• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • JCT Says Obama Health Plan is a $414 Billion Tax Hike

    President Obama keeps rolling out the tax hikes. In his budget released earlier this month, excluding the tax hikes he assumed to pay for health care, he called for $1.3 trillion in higher taxes over the next decade. Now in his recently released health reform plan, he calls for even more tax increases. Today, the Joint Committee on Taxation (JCT) released their analysis of the tax increases in the President’s plan. According to the JCT, the plan will raise taxes by another $414 billion between 2010 and 2019. The taxes the President Obama proposed hiking are as follows (the year the tax kicks in and the amount the tax will raise between 2010 and 2019 are in parentheses):

    • Require information reporting on payments to corporations (2011 – $17.1 billion)
    • Exclusion of unprocessed fuels from the cellulosic biofuel produce credit (immediately upon passage – $23.9 billion)
    • Codify economic substance doctrine and impose penalties for underpayments (immediately upon passage – $4.9 billion)
    • Increase Hospital Insurance portion of the payroll tax and apply it to investment income for families earning more than $250,000 a year ($200,000 for single filers) (2012 – $183.6)
    •  Excise tax on “Cadillac” insurance plans valued at more than $10,200 for individuals and $27,500 for families (2018 – $32.7 billion)*
    • Impose annual fee on manufacturers and importers of branded drugs (2011 – $33.4 billion)*
    • Impose excise tax on manufacturers and importers of medical devices (2012 – $20 billion)*
    • Impose annual fee on health insurance companies (2014 – $59.5 billion)*
    • Excise tax on indoor tanning services (2010 – $2.7 billion)*
    • Limit Health Savings Accounts (HSA) (2011 – $5.0 billion)*
    • Increase taxes on unqualified distributions from HSAs (2011 – $1.4 billion)*
    • Limit Flexible Spending Accounts (FSA) (2014 – $11.4 billion)*
    • Eliminate deduction of expenses allocable to Medicare Part D subsidy (2012 – $2.6 billion)*
    • Limit deductions for medical expenses (2013 – $15.2 billion)*
    • Higher taxes on compensation above $500,000 paid to officers, employees, directors and service providers of covered health insurance providers (2013 – $0.6 billion)
    • Higher taxes on certain health organizations (2010 – $0.4 billion)*

    The taxes with the (*) will directly apply, or will be passed on to, families earning less than $250,000 a year. This is a contradiction of President Obama’s campaign pledge not to raise taxes on these families.

    Almost all of these taxes came out of the separate bills passed by the House of Representatives and the Senate. The only new tax the President proposed is applying the Hospital Insurance (HI) portion of the payroll tax to investment income for the first time. This would be a dangerous break with past precedent and would slow economic growth at the worst time.

    The President’s plan assumes raising $24 billion by excluding paper companies from taking the celluslosic biofuel producer credit. This credit was only supposed to apply to producers of biofuels, but a technicality in the law allowed paper companies to qualify. The Senate already laid claim to this exclusion in their recently passed “jobs” bill. It that becomes law, policy and germaneness aside, the President will have to conjure up some more new taxes or spending cuts to pay for his new plan.

    The hefty tax increases are a heavy blow to a struggling economy, but they do not come close to covering the full cost of the President’s plan which will cost more than $1 trillion over ten years. The President has repeatedly insisted that his plan will not increase the deficit. If that is so, he needs to explain how he will fill the $600 billion shortfall. The gap could mean even more tax increases are on the way. Unfortunately, such calls are now commonplace for the President.

    Posted in Obamacare [slideshow_deploy]

    10 Responses to JCT Says Obama Health Plan is a $414 Billion Tax Hike

    1. John B. San Diego says:

      If we Americans will be taxed to death, why on earth do we need health benefits? Just purchase a pine box for us all and be done.

      I think the quote goes something like this; Give me Liberty or Give me Death!!!

      We think Obama will accomplish the death part 100% no problem.

    2. Pingback: JCT Says Obama Health Plan is a $414 Billion Tax Hike – The Foundry « HOME – Other Right Links and Posts

    3. Art Phillips, Pleasa says:

      Obama Care? I know all about that, it is,

      Obama cares about Obama

      Obama cares about dictators

      Obama cares about Islam

      Obama cares about socialism

      Obama cares about terrorists

      Obama does not care about YOU!

      _______________________________________________________________

      TO: All U.S. Congressmen

      All U.S. Senators

      The U.S. President

      From: Art Phillips and by proxy,

      Millions of American citizens

      The reality that I am moved to write a letter with the following content reveals a truth all Americans are beginning to recognize. We are in the midst of an unraveling of the fabric that has bound us together for the past two hundred thirty three years. A fabric which supports the weight of all, we as a people, hold dear. Our Freedoms, Liberty, and Justice, just to name a few are all supported by and dependent upon the strength of this Red, White, and Blue fabric called the United States Constitution. Creating such a fabric required many different threads, each carefully selected for its ability to withstand time and stress while maintaining its strength, integrity and values. The threads had to be bound together tightly so that they could not be divided thus compromising the integrity of the fabric. Each thread of this fabric has a name, to mention a few, Honor, Duty, Loyalty, Morality, Strength, Honesty, Trust, and many more. All the threads in this fabric represent the greatest attributes of the human race, one race, with different shades of one color.

      Prior to the 2008 election, the majority of citizens of the United States of America were well on their way to creating a new race, the American race. A new race of people with only one color, the American color, and only one name, American, not Asian American, or African American, simply American. A race bound together by their hopes and dreams and care for each other. The struggle for this dream took over two hundred years and millions of lives. It is disgraceful how the actions of those running for the honor of serving in public office have set this noble achievement back many years. I ask you men and women in the congress and the senate, as well as the men who ran for president, was it worth it? Was your ambition, your pride, your need to be famous or whatever self-serving goal you were seeking worth destroying what millions of Americans gave their lives for? Do not tell me you don’t know what I am talking about. Each of you knows very well that the despicable use of race in the 2008 election was obscene and you all share the responsibility for it. The 111th legislature, as well as the 2008 presidency, will be looked upon as the blackest days in American history thus far.

      Though I have served my Country, and my family has sacrificed much for our way of life, I have failed to do my duty. I took an oath to protect the Constitution of the United States of America against all enemies, both foreign and domestic. I was not diligent in the exercise of my duty to protect our Constitution from malignant growth known as government. Congressmen, Congresswomen, Senators and President, you represent that growth. It is your blind ambition and self interest you serve rather than the American people and the Constitution you swore to protect. The actions taken by this administration and legislature amount to a direct attack on the Constitution and the rights and freedoms it guarantees. You have forgotten that it is not your place or your right to tell the people what you are going to do. It is your duty and obligation to ask the people what they want! When I say, it is your duty to ask the people, I mean the majority, not the few that simply seek to be coddled, ask those who have made and make this nation successful. This government has made too many false assumptions with regard to the reason it was elected.

      For too long I have lived under the misguided assumption that individuals elected to the highest offices in the land, individuals that took the same oath to the Constitution I did, would honor that oath. I believed that they could be trusted and things like Honor, Duty, Loyalty, and Morality were as important to them as they are to me. I made a serious error in judgment with regard to many of them. Many in the Senate and Congress do not have the capacity to possess such ideals. Just think, people who are supposed to be the guardians of our Constitution are trying to limit free speech, restrict the free exercise of religion, remove the right to own arms, just to mention a few of their attacks on the Constitution and the American people.

      What person in their right mind has the audacity, the arrogance or the ignorance to expect people to apologize for the success of their nation? The only change we need now is to remove such ingrates from office. If our country is such a horrible place to live, why do so many around the world want to come here? Why does our government want to reward criminals and provide them free medical, subsistence and free education at the expense of those who can’t afford it for their own families? People who have entered this country illegally and laugh at our laws, many of whom commit crimes in our country, are given property and rights paid for by our citizens even when these same citizens cannot afford it for themselves. If these illegal aliens want to live in a country like the United States of America then they need only to go back to their own country and pay the price Americans here have paid and build another America, the world could certainly use more.

      Americans owe the world nothing, nothing at all. This nation has always provided for the rest of the world freely and willingly. Our nation has fought and sacrificed more than any nation on earth for those in need around the world. Now some of you in Washington have the nerve to think we should apologize for our success. You are very much mistaken if you think this American feels apologetic, and don’t even think of apologizing for me!

      Our nation’s success was purchased with the hard work, sweat, tears, suffering and blood of ordinary people who possessed extraordinary will, courage and values. I am proud of this nation because of citizens who were willing to share that success along with the blood of their sons and daughters with the world. I despise any individual calling for or making an apology for the sacrifice of my brothers and sisters in arms, be they living or dead, or any citizen of our great nation. Get it clearly embedded in your conscience that the United States has nothing to apologize for! Consider this, why don’t those of you in Washington that have degraded, insulted and slandered our country, its military and many of our citizens start correcting the disastrous course you have taken by making a long overdue apology to America and her allies. Speaking of apologies, the media, those in television mainly, have betrayed their profession, their country, and themselves. What is most discouraging about the media is the fact that they know very well they have lost all credibility and trust. Some journalists even admit that they don’t report news anymore, “we make the news” one of them stated. You won’t find any honor in this profession any more. And just think, I am just a simple person, a nobody to the new Washington and the media.

      I have a great deal more to say, however, I am sure most congressmen and senators are far too superior to even acknowledge an average citizen much less read all this. To those in our government still holding to your beliefs and values, those who still honor the Constitution and believe in freedom over tyranny, I salute you, respect you, and I have your back so long as we stand. To the rest, look carefully in a mirror, you are just a person. There is nothing special about you. There are many in this country that can do your job far better than you ever will. You are only insulting the rest of us and making fools of yourselves acting as though you are any better, any smarter, or any more qualified at what you are doing than a million others are. You were born, you will age, and you will die just like every other person on this earth, why not leave behind a good memory and an unselfish legacy. No one is unaware of the mistakes they have made, each of us knows when we are doing something for the wrong reasons. I hope I can get through to at least a few of you in government before the betrayal of the American people turns to outright treason. Where is your Courage, Commitment, Honor, all those things a leader must possess?

      God Bless our great nation!

      Respectfully,

      Art Phillips and millions of other Americans

      Afterthought: What could be so valuable to a person elected to serve a nation as great as the United States that they would betray such a trust? I can't answer that, however, we are witnessing this very thing in our government. It seems that most of those we trusted to protect our beloved Constitution have betrayed every citizen in the United States. In the past six months we have seen our Constitution, our Military, and many average citizens slandered, threatened and subjected to viscious attacks which were totally unwarrented. Our present administration and legislature is by all means and definition guilty of treason. When will one of our many Law Enforcement, Judges, Dept of Justice or courts find a little courage our soldiers have and make these trators and criminals answer. It looks as though the only ones who are going to be punished for our governments dishonor and criminal activity is US.

      Art Phillips

      Loyal American citizen.

      Texas

      rod2009freedom@earthlink.net

      • bob says:

        thanks man. i,m a vet also. your very eloquent message is both factual and beautiful. GOD BLESS you

    4. ROBERT 78 says:

      TO OBAMA :

      NO WAY TO OBAMA !!.

      REMEMBER "NATIONAL TAXES" BELONG TO ALL AMERICAN CITIZENS, 50 STATES AND COUNTRY NEEDS MORE OTHER THINGS THAN "OBAMACARE " ALONE !!!. .

      OBAMA YOU NEED TO RETIRE AND RESIGN YOUR POSITION IN WHITE HOUSE. WE DON'T KNOW ABOUT YOUR "RETIRE" BUT "RESIGN" YES OF COURSE. AND ALLOWS OUR NEW 2010 CONGRESS PEOPLE TO RE ESTABLISH BETTER PLANS THAN "OBAMACARE" TOO DANGEROUS FOR OUR COUNTRY THAT IS WHY WE DON'T DARE TO ACCEPT YOUR "OBAMACARE". HOPE THIS WILL CLEAR TO YOU. AMEN

    5. Brad, Detroit, MI says:

      Why tax the few items that have actually been shown to reduce health care costs – like HSA's, FSA's and other Healthy Spending Plans ? Also, when you do encounter a health issue, why would you increase the limit on your medical deductions ? They are already needlessly high even for those with modest salaries and limited disposable income. It is not about Choice and Competition – it is all about CONTROL.

    6. Pingback: Stargate SG1, The GOP, and Health Care. « DouglasernstYLP

    7. tom conten palm spri says:

      I am a tax preparer and this year nearly everyone of my clients has received a tax benefit or decrease:

      - American Opportunity Tax Credit up to $2500 for all College students

      -Increased Earned Income Credit for those moderate income families with children

      -The 6.2% up to $800 per family Making Work Pay Credit

      - The up to $4500 received for the Cash for Clunkers program (non taxable)

      -The sales tax deduction for buying a new car after 2/16/09 and before 12/31/09

      -The $8000 credit for first time New Home Buyers

      -The credit (up to $1500) for energy efficient windows or heating and air conditioning

      for your home

      - non taxable first $2400 of unemployment insurance

      -increased eligibility Additional Child Tax Credit

      THE TAX CUTS HAVE NEVER BEEN SO GOOD ALL HELPING US TO DIG OUT OF THE MESS LEFT TO US BY GEORGE W BUSH.

    8. John B. says:

      Mr. Palm Springs what a lucky lot your customers are, I could take you on line by line but the diversities of each program are complex.

      I'll instead make it short and sweet do you see any potential employers in beneficiaries the programs you listed above?

      Example cash for clunkers, well it went "Clunk". Auto sales rallied and dropped of just as fast as they had risen. Temporary it was however at best a teaser…

      Who paid for that “Clunk” sir?

      Do you honestly consider our markets recovered or unemployment relieved, Clunk!

      If G.W. was so powerful and so able to bring down entire world markets and force upon populations of many nations the economic destruction we see today;

      I suggest we bring G.W. back, he may indeed be the only individual powerful and aware enough to bring us back out of this mess.Obama is good at pointing fingers and labeling scapegoats.

      Finally President Obama's attempts are admirable but very myopic he is placing band-aids where tourniquets are required.

      I realize your statements and thoughts are well-intended also, the problems we all face seem limitless and Obama keeps throwing money at every problem.

      While the problems appear to have no end our treasury is not a bottomless pit of wealth. As for your going public to tout successes of the programs listed above, I'm no sure Obama or G.W. would like to see what either of us has to say sir ;

      .good day

    9. bob says:

      obama is the living proof of JOE McCARTHYS fanaticism. additionally proof of the fifth column in AMERICA. sounds crazy …. yes. is crazy…. a very scary NO!!!!!!! wake up people before we have another STATES RIGHTS inspired civil war. remember the CIVIL WAR was inspired by the federal governments insistance on ending slavery. a state right issue at the time. now the descendants of those slaves are out for revenge & have been co-opted by the communist party. think VAN JONES.obama threw him under the bus to stop the attention he was generating. their plan in now coming into public view.49%pay no taxes. a very small shift will topple the economic apple cart. after that BLOODSHED .THE WHOLE IS NOT THE SUM OF THE PARTS. THE WHOLE IS THE DEATH OF AMERICA. at some point EVERY great civilization has fallen. is OUR TIME now?????

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×