The Liar’s Tax

By Alan Caruba – The most singular aspect of Obamacare is the way Democrats, from the President on down, consistently lied about the fact that it was a tax. Interviewed by George Stephanopolos on ABC News, September 2009, Obama was asked if he rejected the criticism that it was a tax increase. “I absolutely reject that notion,” was his reply.

No need to quote the others. They all lied. It took the Supreme Court and, in particular, Chief Justice Roberts, to call Obamacare a tax in the process of eliminating the Commerce Clause of the Constitution as a justification for imposing this burden on Americans.

As CNBC’s Larry Kudlow was quick to note, “Twenty new or higher taxes across the board are bad for economic growth, bad for job hiring, bad for investors, and bad for families,” adding that when “you tax something more, you get less of it.”

Most Americans have been repeatedly told that Obamacare would ensure more care for more people, but the fact is, with or without health insurance, Americans receive health care, even if the hospital emergency room is their last resort, even if they are homeless, and even if they have no way to pay for it.

The multi-millionaire former Speaker of the House, Nancy Pelosi, who told Americans that we would have to wait to know what was in Obamacare until after it was passed, reacted to the Supreme Court decision saying, “Call it what you will.” That is the equivalent of “Let them eat cake”, Marie Antoinette’s famed statement before the enraged citizens of France separated her head from her body.

Obamacare just became the single most important element of the November 6th national elections, followed by the economy. Both stink! Both are the direct result of Obama’s declared intention to “fundamentally transform America.” If he had even a schoolchild’s grasp of American history, he would know that Americans hate taxes. They declared their independence from England over the issue of taxation without representation.

What will emerge in the months between now and the elections is the fact that the Congressional Budget Office has projected that the implementation of Obamacare will cost $1.76 trillion over a decade, an increase of $820 billion over the initial estimate when it was first signed into law. A nation already $17 trillion in debt can hardly welcome such news, nor absorb such costs.

For most Americans, though, the realization that Obamacare contains twenty-one new taxes will likely tip the scales in November to the Republican candidate, Mitt Romney, who has promised to begin the repeal of the law the first day he takes office. Yes, it is an irony that he introduced Romneycare in Massachusetts when he was Governor there, but that is not going to affect the outcome of the election.

Among the many new taxes buried in the 2000-plus pages of Obamacare, there’s a 2.3% excise tax on U.S. sales of medical devices that observers believe would prove to be a $20 billion blow to an industry that employs an estimated 400,000.

There’s a 3.6% surtax on investment income from capital gains and dividends on those earning more than $250,000.

Obamacare imposes a $50,000 excise tax on charitable hospitals that fail to meet new “community health assessment needs”, whatever they are.

There’s a $2.6 billion-a-year tax on drug companies. A 10% excise tax on indoor tanning salons. An $87 billion hike in Medicare payroll taxes for employees, as well as the self-employed.

Between now and November voters are going to be reminded that Obama promised to fix the economy and then spent the first two years getting Obamacare through Congress. No Republican voted for it and, in 2010, voters replaced some sixty representatives and senators with Republicans.

Obama promised to create jobs. Instead he gave us a multi-billion “stimulus” that utterly failed. He promised to cut the deficit in half. And he promised that Americans could keep their current health insurance plans. The Congressional Budget Office estimates that as many as twenty million will lose theirs.

Lies! Lies! Lies!

In a thoughtful analysis of Obamacare, two senior fellows at Stanford University’s Hoover Institution were joined by the dean of the Columbia Business School who concluded that “In upholding the Affordable Care Act, the Supreme Court has allowed the President and Congress to put the country’s health policy on a path that will restrict individual choices, stifle innovation and sharply increase health-care costs.”

As that sinks in, the November elections will end the tyranny of Barack Obama and his minions in Congress. If you wonder what will replace it, just ask Congressman Paul Ryan (R-WIS) who has a plan in place to reform Medicare and Medicaid. If you haven’t heard much about it, you can thank the mainstream media and its slavish adoration of the President.

It is a liar’s tax. It is a liar’s penalty. It is a liar’s plan to further bankrupt the nation.

© Alan Caruba, 2012

FL WON’T IMPLEMENT OPTIONAL PORTIONS OF OBAMACARE

By Dr. Rich Swier – Governor Rick Scott announced that Florida will join other states in opting out of Medicaid expansion and state-run exchanges.

If  the Affordable Care Act (ACA) is not repealed before January 1, 2014, Florida will implement and comply with the required sections of the act.

After reviewing the impact of the Supreme Court ruling that gave Florida the flexibility to legally opt out of implementing one of the costliest provisions of the ACA, commonly known as “ObamaCare,” Governor Rick Scott has decided two major provisions in the law are inconsistent with his mission to grow jobs for Floridians, make sure there is adequate funding for education, and to keep the cost of living as low as possible.

The Affordable Care Act does not require states to take any action before the 2012 general election, and the full law does not take effect until January 1, 2014, provided it is not repealed before that date. Governor Scott, like other state governors, has made it clear that even though Florida will opt out of implementing two major, yet optional, provisions, should there be any legal obligation to implement ObamaCare, the state will follow the law.

Florida will opt out of spending approximately $1.9 billion more taxpayer dollars required to implement a massive entitlement expansion of the Medicaid program. A second provision in ACA gives Governor Scott the flexibility to opt out of building insurance “exchanges.”

“Floridians are interested in jobs and economic growth, a quality education for their children, and keeping the cost of living low,” Governor Scott said. “Neither of these major provisions in ObamaCare will achieve those goals, and since Florida is legally allowed to opt out, that’s the right decision for our citizens.”

Florida already has health care safety net programs for those with the greatest need, including assistance for families with incomes up to 133% of the poverty line, and Florida KidCare to ensure no child goes without health care in Florida.

But even though the federal government has promised to initially pay 100% of the increase in Medicaid payments for the first three years of ObamaCare, the burden increasingly shifts to Florida taxpayers in future years. Medicaid, which has been growing for years at three-and-a-half times as fast as Florida’s general revenue, will soon grow even faster under ObamaCare, and education funding will be adversely impaired if we do not control the growth in Medicaid spending.

Another provision in ACA gives Governor Scott the flexibility to opt out of building insurance “exchanges” that will result in higher insurance premium costs – more money out of the pockets of Florida’s families and businesses. The Congressional Budget Office has said that insurance premiums available on state exchanges will rise another 10-13% under the rules of ObamaCare. In states already operating insurance exchanges set up under similar rules, health care premiums are substantially more expensive.

“The real problem with health care is that costs continue to rise. That’s why I believe we need more choice for patients, more free-market competition, increased accountability for providers, and incentives for personal responsibility,” said Governor Scott. “These are the things we can do that will hold down health care costs and make it affordable for more people. Unfortunately, ObamaCare doesn’t do any of those things. In Florida, we are focused on becoming the number one place for businesses so that Floridians have more jobs.”

Bend Over Florida Your Federal Taxes going up $3,669

tax burden

Everyone has been talking about the impact of the Bush tax cuts expiring on January 1, 2013. The Heritage Foundation has a new website that shows the average individual tax increase by state. Floridians will experience an average increase in federal income taxes of $3,669. The interactive map of average tax increases by state may be found here.

Heritage’s Morning Bell notes President Obama told an Ohio crowd on June 14th, “I’ve said that this is a make-or-break moment for the middle class, and I believe it.” Indeed it is—because in a sluggish economy, American taxpayers are about to be clobbered by the largest tax increase in history.

According to Heritage:

“Starting January 1, 2013, Americans will face a $494 billion tax increase, the highest ever in one year. According to The Washington Post, congressional aides started calling it “Taxmageddon”—a chilling reference fit for an apocalyptic nightmare. Federal Reserve Chairman Ben Bernanke has warned that it will be a ‘massive fiscal cliff’ for the economy.”

Heritage research shows that families will see an average tax increase of $4,138. Baby boomers’ average increase will be $4,223, and low-income taxpayers can expect a $1,207 increase. Millennials will be hit with an average hike of $1,099, and retirees $857. Check out the infographic to see where you fall.

Taxmageddon falls primarily on middle- and low-income Americans. That’s because, contrary to the President’s rhetoric about “the wealthiest Americans,” 60 percent of the Bush tax cuts went to middle- and low-income taxpayers. The expiration of the patch on the Alternative Minimum Tax (AMT) will cause these taxpayers to pay a tax that was never supposed to hit them, and the expiration of the payroll tax cut is a tax hike almost exclusively on middle- and low-income families.

This is only the direct impact on individual taxpayers. Americans at all income levels will feel the pain of Taxmageddon, because it will slow job creation and wage growth. At 8.2 percent unemployment, it’s the last thing the economy needs.

Where are these tax increases coming from? Under current law, tax policies in seven different categories will expire, and just five of the 18 new tax hikes from Obamacare will begin.

About a third of Taxmageddon’s increase comes from the expiration of the 2001 and 2003 Bush tax cuts. These cuts are best known for reducing marginal income tax rates, but they also reduced the marriage penalty, increased the Child Tax Credit and the adoption credit, and increased tax breaks for education costs and dependent care costs.

What is the President doing to prevent this? Congress and President Obama have developed a penchant for waiting until the very last minute to act on pressing tax legislation. In 2010, they waited until late December to extend the expiring Bush tax cuts for two years. At the end of 2011, they waited again until late December to extend the expiring payroll tax holiday. This is a bad habit.

The threat of Taxmageddon is clouding jobs and family finances now. Businesses, families, and investors are uncertain about the future. They need to know as soon as possible that this massive tax increase will not hit them on New Year’s Day 2013.

But yesterday, Obama told the crowd he was their economic savior: “I have approved fewer regulations in the first three years of my presidency than my Republican predecessor did in his.” He also warned that Republicans want to raise taxes on the middle class, adding, “This is not spin. This is not my opinion. These are facts.”

The fact is that during his first three years in office, the Obama Administration unleashed 106 new major regulations that increased regulatory burdens by more than $46 billion annually, five times the amount imposed by the George W. Bush Administration during its first three years. Hundreds more costly new regulations are in the pipeline, many of which stem from the Dodd–Frank financial regulation and Obamacare. Conveniently, of course, many of Obamacare’s main provisions—including tax increases—don’t kick in until 2014.