Here Comes the Pain
Most summaries of ObamaCare focus on the benefits of reform and when they phase in. The Karen Davis summary, for example, lists only benefits — as though the entire package was one big free lunch. Benefits must be paid for, however. Here is how paying for reform phases in:
2010
- 10% tax on tanning salons
2011
- Tax on brand name drugs ($2.5 billion).
- Medicare cut $1 billion ($22 per senior/disabled)
- Medicare Advantage cut $2 billion ($195 per senior)
- Increase in tax on non-medical Health Savings Account withdrawals from 15% to 20%
- Over-the-counter drugs become taxable ($400 million)
2012
- Tax on brand name drugs increased to $3 billion.
- Medicare cut $5 billion ($112 per senior)
- Medicare Advantage cut $6 billion ($585 per senior)
- Tax on Over-the-counter drugs ($600 million)
2013
- Taxes on wage income rises from 1.45 to 2.35% for singles earning more than $200,000 a year (families above $250,000).
- New tax on investment income: 3.8% for singles earning more than $200,000 a year (families above $250,000).
- New taxes on wheelchairs and other medical devices (2.9%)
- Flexible Spending Account contributions limited to $2500 annually
- Floor for deductible medical expenses increased from 7.5% of AGI to 10%
- Medicare cut $9 billion ($201 per senior)
- Medicare Advantage cut $9 billion ($877 per senior)
- Tax on Over-the-counter drugs ($600 million)
2014
- Individual Mandate: fine: $95
- Employer Mandate: fine: $2,000 per-worker
- Medicare cut $13 billion ($290 per senior)
- Medicare Advantage cut $13 billion ($1,267 per senior)
- Tax on Over-the-counter drugs ($600 million)
- Tax on health insurers ($6.1 billion)
Ouch. I’m feeling the bite already.
Thanks for telling us the rest of the story.
You missed the 40% Cadillac tax in 2018 (2013 if reconciliation does not pass).
Also these taxes are not indexed, so better hope your salary never goes up!
Did I miss something? I thought that Obamacare was supposed to make health care cheaper. Why are they taxing OTC and prescription drugs?
Cigarettes? Sure. Booze? Sure. Tanning? Go ahead.
But a bottle of aspirin? Are you trying to get Americans to stop taking their meds, Mr. Obama?
And why on EARTH would we limit people’s FSA contributions? Ah yes. That’s because a government health system is no good if its citizens have enough money to pay for their own medical care.
Paul, this is only the first five year’s of pain. There is a lot more pain that follows.
I’m 75, wonder when they plan on euthanasing me?
WOW I’m totally against this bill for freedom reasons but this is really and eye opener like I haven’t seen before….
joan m. in the netherlands if your over 50 you may not come out of the hospital, so your way past due euthanasing. don’t get sick!!!
The New York Times is just as bad as Karen Davis. So are the other major newspapers. They are all publishing expected benefits and ignoring the costs.
My only hope is that America can hold on until we can get this man and all his goons out of Washington. Forget socialism, we’re headed straight for communism. If you don’t believe that, check out all his friends and their radical beliefs. His wife is enamored with Cloward/Piven and their aim was to crash the system so you could have a government take-over. I think obama thinks he will be president for life. God help us!!
For all concerned people please do the following things: 1. please vote this year 2. please DO NOT vote for democrats at any level…even if they personally support obamacare many will probably give some sort of support (either voting or financial) to other democrat politicians who do support gov’t healthcare (e.g. some of the democrats in the House that didn’t vote for the healthcare bill still had voted for nancy pelosi as speaker of the house a few years earlier) 3. vote Republican but with one crucial condition…they must clearly, without any confusion, support the repeal of gov’t healthcare and its replacement with market-based reforms. If any GOP candidate seems hesitant about that, then tell them you not voting nor supporting them. 4. Support those candidates and organizations who are in favor of repeal by not only voting for them but contributing time and/or money. 5. Talk to anyone you know about the upcoming costs of gov’t healthcare – join facebook and link this article, talk to neighbors or coworkers, etc.
Oops, I might to say for #2 that even if a democrat does NOT support gov’t healthcare