Obamacare New Taxes Equal Sequester Spending Cut – Chriss W. Street - InvestingChannel

Obamacare New Taxes Equal Sequester Spending Cut – Chriss W. Street

On Friday, March 1st, Congress allowed the much-hyped and much-dreaded $1.2 trillion of ten year spending cuts from the budget “sequester” to take effect instead of raising taxes, except it didn’t happen!� It took President Obama and his staff another day of searching through the White House pen collection before they could find President Harry Truman pen he used in 1948 the last time the Federal government actually signed a spending cut into law. � But before the ink dried on President’s sequester signature, tax revenue magically appeared.� The� Joint Congressional Committee on Taxation released a� 96 page report� from the non-partisan Congressional Budget Office estimating expected ten year revenue from Obamacare’s 21 tax increases has doubled from $569 billion to $1.058 trillion.� Proving once again that for the American taxpayer, danger lurks around every corner of Congress. The Washington D.C. frenzy in the run-up to the budget sequester reminded me of a movie scene when the Ghostbusters warn the mayor that New York City that if he doesn’t let them do their thing, the city is headed for a disaster of Biblical proportions: � � � Dr. Stantz: Fire and brimstone coming down from the skies! Rivers and seas boiling! Dr. Spengler: Forty years of darkness! Earthquakes, volcanoes… Winston Zeddemore: The dead rising from the grave! Dr. Venkman: Human sacrifice, dogs and cats living together… mass hysteria! Despite 10 years of sequester trillion dollar spending cuts and Obamacare’s trillion dollar tax increases, . The Census Bureau’s recently put out a report, which was hailed by the proponents of Affordable Care Act (Obamacare) that recorded a net decrease of 1.3 million in uninsured people since the passage of the bill.� But the reported drop only reflects increases in government insurance, including 2 million newly insured under Medicare merely by aging, and another 2 million joining Medicaid.� Without more insured by government, it would appear that Obamacare has already caused at least 700,000 more people to lose healthcare.� Furthermore, the expected 20% increase in annual healthcare premiums this year and another 15% next year will cause thousands of small business to terminate healthcare benefits and move workers to part-time status. According to Forbes Magazine, The Obamacare medical device tax on revenues, not just profits, is estimated to cause more than . � Boston Scientific has estimated their taxes will rise by more than $100 million a year, so they built a $35 million research center in Ireland and announced another $150 million site in China.� Stryker� of Michigan cut of 1,000 workers last November “in advance of the new Medical Device Excise Tax.” � Cook� Medical� of Indiana scrapped plans to open five new plants in the Midwest, while saying “in reality, we’re not looking at the U.S. to build factories anymore as long as this tax is in place.” At the inception of Obamacare, then Speaker Nancy Pelosi said Congress had to “pass the bill so you can find out what is in it.” � Mostly what we have now found lurking in Obamacare’s 2,700-pages are less healthcare and more taxes. CHRISS STREET & PAUL PRESTON Present “The American Exceptionalism Radio Talk Show” Streaming Live Monday through Friday at 7-10 PM Follow Blogs: www.chrissstreetandcompany.com & www.agenda21radio.com Click here to listen: http://www.ustream.tv/channel/american-eceptionalism-news OBAMACARE TAX INCREASES Provision 2010 Estimate, � 2010-2019, $billion 2012 Estimate, � 2013-2022, $billion 0.9% payroll tax on � wages and self-employment income and 3.8% t tax on dividends, capital gains, � and other investment income for taxpayers earning over $200,000 (singles) / � $250,000 (married) 210.2 317.7 “Cadillac tax” on � high-cost plans * 32 111 Employer mandate * 52 106 Annual tax on � health insurance providers * 60.1 101.7 Individual mandate � * 17 55 Annual tax on drug � manufacturers/importers * 27 34.2 2.3% excise tax on � medical device manufacturers/importers* 20 29.1 Limit FSAs in � cafeteria plans * 13 24 Raise 7.5% AGI � floor on medical expense deduction to 10% * 15.2 18.7 Deny eligibility of � “black liquor” for cellulosic biofuel producer credit 23.6 15.5 Codify economic � substance doctrine 4.5 5.3 Increase penalty � for nonqualified HSA distributions * 1.4 4.5 Impose limitations � on the use of HSAs, FSAs, HRAs, and Archer MSAs to purchase over-the-counter � medicines * 5.0 4 Impose fee on � insured and self-insured health plans; patient-centered outcomes research � trust fund * 2.6 3.8 Eliminate deduction � for expenses allocable to Medicare Part D subsidy 4.5 3.1 Impose 10% tax on � tanning services * 2.7 1.5 Limit deduction for � compensation to officers, employees, directors, and service providers of � certain health insurance providers 0.6 0.8 Modify section 833 � treatment of certain health organizations 0.4 0.4 Other Revenue � Effects 60.3 222** Additional � requirements for section 501(c)(3) hospitals Negligible Negligible Employer W-2 � reporting of value of health benefits Negligible Negligible Total Gross Tax � Increase: 569.2 1,058.3 * Provision targets � households earning less than $250,000. ** Includes CBO’s � $216.0 billion estimate for “Associated Effects of Coverage Provisions on Tax � Revenues” and $6.0 billion within CBO’s “Other Revenue Provisions” category � that is not otherwise accounted for in the CBO or JCT estimates. Source: Joint � Committee on Taxation Estimates, prepared by Ways and Means Committee Staff