- Feb 12, 2007
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As RomneyCare needed a bail out by the Feds, who is going to Bail Out the Feds for ObamaCare?
T-A-X-E-S
1.Obamacare will collect more than $500 billion in new taxes and take $575 billion from Medicare over the next ten years.
a. Two new entitlements, plus a big Medicaid expansion, are created to reduce the number of uninsured, at a cost of at least $2.3 trillion- thats TRILLION- over the first ten years of full implementation.
2. With each passing year new taxes will be imposed. As disclosed on the attached chart from the
California Hospital Association:
2011: A 2.5% excise tax is imposed on pharmaceuticals. (This is part of the plan to pay for the
reform law.) This cost which will be in the billions of dollars - will be passed on to health care
providers, primarily hospitals, who already operate with very thin margins, and will be under
great financial pressure to raise their rates to pay for it, with resulting price pressure on health
insurance premiums.
2012: That excise tax increases to 3%.
2013: A separate 2.9% excise tax on medical devices will begin. The same pass-through will take
place, creating the same pressures on providers and on insurance premiums.
2014: An $8 billion fee on health insurance premiums kicks in. Obviously consumers will bear
this tax and their premiums will rise.
Because of all these costs, Obamacare is generally unsustainable. Here is one study that addresses that
issue:
Obamacare: The Real Price Tag is a Moving Target | The Foundry: Conservative Policy News.
3. As is usual for liberal-progressives, the element of coercion is an intrinsic twin to their intentions, and it remains so in Obamacare. Beginning in 2014, everyone will face a penalty if they dont purchase a health policy that meets the governments definition of a minimum essential level of health coverage. The Patient Protection and Affordable Care Act, Public Law 111-148, Section 1501.
a. It will be enforced by the IRS. Obamacare authorizes the hiring of 16,500 additional agents. the Joint Economic Committee and the House Ways & Means Committee minority staff estimates up to 16,500 new IRS personnel will be needed to collect, examine and audit new tax information mandated on families and small businesses in the reconciliation bill being taken up by the U.S. House of Representatives this weekend. ... 16,500 more IRS agents needed to enforce Obamacare | J.P. Freire | Beltway Confidential | Washington Examiner
b. The penalty is either a flat dollar amount ($695 in 2016) , or 2.5% of your income (in 2016), depending on which is higher. From 2017 on it will increase depending on the CPI.
Even with all of these taxes, it will still run at a deficit.