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  • Chart of the Week: Poor, Middle Class Hit by Obamacare Mandate Tax

    With campaign season in full tilt, Americans are being inundated with rhetoric regarding the various tax proposals touted by President Obama and Governor Romney.

    Given that these discussions usually involve paeans to the middle class and promises to keep their tax rates low, one tax in partcular has received surprisingly little attention: the “penalty” levied on all Americans who do not buy health insurance.

    As shown in the chart above, this new tax – defined as such by the Supreme Court, which ruled it constitutional under Congress’s taxing power – hammers not just the middle class, but roughly 600,000 Americans whose incomes fall below the federal poverty line, according to a recent report from the Congressional Budget Office.

    Heritage health care expert Alyene Senger explained the distribution of the tax in a recent Foundry post:

    Despite claims made by Obamacare’s advocates that the law will help middle- and low-income Americans, CBO’s table reveals that the distribution of the tax falls heavily on those making less than 400 percent of the federal poverty level (FPL)—meaning the majority of this new tax falls on the very people the law was supposed to help. For instance, a family of four making about $24,600 per year, the projected FPL in 2016, could be subject to this egregious tax penalty.

    Regardless of whether or not these 6 million Americans want health coverage, they are going to pay a hefty tax and still won’t have it. Moreover, the individual mandate tax is only one of Obamacare’s 18 new or increased taxes and penalties that will cost Americans $836 billion over the next 10 years.

    Posted in Featured, Obamacare, Scribe [slideshow_deploy]

    15 Responses to Chart of the Week: Poor, Middle Class Hit by Obamacare Mandate Tax

    1. John Ziola says:

      These figures can't be right CAN THEY? After all, obuma promised and stated numerous times that odumbocare wouldn't increase taxes. Probably GWBs' fault or obumas own people are lying about these figures. Can't be that the arrogant one lied!

    2. Bobbie says:

      Word games by the democratic party is manipulation only. Obama isn't forthright and ready to blame republicans for the President's unseen to the manipulated but intentional errors in judgment. He doesn't have to suffer the consequences.

      Axelrod said the President treated us like adults as if we're children!!! Totally cutting us down!! Someone standing up with his head down isn't adult in himself! Axelrod said Mr. Romney "lied to the American people" during the debate. When someone accuses someone else a liar, it's dutiful and adult to explain where and what the lie is which democrats haven't yet, making them the liars not to trust!
      We want freedom and independence to control on our own. This democratic party is brain dead with only limited words and narrowed minds in use.

    3. And yet the Obama lovers still think socialism is a great idea? And they will vote for him again because they just refuse to WAKE UP!!!!!

    4. Jill says:

      O gooody goody goody mommy can we keep him? NOT

    5. tiliismv says:

      Will share this, wish more people could understand the realities.

    6. Chris Wilkes says:

      Please let all the people see the VIDEO of the President of the NEA stating that they are not in it for the KIDS,but they are in it for thePOWER !!!!!!!

    7. Ed Gannon says:

      "By their fruits you will know them." eg

    8. Mike, Wichita Falls says:

      "the majority of this new tax falls on the very people the law was supposed to help"

      Can this not be said of nearly all taxes or regulations?

      When the middle class cries out for relief next year, and even more so in subsequent years, guess who comes to save the day again? Big government.

      Will a President Romney defend the free market or further regulate and subsidize it in order to "save it" as did W? At least with Romney we would expect a choice between the two options; Obama will definitely propose and enact more government "solutions".

    9. Pete says:

      ..and that is how the arithmetic works out. How can it be fair that the many who cannot afford the mandated health coverage insurance rates will have to pay the tax? The "health care tax" will be as onerous as the AMT. Brilliant…

    10. Lloyd Scallan says:

      Obama looks into the camera a lies to the American people. then directs his lackeys to do exactly the same. Time and time again they are caught but not only will not stop, but increase the lies and distortions. Why? Because as one stated, they don't care how many Pinocchios they get, lies moves votes. Again, they will do or say anything to get Obama reelected.

    11. hsims says:

      Part 1 of 2- This doesn't make any sense! The middle class would only have to pay this "tax" if they do not have health insurance. If they purchase insurance through their employer then they avoid the "tax" if the buy insurance through the privately held companies that will make up the insurance exchanges, then they won't have to pay the "tax" So this tax supposedly imposed on the middle class is avoidable. This is NOT socialism. Uneducated people throw this word around and don't have an idea what it means. The actual insurance and doctors will NOT be operated or owned by the government. I for one am very happy that the middle class and poor will be required to buy health insurance. I see people buying cars >35k and hanging new 55" flat screen TVs, but cry that they can't afford health insurance. END see Part 2

    12. hsims says:

      Part 2 of 2 So, what happens when these people without an ounce of budget savvey get sick? WE, the tax payer foots the bill when they can't pay their medical bills!!! I'm done! It is a legal requirement to have car insurance if you drive a car….is that socialism too? Give me a break and stop creating lies when it comes to Obamacare. Also, the lies about Obamacare paying for illegal aliens to have insurance are exactly that, LIES. It will actually require any long term visitor to our country, legal or not to acquire health insurance, which they pay for 100% out of their own pocket…..the health care act specifically states. "No government subsidies" unless you are an American citizen. I think Obama has his faults, but the lies, half-truths, and fuzzy math are frustrating. Stop spouting what you see on far left or far right sites or hear on TV. By the way….who came up with the protoype for this affordable health care act and pushed to institute it in their state? Also, went to Washington multiple times in 2009 to create this plan? Romney? YEP!! If you don't lilke it, blame him too.

      • Jay says:

        Acutally, you're comparison to driving a car is false. That is an agreement between the individual and the state. You don't drive the car on state roads, you don't have to have insurance. This is a mandate simply because you are alive and breathing. It is fascism right now. It will be socialism when the system collapses under the new regs and the government takes over.

    13. One Tax that is also forgotten is the Huge Federal Income Tax Increase on the Working Poor. On their way to tax the rich, the US Senate Democrats left a 50% tax increase (from 10% to 15%) on the working poor. Obama had extended the tax cuts and the Republican House voted to extend it for 2013, but the Democrats voted against it. Another Tax rarely mentioned is the Social Security Tax increase of 30% (from 4.2% to 6.2%). Obama reduced it in 2012 but left its increase, on a weak economy, jump back in 2013. These two taxes will hit the most vulnerable in a weak economy. If Obama was half the president he says he is, he will recall the US Senate and prevent this Immoral Taxation upon the working poor and the devastating effects it will have upon our economy.

    14. Maureen Johnson Long says:

      The individual mandate was invented by the Heritage Foundation. Why is it so poisonous now?

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