Did you think subsidized health insurance meant free health insurance? Did you? Well someone has to pay the subsidies. So get ready to start subsidizing.
Now of course, some of these taxes are hidden away as taxes on evil business people, namely insurers. But of course these evil entities are going to engage in the evil economics of capitalism AND PASS THEIR TAX BILL RIGHT ON TO YOU.
Obama’s been reelected, so the fun is over. It’s time to start paying. Here’s your new tax bill:
1. Raw money grab: First of all, in 2014 there’s the an $8 billion tax being slapped on insurers just as a thank you for playing gesture. Obamacare supporters are demanding that they eat the loss and take it out of profits instead of raising premiums. Because . . . that’s how Socialists treat private businesses. As I noted, not gonna happen.
2. Redistribution scheme: A $12 billion tax this year on insurers that will supposedly be funneled back to companies that insure the sickest patients. Better hope your company doesn’t have too many healthy people on the rolls! Essentially, it’s a redistribution from the well to the unwell. If you’ve taken good care of yourself all these years, get ready to pay!
3. Soak the rich: A 3.8 percent surtax on unearned income from capital gains and dividends for individuals earning more than $200,000 and couples earning more than $250,000. The same income group also incurred a 0.9 percent Medicare wage tax increase in 2013.
4. Soak the poor: If you failed to sign up for insurance, pay up in the amount of $95 or 1 percent of your income, whichever is greater. Next year it’s 2 percent or $325 and then in 2016 2.5 percent or $695 .
5. Website users fee: That’s right, insurers have to pay 3.5 percent of the premiums they sold on Healthcare.gov. Luckily for them, that’ll cost less than expected.
Coming soon: the 40 percent excise tax on generous insurance plans. Gonna hit the working man, because many unions have been silly enough to negotiate good health coverage for their members.
And let’s not forget the 2.3 percent tax on medical device manufacturers, the ten percent tax on tanning salons (the “Boehner tax”), the changes to flexible savings accounts that reduce your deductions if you use those, the reduced line item deductions for medical expenses, the new tax on brand name drugs, and the state tax increases that will eventually become necessary to fund the expansion of Medicaid.
You don’t like it, do you? Too bad. Pay up.
H/T to Politico, which has a good summary of some of your new tax burdens.