Healthcare law to sock middle class with a $3.9 billion tax increase in 2019
04-13-2010, 08:05 AM
#1
Senior Member
Thread Starter
Join Date: Apr 2002
Location: The White House
Posts: 246
Likes: 0
Received 0 Likes
on
0 Posts
Vehicle: 97 Tib - REVISION A
Healthcare law to sock middle class with a $3.9 billion tax increase in 2019
QUOTE
Healthcare law to sock middle class with a $3.9 billion tax increase in 2019
By Jay Heflin - 04/12/10 02:37 PM ET
Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — because of healthcare reform, according to the Joint Committee on Taxation, Congress's official scorekeeper for legislation.
The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.
Taxpayers can currently deduct medical expenses in excess of 7.5 percent of their adjusted gross income. Starting in 2013, most taxpayers will only be allowed to deduct expenses greater than 10 percent of AGI. Older taxpayers are hit by this threshold increase in 2017.
Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year. These taxpayers are single and joint filers, as well as heads of households.
"Loss of this deduction will mean higher taxes for 14.7 million individuals and families making under $200,000 a year in 2019," Sen. Chuck Grassley (R-Iowa) told The Hill. "The new subsidy for health insurance would not be available to offset this tax increase for most of these households."
The healthcare law contains tax breaks for individuals purchasing health insurance, but the breaks phase out for those making $88,000 a year.
Grassley, the ranking member on the tax-writing Senate Finance Committee, voted against the health reform bill.
Couples earning less than $250,000 will also nicked by the tax, but the exact number is unclear. The JCT lumps this income level in with those making at least $500,000. It estimates that 58,000 taxpayers earning between $200,000 and $500,000 annually will pay $74 million more in taxes in 2019.
About 5,000 taxpayers earning over $500,000 a year will pay $43 million more in tax because of the limitation.
The JCT figures were supplied by Senate Republican staffers. The numbers were calculated in December but have not been materially altered. The JCT does not comment to the press on its calculations.
President Barack Obama in his Saturday radio address said the healthcare law keeps his campaign pledge to not raise taxes on the middle class. On the trail he promised that individuals earning less than $200,000 and joint filers earning less than $250,000 would not see a tax increase under his watch.
By Jay Heflin - 04/12/10 02:37 PM ET
Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — because of healthcare reform, according to the Joint Committee on Taxation, Congress's official scorekeeper for legislation.
The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.
Taxpayers can currently deduct medical expenses in excess of 7.5 percent of their adjusted gross income. Starting in 2013, most taxpayers will only be allowed to deduct expenses greater than 10 percent of AGI. Older taxpayers are hit by this threshold increase in 2017.
Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year. These taxpayers are single and joint filers, as well as heads of households.
"Loss of this deduction will mean higher taxes for 14.7 million individuals and families making under $200,000 a year in 2019," Sen. Chuck Grassley (R-Iowa) told The Hill. "The new subsidy for health insurance would not be available to offset this tax increase for most of these households."
The healthcare law contains tax breaks for individuals purchasing health insurance, but the breaks phase out for those making $88,000 a year.
Grassley, the ranking member on the tax-writing Senate Finance Committee, voted against the health reform bill.
Couples earning less than $250,000 will also nicked by the tax, but the exact number is unclear. The JCT lumps this income level in with those making at least $500,000. It estimates that 58,000 taxpayers earning between $200,000 and $500,000 annually will pay $74 million more in taxes in 2019.
About 5,000 taxpayers earning over $500,000 a year will pay $43 million more in tax because of the limitation.
The JCT figures were supplied by Senate Republican staffers. The numbers were calculated in December but have not been materially altered. The JCT does not comment to the press on its calculations.
President Barack Obama in his Saturday radio address said the healthcare law keeps his campaign pledge to not raise taxes on the middle class. On the trail he promised that individuals earning less than $200,000 and joint filers earning less than $250,000 would not see a tax increase under his watch.
http://thehill.com/blogs/on-the-money/dome...on-tax-increase
We have 9 years to start saving up. blink.gif lmao.gif
04-13-2010, 06:27 PM
#4
Super Moderator
How you figure that? Reduced medical costs benefit everyone through reduced taxes in the long run. Also, everyone being covered benefits everyone when public hospitals no longer have millions in un-reimbursed medical bills.
04-13-2010, 10:47 PM
#5
Administrator
Join Date: Mar 2006
Location: Lacey, WA
Posts: 12,515
Likes: 0
Received 2 Likes
on
2 Posts
Vehicle: Two Accents, Mini, Miata, Van, Outback, and a ZX-6
Everyone being covered is a joke and a fallacy. Everyone won't be covered. More of the poor will be covered and the middle class will be fined. There is little but wishful thinking that there will actually be reasonably priced options for purchasing your own health insurance in the government created marketplace.
Some additional people will be covered or given reduced cost options, approximately 30 million according to Obama. That leaves the remaining 17 million who are currently uninsured.
Reduced medical costs reduce taxes? You say so but I disagree and think they're completely unrelated. If anything it'll add to the slew of welfare parents taking their 2 year old to the ER for a runny nose, forwarding on more of those costs to the taxed population that pay to support these people. Government supplied healthcare in the US is abused and wasteful. This "solution" just finds a way to tax the people who are currently taking care of themselves to pay for the people who aren't.
Hospitals won't have millions in un-reimbursed medical bills? WHERE DO YOU THINK THE MONEY IS COMING FROM TO PAY THOSE BILLS? It's still going to come from the same people that shoulder it now through increased medical costs.
I know they say that it will decrease costs because of people getting preventative care and not waiting to get things checked out until it's much more costly to provide care, but I seriously doubt it. The government mandated minimum medical insurance is required to pay at least 60% of the costs of care. The costs for services are unlikely to go down substantially, if at all. So a $25,000 procedure will still cost a "covered" individual up to $10,000. In order to get it fully covered you'll still have to fall into the more comprehensive Medicare/Medicaid and in order to qualify for that most people have to basically sell anything they have of value AND agree to allow the government to seize your estate when you die to recoup it's expenses treating you.
Even with 80% coverage I skipped some medical procedures because they were too costly for me to handle my 20%. Getting my rotator cuff fixed was going to cost approximately $20,000 plus $2500 for MRI scans plus $1000 for related doctor's visits plus $4500 for 3 months of physical therapy for a total of around $28,000. My portion would have cost me about $5600 and I couldn't afford that out of pocket. Under Obamacare's minimum that would cost someone $11,200 out of pocket (assuming that fees stay the same). Even if fees drop, it's not suddenly going to become affordable.
I actually WANT socialized medicine. I don't mind paying for it. But this isn't socialized medicine at all. It's just forcing everyone to opt in to the most expensive medical care system in the world. There is no reason that doctors couldn't become government employees and provide their services for hourly pay from the government. Now that would control costs. If it's good enough for rocket scientists it is good enough for doctors, so the argument that qualified specialists wouldn't work unless they could make $10,000 an hour doing surgeries is BS.
Some additional people will be covered or given reduced cost options, approximately 30 million according to Obama. That leaves the remaining 17 million who are currently uninsured.
Reduced medical costs reduce taxes? You say so but I disagree and think they're completely unrelated. If anything it'll add to the slew of welfare parents taking their 2 year old to the ER for a runny nose, forwarding on more of those costs to the taxed population that pay to support these people. Government supplied healthcare in the US is abused and wasteful. This "solution" just finds a way to tax the people who are currently taking care of themselves to pay for the people who aren't.
Hospitals won't have millions in un-reimbursed medical bills? WHERE DO YOU THINK THE MONEY IS COMING FROM TO PAY THOSE BILLS? It's still going to come from the same people that shoulder it now through increased medical costs.
I know they say that it will decrease costs because of people getting preventative care and not waiting to get things checked out until it's much more costly to provide care, but I seriously doubt it. The government mandated minimum medical insurance is required to pay at least 60% of the costs of care. The costs for services are unlikely to go down substantially, if at all. So a $25,000 procedure will still cost a "covered" individual up to $10,000. In order to get it fully covered you'll still have to fall into the more comprehensive Medicare/Medicaid and in order to qualify for that most people have to basically sell anything they have of value AND agree to allow the government to seize your estate when you die to recoup it's expenses treating you.
Even with 80% coverage I skipped some medical procedures because they were too costly for me to handle my 20%. Getting my rotator cuff fixed was going to cost approximately $20,000 plus $2500 for MRI scans plus $1000 for related doctor's visits plus $4500 for 3 months of physical therapy for a total of around $28,000. My portion would have cost me about $5600 and I couldn't afford that out of pocket. Under Obamacare's minimum that would cost someone $11,200 out of pocket (assuming that fees stay the same). Even if fees drop, it's not suddenly going to become affordable.
I actually WANT socialized medicine. I don't mind paying for it. But this isn't socialized medicine at all. It's just forcing everyone to opt in to the most expensive medical care system in the world. There is no reason that doctors couldn't become government employees and provide their services for hourly pay from the government. Now that would control costs. If it's good enough for rocket scientists it is good enough for doctors, so the argument that qualified specialists wouldn't work unless they could make $10,000 an hour doing surgeries is BS.