Do you remember Nancy Pelosi saying, in the days leading up to the House’s dramatic late-night passage of ObamaCare, that “We have to pass the bill so that you can find out what is in it”?
Now that the bill is law, it is slowly dawning on us what the new law means for our already strained bank accounts. Every day we discover yet another tax buried in the 2,700-page ObamaCare bill law. Here’s the latest:
ObamaCare will impose a 3.8% tax on all home sales and other real estate transactions, not just on families making more than $250,000 a year — which was what Obama famously promised during the ’08 presidential campaign.
In addition to the home sales tax, there are at least 18 other taxes. As enumerated by Paul Guppy of the Washington Policy Center in The Spokesman-Review on March 28, 2010, some of the other taxes are:
- Penalties on individuals. Individuals will pay a yearly penalty of $695, or up to 2.5% of their annual income, if they cannot show they have purchased a government-approved health policy.
- Penalties on families. Families will pay a yearly penalty of $347 per child, up to $2,250 per family, if parents cannot show they have purchased a government-approved policy.
- Penalties on employers. Business owners with more than 50 employees must buy government- acceptable health coverage or pay a yearly penalty of $2,000 per employee if at least one employee receives a tax credit.
- Tax on investment income. ObamaCare imposes a 3.8% annual tax on investment income of individuals making $200,000 or more and on families making $250,000 or more. The new tax is not indexed to inflation, so more people will fall under it each year. Seniors on fixed incomes and people with IRAs and 401(k) plans will be hit particularly hard.
- Tax on “Cadillac” health plans. Starting in 2018, imposes a 40% annual tax on health care plans valued at $10,200 for individuals and $27,500 for families.
- Medicare tax increase. Requires single people earning $200,000 or more and couples earning $250,000 or more to pay an additional 0.9% in Medicare taxes.
- Tax on medical aid devices. Creates a new 2.9% tax on medical aid devices. Certain items intended for personal use are exempt.
- Tax on tanning. Imposes a 10% tax on services at tanning salons. Business owners will collect the tax from customers and send it to the federal government. This appears to be the first federal sales tax in the United States.
Some other “goodies” in Obamacare:
- We begin paying ObamaCare taxes this year although most “benefits” don’t start until 2014!
- Obama had said people could keep their coverage if they want, yet the Congressional Budget Office estimates that under ObamaCare 8 million to 9 million people will lose their employer-provided coverage.
- Despite it being sold to us that only Obamacare can ensure universal health coverage, that is not true. As an example, ObamaCare will leave about 6% of Washington state’s residents without coverage.
- ObamaCare will be enforced by an even more powerful IRS, which plans to hire 16,500 new auditors, agents and investigators — all the better to increase enforcement audits. The IRS can confiscate tax refunds, place liens on property and seek jail time if health-related penalties and taxes are not paid.
H/t beloved Fellowship member May!