12/26/2012

Happy New Year! Tax Hikes Kick In on January 1st for ALL Americans

Posted by Brian

Full List of Obamacare Tax Hikes:

Coming January 1st Americans are going to see some significant, (and some not-so-significant) changes to their tax burdens. At the stroke of midnight on January 1st, ObamaCare kicks in, and with it comes 20 new taxes (for starters) on unsuspecting Americans.


These new taxes do not include the ever-looming tax hikes which will hit every American if legislation is not passed to address the "fiscal cliff", which will trigger an automatic tax increase on every American, automatic across-the-board cuts to spending.  Tax increases will include sunsetting of the Bush Tax cuts, shifts in the Alternative Minimum Tax (AMT), which will increase taxes even more for many Americans. Married couples making less than $75K would be subject to the AMT, while single earners making less than $49K would be penalized with tax rate of 26-28%.  In addition deep cuts would automatically be triggered for over one thousand government programs including Medicare and Defense.

Tax Hikes Looming after Jan. 1st:

Surtax on Investment Income  ($250K Married, $200K Single) - 3.8% increase , meaning tax rates for the following investments: Capital Gains - 23.8%  Dividends - 43.4%  Other - 43.4%

Medicare Payroll Tax:  Employees making over $200K will see their payroll tax increase from 1.45% to 2.35%. Self-employed will increase from 2.9% to 3.8%.

Individual Mandate for ObamaCare: (Takes effect Jan 2014):  For anyone not purchasing a health plan, a 1% penalty on your Adjusted Gross Income in 2014 will take effect, increasing in 2015 to 2%. Exemptions to this include religious objectors (i.e Muslims under Sharia Law), illegal immigrants (convenient), people in prison, members of Indian tribes, and hardship cases as determined by HHS.

Tax on insurers:  Penalty based tax to be imposed on Health Insurers calculated on profits.

40% Excise Tax on So-called "Cadillac" health plans.

2.3% Excise Tax on the makers of medical devices, such as wheel chairs, prosthetic limbs, etc.  Getting old and need a wheelchair? Sorry, but it's going to cost you more to be mobile.

High Medical Bills Tax:  Getting old and needing more medicines, surgeries or trips to the doctor?  If you're expenses exceed 10% of your gross income, you can no longer deduct those expenses.  These expenses are waived for those 65 and older until 2013.  So compassionate.  What did they say about "Death Panels?

"Special Needs Kids Tax" - If you are a parent with a special needs child you can now use only  $2500 of your Flexible Spending Account to pay for programs like schools that provide special needs education, some of which easily exceed $14K a year. Guess it's more cost effective to institutionalize them.

Medicine cabinet tax - Like to use your Health Savings, Flexible Spending, or Health Reimbursement Accounts to purchase over-the counter medications?  Forget it,.  It's not allowed, except for insulin.

Are you a Medicare Part D recipient?  Your tax deduction for prescription drugs was just eliminated.  Happy New Year.

This is just the beginning folks.  Your "free" health coverage is going to cost you plenty.  Those poor people who are without health coverage (which was a myth anyway, as acute care at hospitals was mandated by law, and programs like Medicaid are available for those who couldn't afford health coverage, and weren't old enough for Medicare), like illegal aliens won't be covered, and are exempt anyway.

What Obamacare does provide is the means for the government to insert itself, incrementally of course, into every single aspect of your life, as nearly everything from what you eat and drink, to what kind of lifestyle you choose to live, can all fall under healthcare.

Your life is getting ready to change in a big way, and not for the better.




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