Keith Hennessey explains how Obamacare will result in higher taxes on the middle class.
Excerpt:
As expected, the House bill would mandate that individuals and families have or buy health insurance.
But what if they don’t buy it?
Then Section 401 kicks in. Any individual (or family) that does not have health insurance would have to pay a new tax, roughly equal to the smaller of 2.5% of your income or the cost of a health insurance plan.
I assume the bill authors would respond, “But why wouldn’t you want insurance? After all, we’re subsidizing it for everyone up to 400% of the poverty line.”
That is true. But if you’re a single person with income of $44,000 or higher, then you’re above 400% of the poverty line. You would not be subsidized, but would face the punitive tax if you didn’t get health insurance. This bill leaves an important gap between the subsidies and the cost of health insurance. CBO says that for about eight million people, that gap is too big to close, and they would get stuck paying higher taxes and still without health insurance.
He uses several different examples to show how Obama’s plan would raise taxes on people making much less than 250,000 dollars a year. I know what you’re thinking – “Wintery! Obama promised he wouldn’t raise taxes on the middle class!” Well, he’s going to do exactly what is consistent with his voting record. If only the left-wing media had told us his voting record, instead of talking incessantly about Sarah Palin’s children.
I should note that Obama broke his tax pledge many times already.
Americans for Tax Reform has been documenting Obama’s string of broken tax promises. Obama first shattered his $250K promise only 16 days into the presidency when he enacted a 61 cent tax increase on cigarette packs, disproportionately hurting low-income Americans. Next, Obama aggressively supported the cap-and-trade tax that, if the bill passes the Senate, will increase energy costs for an average American family by $1,500. Now, in a recent interview with Obama’s Senior Adviser David Axelrod, the administration is waffling about how taxes will be raised for health care reform. When asked if tax increases on families making less than $250,000 might pay for health care, Sen. Schumer, D-N.Y. said, “There are lots of things on the table now.”
Next time, don’t worry about Tina Fey’s sketches, worry about the thousands of dollars that Obammunism will cost you in increased health care costs, increased electricity costs, higher taxes, lost income, stock losses, interest on the national debt, etc. Katie Couric isn’t going to give you all your savings back. Campbell Brown isn’t going to give you your job back. They’re rich Democrats. They don’t care about truth.
UPDATE: Hot Air links to the story and adds this:
As John Boehner points out, many of the so-called “rich” above $250K a year in earnings are small-business owners who simply file their business revenues as personal income. A 5.4% “surtax” — really just a hike in the upper tax bracket — will take more of their capital out of their businesses and reduce the opportunity for job growth.
The Post notes that the “surtax” would apply to about 2.1 million Americans. The mandate for coverage will force almost four times as many middle-class Americans to pay higher taxes as a result of the ObamaCare plan in the House while preventing them from getting coverage. The House hasn’t soaked the rich; they’ve declared war on the middle class and the uninsured.
Socialists against the middle class.
WINTERY KNIGHT 