Saturday, October 19, 2013

How Obamacare Screws the Working Class…Hard

Obamacare is set to sink into the flesh of the American entitlement system not unlike a bear's claws sink into the flesh of its prey. . .

Here are some of the new taxes you're going to have to pay to pay for Obamacare:

▪ A 3.8% surtax on "investment income"( dividends, interest, rent, capital gains, annuities, house sales, partnerships, etc.) when your adjusted gross income is more than $200,000, $250,000 for joint-filers. What is "investment income?" (WSJ)

▪ A 0.9% surtax on Medicare taxes for those making $200,000 or more, $250,000 joint. (WSJ)

▪ Flexible Spending Account contributions will be capped at $2,500. Currently, there is no tax-related limit on how much you can set aside pre-tax to pay for medical expenses. (

▪ The itemized-deduction hurdle for medical expenses is going up to 10% of adjusted gross income. (

▪ The penalty on non-medical withdrawals from Healthcare Savings Accounts is now 20% instead of 10%. (

▪ A tax of 10% on indoor tanning services. This has been in place for two years, since the summer of 2010. (

▪ A 40% tax on "Cadillac Health Care Plans" starting in 2018.Those whose employers pay for all or most of comprehensive healthcare plans (costing $10,200 for an individual or $27,500 for families) will have to pay a 40% tax on the amount their employer pays. (

▪ A "Medicine Cabinet Tax" that eliminates the ability to pay for over-the-counter medicines from a pre-tax Flexible Spending Account. (

▪ A "penalty" tax for those who don't buy health insurance.

▪ A 2.3% excise tax on medical devices costing more than $100. (

So those are some of the new taxes you'll be paying that will help pay for Obamacare...

Note that these taxes are both "progressive" (aimed at rich people) and "regressive" (aimed at the middle class and poor people).

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