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  • Congress Raises Taxes on Poor to Pay for Health Care ... Again

    Throughout his campaign, President Barack Obama repeatedly promised the American people: “If you’re a family that’s making $250,000 a year or less you will see no increase in your taxes. Not your income tax, not your payroll tax, not your personal gains tax, not any of your taxes.” Just 15 days into office, President Obama signed a bill expanding the children’s health insurance program that was paid for with a 156% tax hike on tobacco. Since slightly more than half of today’s smokers (53%) earn less than $36,000 per year, Obama’s first effort at expanding government’s role in health care also became his first broken promise.

    But that first Medicaid expansion was minor league compared to the estimated $1.3 trillion health care plan Congress is considering now. And how is Obama planning to pay for his health care bill? Tax hikes. Including employer health care mandates, which as Heritage scholars James Sherk and Robert Book explain, are really just a tax on low-income workers:

    Both the House and Senate drafts of health care reform include so-called “employer mandates” or “pay or play” provisions. These mandates require employers to pay higher taxes if (a) they do not offer health insurance, or (b) they offer it but have employees who decline it and instead use the government system.

    The ostensible purpose of such a tax penalty is to discourage employers from dropping workers onto the taxpayer-subsidized government plan. The tax will pay a portion of the public’s costs when employees use the new government system instead of employer-sponsored insurance. However, the actual result will be lower pay and job losses, especially for low-income workers.

    If Congress makes health coverage more expensive for employers, or requires new payroll taxes, employers will be forced to cut wages to make up the difference. Even if the law stated (as the House bill does) that employers could not cut pay directly to make up for the cost of health care, they will ultimately, somehow have to do just that.

    Obama has broken his no-new-taxes-on-the-poor pledge once already. Will he do it again?

    Posted in Obamacare [slideshow_deploy]

    15 Responses to Congress Raises Taxes on Poor to Pay for Health Care ... Again

    1. Sheron from Jackson, says:

      Thank you for the article. Why can't more people realize how they have been lied to? Another tax on the middle class and everyone else is the cap and trade bill that will cause anyone who consumes any type of energy (gas for the car, electricity for light, or gas for heat). Let's not also foget the "Transparancy in Government Pledge" that was immediately forgotten when Mr. Obama took office.

      How much is Queen Nancy's husband going to make off of these deals?

    2. matthew, queens ny says:

      once a tax and spender always a tax and spender. what is amazing is that people will fall for the liberal lies time and again. if a health care reform package is passed there will have to be across the board tax increases to pay for it. if obama really believes that the reforms are necessary then he should come clean tomorrow night and explain why taxes need to be increased. he won't do that he will just keep on blaming the republicans for any failure of his bill. the o man never fails.

    3. Eric, NM says:

      Woah. Hold on. Levying new taxes on tobacco is not the samething as levying taxes on the poor. You have an option to not to smoke. If you choose to smoke, then you choose to pay higher taxes. Simple as that.

      Okay, now I am good.

    4. Pingback: Obama Raises Taxes on Poor to Pay for Health Care … Again » The … | Money Blog : 10 Dollars : Money Articles.

    5. Dawn, California says:

      Get over it people. This is not a tax on the poor, this is a tax on people choosing to smoke. If the poor people are more stupid than the rich and choose to smoke even though it costs a fortune then that is their choice. It's not surprising why they continue to be poor, bad choice after bad choice. I don't feel bad for the poor being "taxed", when I was young and poor I paid some taxes, not a lot, now that I make a lot more money I pay A LOT of taxes. The poor people yell that this is the way it should be because I make more money (and I use to be one of them saying the rich should pay). I now disagree. I worked hard to get where I am, and I see a huge portion of the money I earn go to taxes to support the welfare programs the poor people are on. I'm pretty sick of that, I think Obama should not only tax tobacco, but cut a million other things "poor" people think they deserve because they can't earn it themselves.

    6. Hank Richards - DC 2 says:

      Washington, DC / PRonlinenews.com

      © 2008-09 reaching up to 400,000 journalists daily

      For Immediate Release and Reprint Approved / July 21, 2008 / after 1400 edt

      Capital Earnings & Research releases it's latest polling data modeled for third party consideration and contracted outcome data.

      The following results have a marginal error of 4% and have been established electronically through a connection of 894 qualified tax paying respondents via the supercomputer system.

      These results reflect opinions using proprietary software developed by Capital Earnings & Research only and is the only ©'community quickshot' algorithm that produces results in less than 4 hours for any single question, the premier dedicated polling analysis software in the nation.

      The results are as follow:

      64% want NO federal health-care run programs at all

      63% prefer a tax credit to cover the cost of private insurance

      71% want personal choices without government competition

      76% expect the government to take decisive action to reduce insurance costs

      77% don't want any federal tax dollars used to pay for illegals' health needs

      data available at request

      Hank Richards

      Managing Partner

      (256) 417-6084 VoX International Call Center

      (256) 738-2200

      http://www.earningsresearch.com/ http://www.pronlinenews.com/

    7. Verno, Atlanta surbu says:

      If the new health care bill is so wonderful why don't they (Congress) subscribe to it instead of their own version. Also since no new private policies can be issued after 2013, does this mean any new congresspersons will automatically have to be enrolled in Obamacare? Hmmmm?

    8. Pingback: Hidden Camera Looks at Canadian Healthcare | Patriotic Dissent

    9. Pingback: ObamaCare Roundup and LinkFest « The Climate Heretic

    10. Roger S., Ma. says:

      Dawn, California: I won't tell you what to do, though I'd like to. After "… I use to be one of them saying the rich should pay", further comment seems a waste. Enjoy the ride. You asked for it.

    11. Christine Z. IL says:

      Wow. I totally agree with you Roger S. I guess people will not realize that they have been suckered until they can't. Obama is a liar. Check it out. Oh he is a very smooth talker. He does not care about anyone except himself. If you care to check the facts, you might learn something. Forget the mainstream media. You will go in circles trying to figure things out.

    12. Nina says:

      It’s hard to see that Obama will get any profit from a universal Health Care system. It’s the insurance companies who will lose the profit. Most people care about other and their health. And yes, a health care system is not free. If as an example you pay 2% of your income toward a health care system and you earn $ 3000 US, you pay $ 60.00 US. Instead of paying the money to CEOs and investors as a profit, they will be used toward a cancer treatment to your neighbor or the labor of your daughter. And that’s what make sense to me.

    13. Joshua, NV says:

      So, you are being taxed on something that has been proven to damage not only your health, but also the health of people around you to pay for health care? How DARE they? This is supposed to be a FREE country where SOMEONE ELSE should be paying for your chosen lifestyle!

    14. Pingback: Fact-checking the ( )bama health care pep rally, part III :

    15. Pingback: How does Obama lie about health care? Let me count the ways! | The Lonely Conservative

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