. If you deny this is nothing more than a red-flag scare tactic on the part of those opposed to any health care reform, please show the evidence.


 +   Like this comment
Posted by frank
a resident of Pleasanton Heights
on Mar 12, 2010 at 6:48 pm

more cut and paste from the person who wants you to think it is from a pleasanton mom.

breast cancer survivor: wait until a job loss causes loss of the group plan.... good luck on getting an individual plan!

elder parents in their 80s: good thing the single payer government run plan called medicare covers them! ideologues never address this issue of the health insurance for the elderly and explain how the "free market" would somehow provide anything for them.


 +   Like this comment
Posted by Cholo
a resident of Livermore
on Mar 12, 2010 at 6:52 pm

I have a suspicion that the person that likes to cut 'n paste so many articles is President Obama.

I been had this suspicion for quite some time, it was confirmed by a reliable source at the berry patch this afternoon.

BUSTED!


 +   Like this comment
Posted by Really
a resident of Another Pleasanton neighborhood
on Mar 14, 2010 at 7:17 pm

Just curious about whether Pleasanton Mom had thought about the reply above re. pre-existing conditions and the proposed health care reform bill.


 +   Like this comment
Posted by Jinkies!
a resident of Old Towne
on Mar 14, 2010 at 7:24 pm

Detecting there was something fishy going on, some amateur sleuths went and unmasked Pleasanton Mom to reveal--zoiks!--Karl Rove!

When asked by the sheriff why he was spreading falsehoods about health care reform on online forums, Pleasanton Mom merely growled, "It would have worked, too, if it hadn't been for those meddling kids!"


 +   Like this comment
Posted by Pleasanton Mom
a resident of Birdland
on Mar 15, 2010 at 7:42 am

Really,

I agree with you that we need some reforms. However, the Government Takeover of our healthcare industry is not what you think it will be. They have to lie to trick you into it - hence all the backroom political bribing (of their own people!) that is going on.

We absolutely need insurance reforms - in particular we need a market for those with preexisting conditions to be able to buy health insurance policies at affordable rates, just like people with bad driving records can buy auto insurance. It would be great to be able to buy health insurance in the free market that are not necessarily tied to a job.

One way to do this is to open the sale of insurance policies across state lines to increase the number of companies competing - this would bring down cost of premiums to some degree.

But the real cost of premiums are based on:
- The cost of medical care itself, the cost of high-tech medical equipment, medicines, etc.
- The cost of building in legal protections at every turn
- Government mandates and taxes

All of this is why Health Insurance premiums costs so much. It is NOT because insurance companies are greedy and evil, as Obama says. Obama has to have an enemy, a scapegoat, to order to achieve his bad-for-America agenda. The insurance companies are not hugely profitable. They spend 80-85% of their income from premiums on paying claims, and the rest goes to their overhead costs (their employees) and to profit. Their profit margin is only in the 2% to 4% range. Insurance companies are only the 23rd "most profitable businesses in America". Food industry is much more profitable. Are they greedy and evil too? This article will explain more: Web Link

A much needed reform involves capping the lawyers, so doctors wouldn't have to run so many expensive tests. The tests are not only expensive for the insurance company to pay for, but dangerous for the patient as well. All because of the threat of lawsuits.

While we need some reforms, WE DO NOT NEED A GOVERNMENT TAKEOVER OF OUR HEALTHCARE INDUSTRY.

Their plan is designed to kill the private insurance market, thereby destroying the private property of 80% of the U.S. population. An insurance contract is private property. It is a private business arrangement between an individual and a company which the individual purchases as a means of mitigating financial risk. For this Government to drive my insurance company out of business, and force me into their death-trap Budget-grade HMO based on rationing and denials of care, with limitations for people over 40, and severe limitations for people over 70 is nothing short of sinister. It is Tyranny. It is NOT reform! It's NOT about healthcare - it is a calcuated raw political power grab of 1/6th of the U.S. Economy.

You have to understand the agenda, motives, and character of Marxists to see clearly what is happening. WHY are they not just covering the 10 million people who can't afford insurance policies? Wouldn't that cost the taxpayers billions and billions less?

Frank,

When Medicare was written into law back in 1965, there was specific protective language that prevented Government bureaucrats from interferring directly in medical decisions. Docs have been allowed to provide treatment as they see fit, without review and approval of a Government panel. This is why people are generally happy with their medicare. BUT in the Government Takeover of our healthcare, the Marxists have specifically removed that protective language. Doctors will be constricted to only what the Government panel says they can do, and will be subject to fines if they provide more care than the Government says you're worth.

Ezekiel Emanuel (brother of White House Chief of Staff Rahm Emanuel) has already been appointed to two key positions: health-policy adviser at the Office of Management and Budget and a member of the Federal Council on Comparative Effectiveness Research (this is the Death Panel). He blames the Hippocratic Oath for the 'overuse' of medical care. How twisted is that! He part of a school of thought that redefines a physician's duty, insisting that it includes working for the greater good of society instead of focusing only on a patient's needs.

As Emanuel wrote in the Feb. 27, 2008, issue of the Journal of the American Medical Association (JAMA): "Vague promises of savings from cutting waste, enhancing prevention and wellness, installing electronic medical records and improving quality of care are merely 'lipstick' cost control, more for show and public relations than for true change. True reform, he argues, must include redefining doctors' ethical obligations."

In numerous writings, Dr. Emanuel chastises physicians for thinking only about their own patient's needs. He describes it as an intractable problem: "Patients were to receive whatever services they needed, regardless of its cost. Reasoning based on cost has been strenuously resisted; it violated the Hippocratic Oath, was associated with rationing, and derided as putting a price on life. . . . Indeed, many physicians were willing to lie to get patients what they needed from insurance companies than were trying to hold down costs." (JAMA, May 16, 2007).

Of course, patients hope their doctors will have that single-minded devotion.

"However, other things are rarely equal—whether to save one 20-year-old, who might live another 60 years, if saved, or three 70-year-olds, who could only live for another 10 years each—is unclear." In fact, Dr. Emanuel makes a clear choice: "When implemented, the complete lives system produces a priority curve on which individuals aged roughly 15 and 40 years get the most substantial chance, whereas the youngest and oldest people get changes that are attenuated."

Dr. Emanuel concedes that his plan appears to discriminate against older people, but he explains: "Unlike allocation by sex or race, allocation by age is not invidious discrimination. . . . Treating 65 year olds differently because of stereotypes or falsehoods would be ageist; treating them differently because they have already had more life-years is not."

Dr. Emanuel has fought for a government takeover of health care for over a decade. In 1993, he urged that President Bill Clinton impose a wage and price freeze on health care to force parties to the table. "The desire to be rid of the freeze will do much to concentrate the mind," he wrote with another author in a Feb. 8, 1993, Washington Post op-ed. Now he recommends arm-twisting Chicago style. "Every favor to a constituency should be linked to support for the health-care reform agenda," he wrote last Nov. 16 in the Health Care Watch Blog. "If the automakers want a bailout, then they and their suppliers have to agree to support and lobby for the administration's health-reform effort."

This guy is terrifying! Understanding what Marxism is makes the whole Government Takeover of Healthcare terrifying!

Marxism is in direct opposition to American principles of freedom. That truth is what I filter everything they say, and everything they do, through. They are NOT operating in your best interests. They are laughing at you (not "you" literally). They are laughing at our Constitution. They mean you harm. This is NOT your father's Democrat Party anymore.









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