Saturday, January 15, 2011

When President Obama was running for office in 2008, he repeatedly pledged not to raise taxes on people making less than $250,000 a year. He initially broke this promise when he signed into law the expansion of SCHIP, and Obamacare adds even more. Today Americans for Tax Reform published a comprehensive list of tax hikes in Obamacare, most of which raise taxes on the middle class. Excluding the question of the mandate itself, here is a list.

Direct tax hikes on the middle class due to Obamacare:
  • Reduction of Health Savings Accounts
  • Flexible Spending Account purchases of over the counter medication
  • Increased penalties on early withdrawals from HSAs
  • Medical itemized deduction cap
  • The Cadillac Tax on union members and others with extensive policies
  • Taxes on indoor tanning
  • Codification of the "economic substance doctrine"
  • Taxes due to increased 1099 reporting

Indirect tax increases which will be paid by the middle class:
  • Tax on medical devices used by the middle class
  • Taxes on prescription medications
  • Taxes on health insurance
  • Taxes on Charitable hospitals
  • Blue Cross/Blue Shield tax hike
  • Increased taxes on employer provided drug benefits in conjunction with Medicare part D
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