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  • To Stop Taxmageddon, Repeal Obamacare

    Unless President Obama and Congress take action soon, Taxmageddon will hit on January 1, 2013. Taxmageddon is a $494 billion tax increase for 2013 alone. It is made up of several expiring tax policies and the implementation of new Obamacare tax increases that all kick in at the start of next year.

    Five of Obamacare’s 18 new taxes begin in 2013, and they would raise $23 billion for the year. Heritage tax policy expert Curtis Dubay explains that two of them will be especially harmful: an increase in the Medicare payroll tax and a new medical device tax.

    Starting January 2013, Obamacare increases the Medicare payroll tax from 2.9 percent to 3.8 percent for individuals with income over $200,000 a year ($250,000 for couples). This increase will hinder economic growth and deter job creation for small businesses.

    Moreover, Dubay writes, the tax “is a dedicated tax to fund Medicare Part A. Obamacare, however, uses the new revenue raised from these increases to fund new spending created by the law. This breaks another long-held precedent that the revenue that payroll taxes raise goes only to programs that Congress created the taxes to fund.”

    Next year, Obamacare also applies the increased Medicare payroll tax rate to investment income for the first time, including capital gains, dividends, rents, and royalties. Dubay states, “The application of the 3.8 percent [hospital insurance] tax to investment income will have an even more deleterious impact on job creation because it will reduce investment that is essential for job creation.”

    Taxmageddon includes a rise in the capital gains tax from 15 percent to 20 percent, in addition to the 3.8 percent from Obamacare, which brings the capital gains tax rate to 23.8 percent, a 59 percent increase as of New Year’s Day.

    In addition, beginning in 2013, Obamacare imposes a 2.3 percent excise tax on the sale of commonly used medical equipment. This tax has the potential to significantly affect employment and medical innovation. Device manufacturers will either pass on the tax as higher costs to consumers or absorb it themselves. If they pay the costs themselves, they will likely have to recoup this cost by decreasing labor costs.

    In fact, this is already happening. One company already decreased its labor force by 5 percent in preparation for the tax. Dubay explains, “Many of those job losses will occur in the company’s research and development department. This will stifle the company’s ability to innovate to create new products or improve existing products.”

    Congress should stop all of Taxmageddon to prevent the staggering blow it would deliver to taxpayers and the economy. In order to prevent the devastating impact of Taxmageddon in full, Congress should delay the Obamacare tax increases as long as it can until it can repeal the entire law.

    Posted in Obamacare [slideshow_deploy]

    9 Responses to To Stop Taxmageddon, Repeal Obamacare

    1. steve h says:

      How can you say to stop taxmaggedon, you need to repeal something that accounts for less than 5% of the tax increases? That's just plan silly.

    2. Carlos S says:

      I was hoping to get some good information on "Taxmaggedon", but I agree with the previous post – this is just plain silly. I feel like some brain cells died after reading this post.

    3. MilitaryBetrayed says:

      Taxed way too much already. The original 3% tax was suppose to be temporary because of a war. Congress tricked the American people into voting for it and now it's out of control. If 16 TRILLION is not enough debt, how will 26 TRILLION in debt affect our economy? STOP spending, stop growing government and stop squeezing the producers, and business owners who own the jobs, which build the economy. If you can afford a cell phone, beer and cigarettes, then you can afford your own damn health insurance. Oh, that's right, moochers, parasites, and leeches don't pay for that already. We are Greece, we are doomed.

    4. daniele says:

      TAXMAGEDDON FOR BIG PHARMA&INSURANCE COMPANIES,FRIENDS WITH OBAMA!! STOP spending, stop growing governmentRIGHTS OVER PEOLE and stop squeezing PEOPLE!

    5. Mike, Wichita Falls says:

      This regime has to know that these new taxes will hurt job creation. More unemployed people = more welfare recipients = more democrat voters = more power.

    6. Jeri says:

      I believe it is obvious that women don't like this repeal of obamacare. I hope they will open their eyes and mind and realize that Obamacare is not free. Everyone will share in paying for it. If all you women want is abortion paid for, then use birth control or cross your legs. If you want birth control, well, insurance, any insurance pays for that with a copay from the patient. I am a woman and all of this crap about abortion and birth control is jus a ruse set out by Obama.

    7. Jeri says:

      This bill will put people out of work, doctors are threatening to quit, then where will you go for healthcare? It will cost twice as much as they said in the beginning, which I knew and also knew that the CBO was hedging on their estimates. Women, I have six children, worked three jobs to take care of them. I never got an abortion, the taking of an innocent, helpless little life so my life would be less troublesome. My children are the greatest and I am so proud to have them. But I used the carry a big stick type of discipline. It works and don't let people tell you that it is cruel. My kids have the highest respect for me and we laugh about things they did that required my intervention. This healthcare is not FREE. WAKE UP!!!!

    8. Barry says:

      Both the House of Representatives and Congress don't care. Why should they? They have their own retirement plan, health plan and can set any raise they want while all other people have to struggle to make ends meet. Vote no incumbent back into office!!!!

    9. Pingback: Obamacare: unquestionably the worst disaster in U.S. healthcare history - US Message Board - Political Discussion Forum

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