Tag Archives: Tax

News

Obamacare and the simulus bill will increase your taxes

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First, Americans for Tax Reform. (H/T Health Care BS)

Excerpt:

Individual Mandate Tax: Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax of up to $1,485.

Hike in Medicare Payroll Tax: For self-employed idividuals, the Medicare tax jumps from 2.9% to 3.8%. For businesses with employees, a firm’s “matching” Medicare tax jumps from 1.45% to 2.35% of employee salaries.

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 $750 for all full-time employees.

Excise Tax on Comprehensive Health Insurance Plans: Starting in 2013, new 40 percent excise tax on “Cadillac” health insurance plans ($8500 single/$23,000 family).

Medicine Cabinet Tax: No longer allowable 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).

HSA Withdrawal Tax Hike: Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent.

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.

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

Tax on Medical Device Manufacturers: $2 billion annual tax on the industry imposed relative to shares of sales made that year.

Tax on Health Insurers: $10 billion annual tax on the industry imposed relative to health insurance premiums collected that year.

But that’s not all – there’s a marriage penalty in there, too. (H/T Jennifer Roback Morse at RuthBlog)

Excerpt:

“The Senate bill stipulates that two unmarried people, 52 years of age, with private insurance and a combined income of $60,000, $30,000 each, will pay a combined cost of $2,483 for medical insurance,” Quist wrote.  “Should they marry, however, they will pay a combined cost of $11,666 for insurance — a penalty of $9,183 for getting married.”

The numbers are based on the government’s definition of “poverty level.”  Those above poverty level will pay higher premiums, and the excess would be redistributed to those in lower income levels.

[…]John Helmberger, CEO of the Minnesota Family Council and Institute, said the middle class will once again take the hit financially.

“This hidden marriage penalty,” he said, “hits hardest the very people that are most suffering from the pathologies resulting from the decline of marriage in our culture.”

I recommend that all my readers click through to Dr. J’s post and read her comments about Christian liberals who vote for government-run health care, thinking that it doesn’t destroy marriage and family. The left is dominated by anti-family types who think men and women are interchangeable, and that means the traditional family is in their crosshairs.

The stimulus bill will cause tax increases

Second, Hans Bader writes about the stimulus bill taxes for the Competitive Enterprise Institute. (H/T ECM)

Excerpt:

The federal government’s $800 billion stimulus package, which failed to cut unemployment, is now forcing states and local governments to raise taxes. The Wall Street Journal describes how “stimulus dollars came with strings attached that are now causing enormous budget headaches . . . At the behest of the public employee unions, Congress imposed ‘maintenance of effort’ spending requirements on states. These federal laws prohibit state legislatures from cutting spending on 15 programs,” such as ”welfare, if the state took even a dollar of stimulus cash,” even if a state’s tax revenue has since fallen due to the recession.  “So when states should be reducing” their spending ”to match. . . lower revenue collections, federal stimulus rules mean many states will have little choice but to raise taxes.”

[…]The stimulus package actually destroyed thousands of real world jobs by triggering trade wars with Canada and Mexico that killed jobs in America’s export sector (the stimulus package barred a measley 97 Mexican truckers from U.S. roads, a minor NAFTA violation that led to massive Mexican retaliation against U.S. exports of 40 farm products and kitchen goods worth $2.4 billion).  It also is wiping out jobs by inflicting costly mandates on state governments (such as repealing welfare reform, and imposing costly “prevailing wage” regulations and expensive racial set-asides).

Don’t elect a radical leftist during a recession.

Commentary

Do leftists practice what they preach about helping others?

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Neil Simpson has a post analyzing the giving patterns of Robin Hood Democrats.

Excerpt:

Consider how these Liberal heroes want to take your money to “give” to others but can’t manage any real and significant giving themselves.  If Joe Biden, for example, can’t afford to give more than 0.2% over his roughly quarter-million dollar income (that is point-two percent, not two percent — only $369 per year), then how could he possibly afford to pay increased taxes?  Oh yeah, there will be loopholes for him and those who vote for the tax increase bills.

His 0.2% giving and the percentages below are even worse than they look because they are based on Adjusted Gross Income, which is typically much less than gross income.

[…]A truly inconvenient truth: Al & Tipper Gore donated $353 of their 1997 income of $197,729, or 0.18%.  That is a fraction of 1%.  I wonder if he’s making real donations now that he’s getting rich off the AGW fraud?

Neil’s post has a lot more examples of leftists who preach one thing, but do the exact opposite in their own personal lives. I think that leftists are largely secular hedonists (regardless of their professed religious faith) and they therefore cannot rationally justify making sacrifices for others who may have a greater need than themselves – charity just doesn’t make them feel as good as keeping the money themselves. When they think that no one is watching, they do what’s consistent with their real beliefs: every man for himself and survival of the fittest.

News

MUST-READ: The UK Daily Mail gives the best summary of Climategate

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This story at the UK Daily Mail has all the details in plain English, with graphs. (H/T Ace of Spades via ECM)

First, they got rid of the Medieval Warming Period by cherry-picking data:

Some tree-ring data eliminates the medieval warmth altogether, while others reflect it. In September 1999, Jones’s IPCC colleague Michael Mann of Penn State University in America – who is now also the subject of an official investigation –was working with Jones on the hockey stick. As they debated which data to use, they discussed a long tree-ring analysis carried out by Keith Briffa.

Briffa knew exactly why they wanted it, writing in an email on September 22: ‘I know there is pressure to present a nice tidy story as regards “apparent unprecedented warming in a thousand years or more”.’ But his conscience was troubled. ‘In reality the situation is not quite so simple – I believe that the recent warmth was probably matched about 1,000 years ago.’

[…]Finally, Briffa changed the way he computed his data and submitted a revised version. This brought his work into line for earlier centuries, and ‘cooled’ them significantly.

Then, they hid the decline in temperature after 1960:

According to his tree rings, the period since 1960 had not seen a steep rise in temperature, as actual temperature readings showed – but a large and steady decline, so calling into question the accuracy of the earlier data derived from tree rings.

This is the context in which, seven weeks later, Jones presented his ‘trick’ – as simple as it was deceptive.

All he had to do was cut off Briffa’s inconvenient data at the point where the decline started, in 1961, and replace it with actual temperature readings, which showed an increase.

On the hockey stick graph, his line is abruptly terminated – but the end of the line is obscured by the other lines.

Ace is calling this a must-read. I agree. Drop everything you are doing and go read it. If you have a blog, blog about it. Submit the Daily Mail post to Stumble Upon, Digg and Reddit.