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Welcome To The Biggest Tax Increase In U.S. History
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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.)
Posted by Pleasanton Mom
a resident of Birdland
on Mar 15, 2010 at 7:42 am
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?
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 equalwhether 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 eachis 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.