Why The Individual Mandate Is Not A ‘Massive Tax Hike’ On The Middle Class

[Lakhota]

By Travis Waldron

The Supreme Court ruled today that the Affordable Care Act, the comprehensive health care reform package signed by President Obama in 2010, is constitutional. The Court upheld the law’s most controversial provision, the individual mandate, ruling that it is constitutional under the government’s authority to levy and collect taxes.

Republicans have falsely claimed the mandate was the “biggest tax increase ever in American history,” so of course, conservatives immediately jumped on the idea that the individual mandate was a massive tax hike on the middle class, reviving an argument Republicans have made since the law passed more than two years ago:

The mandate can indeed be characterized as a tax, as the Court found. But it is not a massive tax hike on the middle class, much less the biggest tax hike in American history. The tax imposed by the individual mandate amounts to either $695 or 2.5 percent of household income for those who don’t have insurance and are not exempt based on income levels. By comparison, the payroll tax cut extension Republicans repeatedly blocked earlier this year would have added 3.1 percentage points to the tax and cost the average family $1,500 a year.

The mandate, meanwhile, would hit a small amount of Americans — somewhere between 2 and 5 percent — according to a study from the Urban Institute. The number could be even lower depending on the law’s success: in Massachusetts, the only state with an insurance mandate, less than 1 percent of the state’s residents paid the penalty in 2009.

The majority of the Affordable Care Act’s other taxes, such as a payroll tax increase and a tax on high-cost health plans, are aimed at upper-income Americans. In exchange, millions of jobs will be created as new people enter the health care system and millions of people will gain access to affordable, quality insurance that they otherwise would not have. And, as we detailed earlier today, the Court’s decision to uphold the entirety of the law will have significant benefits for the nation’s economy.

More: Why The Individual Mandate Is Not A 'Massive Tax Hike' On The Middle Class | ThinkProgress

NOTE: The above link also contains live source links.

 

[Remodeling Maidiac]

Troll detector is going off again.............

 

[WillowTree]

The biggest damn tax hike in the history of America. Democrats done good today.. vewy good.

 

[Listening]

The article is bullcrap.

Places like Mayo are already dumping Medicare because they are losing money. The only way they make it up is by cutting salaries.

I know far to many young people who have decided not to go to medical school because of this mess. We are already headed for a shortage of doctors because of the AMA,s miscalculations. It is only going to get worse.

You guys just bought us a two-tier medical system.

Great job !

 

[Lakhota]

The biggest damn tax hike in the history of America. Democrats done good today.. vewy good.

Okay, then please provide proof of your claim. I provided proof that it isn't.

 

[Listening]

The biggest damn tax hike in the history of America. Democrats done good today.. vewy good.

Okay, then please provide proof of your claim. I provided proof that it isn't.

That isn't proof dickhead. It is an unsupported article.

The 3.1% payroll cut was for an existing tax. Not a new one. This guy is a spin doctor...and not a very good one.

 

[Jackson]

Q: How much will the “tax” penalty be for going without health insurance?


A: The minimum assessment will be $695 per person (but no more than $2,085 per family) in 2016, when fully phased in. The amount can be higher depending on income. But there are exemptions for low-income persons and others.

Fact Check

Maybe you are in the $2,085 or higher category..

We haven't even addressed the shortage of doctors or rationed care. Those with money can get the best care and of course, Congress is exempted.

 

[HomeInspect]

This November's election just became all about Obamacare. Tell me something. If the government can't force me to eat broccolli, but can tax me if I don't, how is this any different?

 

[Lakhota]

Q: How much will the “tax” penalty be for going without health insurance?


A: The minimum assessment will be $695 per person (but no more than $2,085 per family) in 2016, when fully phased in. The amount can be higher depending on income. But there are exemptions for low-income persons and others.

Fact Check

Link?

 

[WillowTree]

The biggest damn tax hike in the history of America. Democrats done good today.. vewy good.

Okay, then please provide proof of your claim. I provided proof that it isn't.

The Biggest Tax Increase In U.S. History? - Forbes.com

 

[GuyPinestra]

By Travis Waldron

The Supreme Court ruled today that the Affordable Care Act, the comprehensive health care reform package signed by President Obama in 2010, is constitutional. The Court upheld the law’s most controversial provision, the individual mandate, ruling that it is constitutional under the government’s authority to levy and collect taxes.

Republicans have falsely claimed the mandate was the “biggest tax increase ever in American history,” so of course, conservatives immediately jumped on the idea that the individual mandate was a massive tax hike on the middle class, reviving an argument Republicans have made since the law passed more than two years ago:

The mandate can indeed be characterized as a tax, as the Court found. But it is not a massive tax hike on the middle class, much less the biggest tax hike in American history. The tax imposed by the individual mandate amounts to either $695 or 2.5 percent of household income for those who don’t have insurance and are not exempt based on income levels. By comparison, the payroll tax cut extension Republicans repeatedly blocked earlier this year would have added 3.1 percentage points to the tax and cost the average family $1,500 a year.

The mandate, meanwhile, would hit a small amount of Americans — somewhere between 2 and 5 percent — according to a study from the Urban Institute. The number could be even lower depending on the law’s success: in Massachusetts, the only state with an insurance mandate, less than 1 percent of the state’s residents paid the penalty in 2009.

The majority of the Affordable Care Act’s other taxes, such as a payroll tax increase and a tax on high-cost health plans, are aimed at upper-income Americans. In exchange, millions of jobs will be created as new people enter the health care system and millions of people will gain access to affordable, quality insurance that they otherwise would not have. And, as we detailed earlier today, the Court’s decision to uphold the entirety of the law will have significant benefits for the nation’s economy.

More: Why The Individual Mandate Is Not A 'Massive Tax Hike' On The Middle Class | ThinkProgress

NOTE: The above link also contains live source links.

And you don't think those higher payroll taxes will get passed on from the business to the consumer? That would be a first, don't you think?

And aiming significant tax increases at upper-income Americans really reeks of more class warfare, a tactic liberal Democrats have gotten entirely too good at.

 

[Lakhota]

The biggest damn tax hike in the history of America. Democrats done good today.. vewy good.

Okay, then please provide proof of your claim. I provided proof that it isn't.

The Biggest Tax Increase In U.S. History? - Forbes.com

That's funny. Here, read a little about the author of that Forbes article...

Merrill Matthews Jr., Ph.D.

 

[NYcarbineer]

The biggest damn tax hike in the history of America. Democrats done good today.. vewy good.

Okay, then please provide proof of your claim. I provided proof that it isn't.

The Biggest Tax Increase In U.S. History? - Forbes.com

I want to hear how your taxes get raised, you old bat.

Willowtree's revelation today that she's an old hag on Medicare and SS just makes her posts all the more hilarious.

 

[HomeInspect]

By Travis Waldron

The Supreme Court ruled today that the Affordable Care Act, the comprehensive health care reform package signed by President Obama in 2010, is constitutional. The Court upheld the law’s most controversial provision, the individual mandate, ruling that it is constitutional under the government’s authority to levy and collect taxes.

Republicans have falsely claimed the mandate was the “biggest tax increase ever in American history,” so of course, conservatives immediately jumped on the idea that the individual mandate was a massive tax hike on the middle class, reviving an argument Republicans have made since the law passed more than two years ago:

The mandate can indeed be characterized as a tax, as the Court found. But it is not a massive tax hike on the middle class, much less the biggest tax hike in American history. The tax imposed by the individual mandate amounts to either $695 or 2.5 percent of household income for those who don’t have insurance and are not exempt based on income levels. By comparison, the payroll tax cut extension Republicans repeatedly blocked earlier this year would have added 3.1 percentage points to the tax and cost the average family $1,500 a year.

The mandate, meanwhile, would hit a small amount of Americans — somewhere between 2 and 5 percent — according to a study from the Urban Institute. The number could be even lower depending on the law’s success: in Massachusetts, the only state with an insurance mandate, less than 1 percent of the state’s residents paid the penalty in 2009.

The majority of the Affordable Care Act’s other taxes, such as a payroll tax increase and a tax on high-cost health plans, are aimed at upper-income Americans. In exchange, millions of jobs will be created as new people enter the health care system and millions of people will gain access to affordable, quality insurance that they otherwise would not have. And, as we detailed earlier today, the Court’s decision to uphold the entirety of the law will have significant benefits for the nation’s economy.

More: Why The Individual Mandate Is Not A 'Massive Tax Hike' On The Middle Class | ThinkProgress

NOTE: The above link also contains live source links.

And you don't think those higher payroll taxes will get passed on from the business to the consumer? That would be a first, don't you think?

And aiming significant tax increases at upper-income Americans really reeks of more class warfare, a tactic liberal Democrats have gotten entirely too good at.

Exactly ! This might be the biggest job killing bill in American history

 

[WillowTree]

Okay, then please provide proof of your claim. I provided proof that it isn't.

The Biggest Tax Increase In U.S. History? - Forbes.com

That's funny. Here, read a little about the author of that Forbes article...

Merrill Matthews Jr., Ph.D.

you don't like my source? tough shit, it doesn't negate the truth.

 

[WillowTree]

Okay, then please provide proof of your claim. I provided proof that it isn't.

The Biggest Tax Increase In U.S. History? - Forbes.com

I want to hear how your taxes get raised, you old bat.

Willowtree's revelation today that she's an old hag on Medicare and SS just makes her posts all the more hilarious.

and the fact that obamatax steal 500 billion dollars from medicare,, i bet that makes you laugh too. you smelly old fart.

 

[Leweman]

So none of these taxes exist or will exist?



2010 Tax on Innovator Drug Companies: $2.3 billion annual tax on the industry imposed relative to share of sales made that year. $22.2 Billion

2010 Excise Tax on Charitable Hospitals: $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS.

2010 Blue Cross/Blue Shield Tax Hike: The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services. $0.4 Billion

2010 Tax on Indoor Tanning Services: New 10 percent excise tax on Americans using indoor tanning salons. $2.7 Billion

2010 “Black liquor” tax Credit. This is a tax increase on a type of bio-fuel. This substance, a wood-pulping byproduct, is utilized as a biofuel to generate electricity for paper-making companies throughout the U.S $23.6 Billion

2010 Codification of the “economic substance doctrine”. This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed. $4.5 Billion

2011 Medicine Cabinet Tax: Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin). $5 Billion

2011 Employer Reporting of Insurance on W-2: Preamble to taxing health benefits on individual tax returns.

2011 Increase penalty for nonqualified HSA distributions. $1.4 Billion

2011 Annual tax on drug manufacturers / importers. $27 Billion

2012 Corporate 1099-MISC Information Reporting: Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers. $17.1 Billion

2013 Increase In Medicare Payroll Tax (For single employees making over $200,000/year and married employees making over $250,000/year): Payroll Tax currently at 1.45% increases to 2.9%. Self-employed tax is increased to 3.8%. $86.8 Billion

2013 Surtax on Other Investment Income: A new, 3.8 percent surtax on "Other" investment income earned in households making at least $250,000 ($200,000 single). Taxes are increased from 39.6% to 43.4% Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8% surtax does not apply to non-resident aliens. It DOES however, include the sale of your home. $123 Billion

2013 Flexible Spending Account Cap – aka “Special Needs Kids Tax”: Imposes cap of $2500 (Indexed to inflation after 2013) on FSAs (now unlimited). . There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.

There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.

Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. $13 Billion

2013 Tax on Medical Device Manufacturers: Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. Exemptions include items retailing for less than $100. $20 Billion

2013 Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI: Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI; it is waived for 65+ taxpayers in 2013-2016 only. $15.2 Billion

2013 Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D. $4.5 Billion

2013 $500,000 Annual Executive Compensation Limit for Health Insurance Executives. $0.6 Billion

2013 Limit deduction for remuneration to officers, employees, directors, and service providers of certain health insurance providers. $0.6 Billion

2013 Impose fee on insured and self-insured health plans; patient-centered outcomes research trust fund. $2.6 Billion

2014 Individual Health Insurance Mandate:
Starting in 2014, you will be required to obtain qualified health insurance for yourself and any dependants or pay a penalty for every month you are not covered. You are allowed a coverage gap of less than 90 days every year.

The penalty begins in 2014 and phases up to its maximum amount in 2016. You will either have to pay a set dollar amount of $695 per year (adjusted for inflation) or 2.5% of your base household income, whichever is higher. Your base income is defined as any amount over the filing threshold for the applicable tax year.

The penalty is assessed for every person in your house who does not have insurance up to a cap of 300 percent of the set dollar amount. In 2016, this cap would be $2,085. If you are a dependent under 18, your set dollar amount is cut in half.
If you are required to pay a penalty but fail to do so, you will receive a notice from Internal Revenue Service (IRS). If you still fail to pay, the IRS can reduce the amount of your future tax refunds by the amount owed. However, if you fail to pay you will not be subject to criminal penalties and the Secretary cannot file notice of a lien or levy against your property.

$17 Billion

2014 Employer Mandate Tax: If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for every full-time employee. This provision applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). $65 Billion

(Combined individual and employer mandate tax penalty.)

2014 Tax on Health Insurers: Annual tax on the industry imposed relative to health insurance premiums collected that year. The stipulation phases in gradually until 2018, and is fully-imposed on firms with $50 million in profits. $60.1 Billion

2018 Excise Tax on Comprehensive Health Insurance Plans: New 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions a higher threshold exists: ($11,500 single/$29,450 family). CPI +1 percentage point indexed.

New Taxes In The Healthcare Bill - Business Insider

 

[Lakhota]

FactCheck.org : How Much Is the Obamacare ‘Tax’?

 

[Jackson]

FactCheck.org : How Much Is the Obamacare ‘Tax’?

How Much Is the Obamacare ‘Tax’?

Posted on June 28, 2012





Q: How much will the “tax” penalty be for going without health insurance?


A: The minimum assessment will be $695 per person (but no more than $2,085 per family) in 2016, when fully phased in. The amount can be higher depending on income. But there are exemptions for low-income persons and others.


Just what I posted.

 

[WillowTree]

So none of these taxes exist or will exist?



2010 Tax on Innovator Drug Companies: $2.3 billion annual tax on the industry imposed relative to share of sales made that year. $22.2 Billion

2010 Excise Tax on Charitable Hospitals: $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS.

2010 Blue Cross/Blue Shield Tax Hike: The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services. $0.4 Billion

2010 Tax on Indoor Tanning Services: New 10 percent excise tax on Americans using indoor tanning salons. $2.7 Billion

2010 “Black liquor” tax Credit. This is a tax increase on a type of bio-fuel. This substance, a wood-pulping byproduct, is utilized as a biofuel to generate electricity for paper-making companies throughout the U.S $23.6 Billion

2010 Codification of the “economic substance doctrine”. This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed. $4.5 Billion

2011 Medicine Cabinet Tax: Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin). $5 Billion

2011 Employer Reporting of Insurance on W-2: Preamble to taxing health benefits on individual tax returns.

2011 Increase penalty for nonqualified HSA distributions. $1.4 Billion

2011 Annual tax on drug manufacturers / importers. $27 Billion

2012 Corporate 1099-MISC Information Reporting: Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers. $17.1 Billion

2013 Increase In Medicare Payroll Tax (For single employees making over $200,000/year and married employees making over $250,000/year): Payroll Tax currently at 1.45% increases to 2.9%. Self-employed tax is increased to 3.8%. $86.8 Billion

2013 Surtax on Other Investment Income: A new, 3.8 percent surtax on "Other" investment income earned in households making at least $250,000 ($200,000 single). Taxes are increased from 39.6% to 43.4% Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8% surtax does not apply to non-resident aliens. It DOES however, include the sale of your home. $123 Billion

2013 Flexible Spending Account Cap – aka “Special Needs Kids Tax”: Imposes cap of $2500 (Indexed to inflation after 2013) on FSAs (now unlimited). . There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.

There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.

Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. $13 Billion

2013 Tax on Medical Device Manufacturers: Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. Exemptions include items retailing for less than $100. $20 Billion

2013 Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI: Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI; it is waived for 65+ taxpayers in 2013-2016 only. $15.2 Billion

2013 Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D. $4.5 Billion

2013 $500,000 Annual Executive Compensation Limit for Health Insurance Executives. $0.6 Billion

2013 Limit deduction for remuneration to officers, employees, directors, and service providers of certain health insurance providers. $0.6 Billion

2013 Impose fee on insured and self-insured health plans; patient-centered outcomes research trust fund. $2.6 Billion

2014 Individual Health Insurance Mandate:
Starting in 2014, you will be required to obtain qualified health insurance for yourself and any dependants or pay a penalty for every month you are not covered. You are allowed a coverage gap of less than 90 days every year.

The penalty begins in 2014 and phases up to its maximum amount in 2016. You will either have to pay a set dollar amount of $695 per year (adjusted for inflation) or 2.5% of your base household income, whichever is higher. Your base income is defined as any amount over the filing threshold for the applicable tax year.

The penalty is assessed for every person in your house who does not have insurance up to a cap of 300 percent of the set dollar amount. In 2016, this cap would be $2,085. If you are a dependent under 18, your set dollar amount is cut in half.
If you are required to pay a penalty but fail to do so, you will receive a notice from Internal Revenue Service (IRS). If you still fail to pay, the IRS can reduce the amount of your future tax refunds by the amount owed. However, if you fail to pay you will not be subject to criminal penalties and the Secretary cannot file notice of a lien or levy against your property.

$17 Billion

2014 Employer Mandate Tax: If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for every full-time employee. This provision applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). $65 Billion

(Combined individual and employer mandate tax penalty.)

2014 Tax on Health Insurers: Annual tax on the industry imposed relative to health insurance premiums collected that year. The stipulation phases in gradually until 2018, and is fully-imposed on firms with $50 million in profits. $60.1 Billion

2018 Excise Tax on Comprehensive Health Insurance Plans: New 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions a higher threshold exists: ($11,500 single/$29,450 family). CPI +1 percentage point indexed.

New Taxes In The Healthcare Bill - Business Insider

FactCheck.org : How Much Is the Obamacare ‘Tax’?

Take your blinders off skid mark.