All The OTHER Stuff Wrong With ObamaCare

28 June 2012

As Team Obama and Democratic leaders spike the football, spit in Liberty’s face, and tell us “It’s constitutional, bitches!”, we need to take a trip in the way-back machine to when when they rammed this pig down our throats in the Summer of 2009, whatwas the big hurry with having to have it on his desk by August recess? 

Besides his obviously eroding public support and tanking poll numbers, another reality behind that sense of urgency was betrayed by how the President -per usual- was so selective injust what he wanted you to know about in this monstrous bill… and to the point of intentionally misleading the public.

See for yourself why Obama didn’t want legislators, the media, or God-forbid the public actually reading until it was rammed-through…

Pg 1018 States forfeit some of their state sovereignty… and toyou know who.

Pgs 1003 9-11 National Med Dev Reg ‘‘(iii) other postmarket device surveillance activities” In other words, you WILL be tracked.

Pg 1001 The Govt will establish a National Medical Device Registry. More tracking?
Pg 994 School Based Health Clinic will be integrated into the school environment. Can you say brainwash?
Pg 993 Govt will establish school based health clinics… your kids won’t have a chance.
Pg 950- 980 BIG GOVT core public health infrastructure, incl workforce capacity, lab systems; health info sys, etc
Pg 942 Lines 22-25 More BIG Govt? Offices of Surg. Gen. -Public Health Svc, MinorityHealth, Women’s Health
Pg 936 Govt will develop “Healthy People and National Public Health Performance Standards” So they’re going to tell me what to eat?
Pg 935 21-22 Govt will identify specific goals and specific objectives for prevention and wellness activities. More control…
Pg 932 The Govt will estab Preventative & Wellness Trust fund- intial cost of $30,800,000,000-that’s thirty BILLION.
Pg 915 SEC. 2251. Govt MANDATES Cultural & linguistic competency training for HC professionals.
Pg 913-914 Govt starts a HC affirmative action programthrough the guise of “diversity scholarships.”
Pg 910 The Govt will develop, build and run Public Health Training Centers.
Pg 901 The Public Health Workforce Corps WILL incl commissioned Regular and Reserve Officers. HC draft next???
Pg 900 The Public Health Workforce Corps includes veterinarians
Pg 898 The Govt will establish a Public Health Workforce Corps. 2 ensure supply of public health prof.
Pgs 876-892 The govt takes over the education of our Medical students and Docs
Pgs 865 to 876 The NHS Corps is a program where Drs. perform mandatory HC for 2yrs for part loan repayment
Pg 865 The Govt will MANDATE the establishment of aNational Health Service Corps
Pg 859 Govt will establish a Public Health Fund at a cost of $88,800,000,000. Yes, thats Billion.
Pgs 844-845 OMG! This Home Visitation Prog. includes Govt coming into your house and telling us how to parent our children!
Pgs 838-840 Govt will design and implement Home Visitation Program for families w/ young kids.. and families expecting kids.
Pgs 835 11-13 fees imposed by Govt for Trust Fund shall be treated as if they were incremental taxes… which of course, they are.
Pgs 829-833 Govt will impose a fee on ALL private health insurance plans incl. self insured… to pay for Trust Fund, of course. This will make these companies uncompetitive with the Federal option… leading to the single-payer system Obama now denies is part of his agenda.
Pg 810 SEC. 1759. Billing Agents, clearinghouses, etc required to register. Govt takes over private payment system.
Pg 801 Sec 1751 The Govt will decide which Health care conditions will be paid. This means RATIONING… what elseto expect from a plan short millions of doctors?
Pg 789-797 Govt will set/mandate drug prices, controlling which drugs brought to market. Bye-bye American pharmaceutical innovation  Stuff Wrong With ObamaCare
Pg 770 SEC 1714 Fed Govt mandates eligibility for State Family Planning Svcs…. meaning government-funded abortions and further erosion of states’ sovereignty.
Pg 769 3-5 Nurse Home Visit Svcs – “increasing birth intervals between pregnancies.” Govt ABORTIONS recommended…?
Pg 769 11-14 Nurse Home Visit Svcs include-economic self-sufficiency, employer ad., school-readiness. Huh?!!
Pg 768 Sec 1713 Govt – Nurse Home Visitation Svcs (smells like more union paybacks)
Pg 765 Sec 1711 Govt will require Preventative Services including vaccines. (Choice?)
Pg 757-762 Fed govt will shift burden of payments to “Disproportionate Share Hospitals” (DSH) to States. (and taxes)
Pgs 740-757 Govt sets guidelines for subsidizing the uninsured (Thats YOUR tax dollars, people…)
Pg 735 lines 16-25 For law enforcement purposes the Secretary-HHS will give Atty General access to ALL data.
Pgs 724 23-25/ Pg 725 1-5 The same Govt certifications will apply to Medicaid & CHIP (that means your kids)
Pg 722 Sec 1639 Govt MANDATES Doctors to have face-to-face w/patient to certify patient for any Home Health Svcs.
Pg 711 Lines 8-14 The Secretary has broad powers to deny HC providers/suppliers admittance into the HC Exchange.

Pgs 686-700 Increased Funding to Fight Waste, Fraud, and Abuse.
(LOL, they mean the same Govt w/ an $18 mil Obama-propaganda website?)
Pg 676-686 Govt will regulate hospitals in EVERY aspect of residency programs, incl. teaching hospitals.
 
Pgs 660-671 Doctors in Residency – Govt will tell U where your residency will be, thus where you’ll live.
Pgs 635 to 653 Physicians Payments Sunshine Provision – Govt wants to shine sunlight on doctors… but not government.
Pgs 633 14-25/ 634 1-9 The Secretary may issue non-endorsed “Quality Measures” for Physician and Dialysis Svcs.
Pg 632 Lines 14-25 The Govt may implement any “Quality measure” of HC Services as they see fit.
Pgs 630 9-24/631 1-9 Those multi-stake holder groups incl. unions and other groups like ACORN deciding HC quality… to be dictated from above, of course
Pg 628 Sec 1443 Govt will give these same “Multi-Stake Holders” Pre-Rule Making input into Selection of “Quality” Measures
Pg 624 “Quality” measures shall be designed to profile you… including race, age, gender, place of residence, etc.
 
Pg 624 “Quality” measures shall be designed to assess outcomes and functional status of patients.
 
Pg 622 Lines 2-9 To pay for the “Quality Standards”, the governmentt will transfer money from two other govt trust funds…. meaning more taxes.
 
Pg 621 Lines 20-25 Bureacrats will define what “quality” means in HC. Since when does Govt know about quality?
 
Pg 524 , Lines 18-22 Comparative Effectiveness Research Trust Fund set up… more taxes for ALL.
 
Pg 518 Lines 21-25 The Commission will have input from HC consumer reps – Can u say unions and ACORN yet again?
Pg 506 Lines 19-21 The Center will recommend policies that would allow for public access of data.
Pg 504 Lines 6-10 The “Center” will collect data both published and unpublished (that means public and your private info).
 
Pg 503 lines 21-25 Govt may secure data directly from any department or agency of the US.. including your data.
Pg 503 Lines 13-19 Govt will build registries and data networks from YOUR electronic medical records.
 
Pg 502 Sec 1181 Center for Comparative Effectiveness Research established. – Hello Big Brother – literally.
 
Pg 494-498 Govt will cover Mental Health Svcs including defining, creating, rationing those svcs.
 
Pg 489 Sec 1308 The Govt will cover Marriage and Family therapy. Which means they will insert Govt into YOUR marriage… a Bolshevik’s dream-come-true.
 
Pg 476 19-20 Chapter 35/ title 44, (Privacy of personal records) shall not apply to Home Med Svcs. ACORN ACCESS!
Pg 469 – Community Based Home Medical Services=Non profit orgs. Hello, ACORN Medical Svcs here!!?
Pg 460 Sec 1302 – Knock Knock – It’s the Govt, and I’m here with the Medical Home Program – in YOUR home
 
Pg 448, Lines 4-17 Govt will set performance targets for ALL Accountable Care Organizations… including all private ones. And as they will control the consolidated payment system… they will control the organizations completely.
 
Pg 444 Lines 1-6 Gov’s Accountable Care Program will mandate services and infrastructure thru reward/penalty system.
Pg 443 Lines 7-24 Government -at taxpayers expense- test out an “Accountable Care Org” program (becuase the Gov’t does not have a plan yet).
Pg 438 Sec 1236 – The Govt will develop a patient decision-making aid program that you and your doctor WILL use… it’s mandated.
 
Pg 434 Section 1234 Military Active, Reservists, Families – Once HC bill is passed their premiums will go up.
 
Pg 432 Lines 18-21 The Govt will publish “quality measures” for each individual’s end-of-life in Federal Register.
 
Pg 430 Lines 11-15 The Govt will decide what level of treatment you will have at end-of-life.
 
Pg 429 Lines 13-25 – The govt will specify which Doctors can write an end-of-life order. Logan’s Run anyone?
Pg 429 Lines 10-12 “adv. care consultation” may include an ORDER for end of life plans. AN ORDER from a faceless bureaucrat- just as Sarah Palin warned you about.
Pg 429 Lines 1-9 An “adv. care planning consult” will be used frequently as patients health deteriorates.
Pg 427 Lines 15-24 Govt mandates program for orders for end-of-life. The Govt has a say in how your life ends with ObamaCare.
 
Pg 425 Lines 22-25, 426 Lines 1-3 Govt provides apprvd list of end of life resources, guiding you in death from on-high… and it will have NOTHING to do with God
 
Pg 425 Lines 17-19 Govt will instruct and consult regarding living wills, durable powers of atty. This will be Mandatory
 
Pg 404 Lines 12-16 Govt exempts itself again from – Chap 35 of title 44, USC incl. privacy of Americans.
 
Pg 401, Sec 1221 Americans will fund Medicare Language and Translation Svcs Program. Can u say MORE taxes?
Pg 399 – If ur a subsidy-eligible individual under Medicare part D and dont enroll, the Govt will auto-enroll you.
Pg 379 Sec 1191 Govt creates more bureaucracy – Telehealth Advisory Cmtte- basically HC by phone-
Pg 355-369 Sec 1181 Govt disguises tax on pharmaceutical firms as rebate to Govt to subsidize Drugs. We pay in the end. (as Reagan said: business don’t pay taxes… people do)
Pg 354 Sec 1177 – Govt will RESTRICT enrollment of Special needs people! NOW do you see what else Sarah Palin was trying to tell you…?
Pg 341 Lines 3-9 Govt has authority to disqualify any and all Medicare Adv Plans, HMOs, etc… bankrupting these businesses, and forcing peeps into a “single payer” system like Obama now denies as his agenda. (numerous videos show him saying otherwise)
Pg335, L 16-25/Pgs 336-339 – Govt mandates establishment of outcome based measures. HC the way they want… and with rationing.
 
Pg 328, Sec 1157 Goverment study disguised- actually a HC workforce study mandated by law for unionization
 
Pg 321 Hospitals have opportunity to apply for exception… BUT “community” input required. Can u say ACORN?!!
Pg 318-319 – Govt is mandating how ALL hospitals and physicians conduct business/ investments. SAME as with GM, banks, etc…. and WE’RE NEXT
 
Pg 317-318 lines 21-25,1-3 PROHIBITION on expansion- Govt is mandating hospitals cannot expand.
Pg 317 L 13-20 PROHIBITION on ownership/investment. Govt now tells doctors what/how much they can own!
 
Pg 304 L 17-19- a BIG ONE: Expedited Data Collection – more here
 
Pg 303 L 12-25 Post Acute Care Svcs Data – Govt will collect data including personal info as they see fit.
 
Pg 298 Lines 9-11 Doctors who treat a patient during initial admission that results in a readmission… then the Govt will penalize them.
Pg 287 Line 14-25- all the PROOF you need that Govt will ration HC by mandating waiting periods for readmission- regardless of what they are now telling you.
 
Pg 272 SEC. 1145. Treatment of Certain Cancer Hospitals – Cancer patients, welcome to rationing
Pg 270 Sec 1144 Govt Mandates that all private ambulatory surgical centers submit cost and other data
Pg 268 Sec 1141 Fed Govt regulates rental and purchase of power driven wheelchairs.
Pg 265 Sec 1131 Govt mandates and controls productivity for private HC industries.
Pg 260 Sec 1125 HC Fed Govt will adjust Medicare Payment Localities for California based on 2010 census… ACORN again?
 
Pg 253 Line 10-18 Govt sets value of Doctor’s time/professional judgement/etc. 
Literally, the value of humans… who’s next?
 
Pgs 238-249 Sec 1121 Doctors-Govt mandates your growth, costs, value, services… and inccome. And that means rationing
Pg 239 Line 10-12 Medicare DSH payments will be increased… higher taxes for all
Pg 236 Line 22-25 Pg 237 Line 1-3 National rate of uninsured defined by US Census… more ACORN corruption?
Pg 241 Line 6-8 HC Bill – Doctors, it no longer matters what specialty you have, you’ll all be paid the same… socialism… and we’ll have less specialists as a result.
Pg 239 Line 14-24 Govt will reduce physician services for Medicaid- Seniors, low income, poor most affected.
Pgs 202-215 Govt rewrite of the tax code ensuring more taxes for EVERYONE.
PG 203 Line 14-15 – “The tax imposed under this section shall not be treated as tax”- yes... it actually says that.
Pgs 201 Lines 12-19– Govt will ignore whatever costs they see fit, simply in-order to show savings. (otherwise known as cooking the books)
Pg 199 Lines 1-4 HC surtax rates to be raised AGAIN on Americans in 2012.
Pg 198 lines 4-6 +5.4% ADDITIONAL TAX on those who have income of $1 M+. Of course, another redistribition and penalty for being successful… absolutely un-American
Pg 198 lines 1-3 HC +1.5% ADDITIONAL TAX on peeps who have income of $500k to $1M… more of the same from our Bolshevik-in-Chief.
Pg 195 Officers and employees of HC Admin (Govt) will have full access to ALL Americans financial and personal records- nice, huh?
Pg 170 Lines 1-3 Any NON-RESIDENT Alien is exempt from indivual taxes. (while actual Americans will have to pay- or face penalties)
Pg 167 Lines 18-23 ANY individual who doesnt have acceptable HC plan –according to the US government– will be taxed 2.5% of income.
Pg 146 Lines 22-25 Employers MUST pay for HC for part time employees AND their families.
Pg 145 Line 15-17 An Employer MUST auto-enroll employees into public option plan… there is to be NO CHOICE.
Pg 129 The public option will be heavily subsidized, with the credits coming from YOUR tax dollars… yet another stealthy redistribution of wealth.
Pg 127 Lines 1-16 – Doctors – the Govt will tell YOU what you are allowed to make… this after 12 years of medical school!
Pg 126 lines 10-15– The Govt can make-up prices for anything- at anytime- and for any reason.
Pg 124 lines 24-25 No company can sue GOVT for price fixing. No “judicial review” against this ludicrous Govt monopoly provided, either.
Pg 119 HC Bill Lines 1-3 Establishes geographically-adjusted premiums/rates for the public option- based on ACORN census numbers, of course.
Pg 111 Sec 208 The Federal Govt will usurp ALL state powers in HC exchange… a blatant violation of the 10th Amendment of the US Constitution.
Pg 110 Lines 13-18 An excise tax on ALL goods from companies not offering Govt HC…. ALL Americans pay.
Pg 110 Lines 7-12 Employment taxes on ALL employers NOT offering Govt HC. No choice.
Pg 109 Sec 207 – Health Trust Fund: The Govt will raise taxes on EVERYONE to fund HC… and as they see fit.
Pg 102 Lines 12-18 – Medicaid Eligible Individuals will be automatically enrolled in Medicaid… No choice
Pg 98 HC Bill Line 8 – Americans will be paying for others’ HC- while also paying for their own.
Pg 95 HC Bill Lines 8-18 The Govt will use left-leaning groups like ACORN and Americorps to sign-up indivuals for the national public option.
Pg 85 Line 7 – Specifics of Benefit Levels for Plans = The Govt will ration your healthcare, regardless of what they’re telling you now.
Pg 84 Sec 203– Govt mandates ALL benefit packages for PRIVATE HC plans in The Exchange.
Pg 72 Lines 8-14 Govt is creating an HC Exchange to bring private HC plans under Govt control.
Pg 65 Sec 164 is a payoff subsidized plan for retirees and their families in unions and community organizations (still more ACORN).
Pg 64 lines 21-25, pg65 lines 1-5 which refers to this:http://www.ssa.gov/OP_Home/ssact/title11/1179.htm
Pg 61 HC Bill lines 22-24 Congress has no clue what electronic medical records will cost… and asks for an estimate.
Pg 59 HC Bill lines 21-24 Govt will have direct access to your bank accounts for EFTs- great
Pg 58– Govt will have real-time access to individuals’ finances… and a National ID Healthcard will be issued! Perhaps a bar-code on your arm next, or…?
Pg 50, Section 152 – HC will be provided to ALL non-US citizens, illegal or otherwise…. period. Stuff Wrong With ObamaCare
Pg 42 Health Choices Commissioner will choose your HC Benefits for you… you have no choice in the matter.
Pg 37 Sec 132 – The Govt will be reviewing grievances about themselves… and will decide on appeals for rejected claims. Expect the same result as Obama’s “internal investigation” into who on his staff may have been talking to Blagojevich… what a charade.
Pg 24 Sec 116 Govt effectively sets prices for ALL private health plans. Who could possibly think this a good idea… except for someone trying to drive them out of business…?
Pg 22 of the HC Bill MANDATES the Govt will audit books of ALL EMPLOYERS that self insure.  Stuff Wrong With ObamaCare


My source is the White House Pdf posted August 2009, since removed…

Obamacare fee of $63 per person to begin in 2014

By Ricardo Alonso-Zaldivar

Associated Press

Monday, December 10, 2012

Your medical plan is facing an unexpected expense, so you probably are, too. It’s a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Obama’s health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a “sleeper issue” with significant financial consequences, particularly for large employers.

“Especially at a time when we are facing economic uncertainty, [companies will] be hit with a multimillion-dollar assessment without getting anything back for it,” said Mr. Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program “is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all,” the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to “contributions” without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Mr. Obama’s expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don’t provide coverage.

“This kind of came out of the blue and was a surprisingly large amount,” said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Ms. Young, but hard cost estimates surfaced only recently with the new regulation. It set the per-capita rate at $5.25 per month, which works out to $63 a year.

America’s Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in the Obama law take effect.

But employers already offering coverage to their workers don’t see why they have to pay into the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

“It just adds on to everything else that is expected to increase health care costs,” said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all “major medical” insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That’s because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend the fees.

Read more: http://www.washingtontimes.com/news/2012/dec/10/obamacare-fee-of-63-per-person-to-begin-in-2014/?page=2#ixzz2Et7IV3lE
Follow us: @washtimes on Twitter

Read more: http://www.washingtontimes.com/news/2012/dec/10/obamacare-fee-of-63-per-person-to-begin-in-2014/#ixzz2Et748fuh
Follow us: @washtimes on Twitter

New Taxes to Take Effect to Fund Health Care Law

By 

Published: December 8, 2012

WASHINGTON — For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.

The new levies, which take effect in January, include an increase in thepayroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.

Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.

To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly.

The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law.

Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold.

Since the creation of Social Security in the 1930s, payroll taxes have been levied on the wages of each worker as an individual. The new Medicare payroll is different. It will be imposed on the combined earnings of a married couple.

Employers are required to withhold Social Security and Medicare payroll taxes from wages paid to employees. But employers do not necessarily know how much a worker’s spouse earns and may not withhold enough to cover a couple’s Medicare tax liability. Indeed, the new rules say employers may disregard a spouse’s earnings in calculating how much to withhold.

Workers may thus owe more than the amounts withheld by their employers and may have to make up the difference when they file tax returns in April 2014. If they expect to owe additional tax, the government says, they should make estimated tax payments, starting in April 2013, or ask their employers to increase the amount withheld from each paycheck.

In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.” However, the law does not provide for the money to be deposited in a specific trust fund. It is added to the government’s general tax revenues and can be used for education, law enforcement, farm subsidies or other purposes.

Donald B. Marron Jr., the director of the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, said the burden of this tax would be borne by the most affluent taxpayers, with about 85 percent of the revenue coming from 1 percent of taxpayers. By contrast, the biggest potential beneficiaries of the law include people with modest incomes who will receive Medicaid coverage or federal subsidies to buy private insurance.

Wealthy people and their tax advisers are already looking for ways to minimize the impact of the investment tax — for example, by selling stocks and bonds this year to avoid the higher tax rates in 2013.

The new 3.8 percent tax applies to the net investment income of certain high-income taxpayers, those with modified adjusted gross incomes above $200,000 for single taxpayers and $250,000 for couples filing jointly.

David J. Kautter, the director of the Kogod Tax Center at American University, offered this example. In 2013, John earns $160,000, and his wife, Jane, earns $200,000. They have some investments, earn $5,000 in dividends and sell some long-held stock for a gain of $40,000, so their investment income is $45,000. They owe 3.8 percent of that amount, or $1,710, in the new investment tax. And they owe $990 in additional payroll tax.

The new tax on unearned income would come on top of other tax increases that might occur automatically next year if President Obama and Congress cannot reach an agreement in talks on the federal deficit and debt. If Congress does nothing, the tax rate on long-term capital gains, now 15 percent, will rise to 20 percent in January. Dividends will be treated as ordinary income and taxed at a maximum rate of 39.6 percent, up from the current 15 percent rate for most dividends.

Under another provision of the health care law, consumers may find it more difficult to obtain a tax break for medical expenses.

Taxpayers now can take an itemized deduction for unreimbursed medical expenses, to the extent that they exceed 7.5 percent of adjusted gross income. The health care law will increase the threshold for most taxpayers to 10 percent next year. The increase is delayed to 2017 for people 65 and older.

In addition, workers face a new $2,500 limit on the amount they can contribute to flexible spending accounts used to pay medical expenses. Such accounts can benefit workers by allowing them to pay out-of-pocket expenses with pretax money.

Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.

Peter Ferrara, Contributor

I cover public policy, particularly concerning economics.

OP/ED
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12/06/2012 @ 9:58AM |40,699 views

Why America Is Going To Miss The Bush Tax Cuts

US President Barack Obama (L) and former Presi...US President Barack Obama (L) and former President George W. Bush . (Image credit: AFP/Getty Images via @daylife)

President Obama seems to have a strategy to terminate all of the Bush tax cuts, not just those for “the rich,” as he has been saying since 2008.  He is offering the Republicans exactly zero concessions in the “fiscal cliff” negotiations.  No spending cuts, no entitlement reform, no compromise on the rates.  It is entirely my way or the highway, and if the Republicans refuse to do everything exactly as he demands, he will let the Bush tax cuts expire entirely, for the middle class and working people as well as the upper incomes, and blame the Republicans for refusing to go along with him, and for the economic results.

It is a cynical game worthy of an undeveloped, third world country, not theUnited States of America.  But this is just one more reason, with many more to come, for the American people to regret the mistake they made on Election Day.

Because so many major media institutions, like theNew York Times and the Washington Post, have been so duplicitous and dishonest in discussing the Bush tax cuts, most Americans don’t know much about them, even though they have been living with them for 10 years or more now.  Indeed, most of what they think they know is not true.  But the American people will understand them better, when they see what life is like without them.

President Bush and his Congressional Republican majorities at the time cut taxes for everyone in the 2001 and 2003 tax cuts.  Indeed, they cut more for lower and middle income taxpayers than they did for “the rich,” as Obama calls the nation’s job creators, investors, and successful small businesses.  The top tax rate was cut by only 13%, while the lowest rate was cut by one-third, 33%.

According to official IRS data, the top 1% of incomeearners paid $84 billion more in federal income taxes in 2007 than in 2000 before the Bush tax cuts were passed, 23% more.  The share of total federal income taxes paid by the top 1% rose from 37% in 2000, before the Bush tax cuts, to 40% in 2007, after the tax cuts.

In contrast, the bottom half of income earners paid $6 billion less in federal income taxes in 2007 than in 2000, a decline of 16%.  The share of federal income taxes paid by the bottom 50% declined from 3.9% in 2000 to 2.9% in 2007.

The Bush tax cuts also included a doubling of the child tax credit from $500 per child to $1,000 per child.  Because of that, and the 33% cut in the bottom tax rate, nearly 8 million more people dropped off the federal income tax rolls entirely, paying zero federal income taxes.  Indeed, under the Bush tax cuts, the bottom 40% of all income earners not only paid no federal income taxes, as a group on net.  By 2009, they were being paid cash by the IRS equal to 10% of all federal income taxes.

These Bush tax cuts did not explode the deficit, as Obama and his echo chamber have alleged.  By 2007, the deficit was down to $160 billion, less than 15% of Obama’s deficits today.  Total federal revenues soared from $793.7 billion in 2003, when the last of the Bush tax cuts were enacted, to $1.16 trillion in 2007, a 47% increase.  Capital gains revenues had doubled by 2005, despite the 25% capital gains rate cut adopted in 2003.  Federal revenues rose to 18.5% of GDP by 2007, above the long term, postwar, historical average over the prior60 years.  CBO was projecting surpluses to return indefinitely in 2012 through the end of its projection period in 2018.

Bush did increase federal spending as a percent of GDP by one-seventh, erasing the federal spending cuts enacted by the Republican Congressional majorities in the 1990s.  But even with that, deficits during the Bush years averaged just 2% of GDP, one-third less than the average over the prior 50 years.  President Obama’s deficits have averaged 5 times as much, at 9.1% of GDP.

The proof is in the pudding over the Bush tax cuts.  They were followed by a record 52 straight months of job creation, producing 8 million new jobs, with the unemployment rate falling to 4.4%.  Business investment spending, which had declined for 9 straight quarters, reversed and increased 6.7% per quarter, producing all those new jobs.

Because of that increased investment, labor productivity soared by 2.5% annually from 2003 to 2007, higher than the averages of the 1970s, 1980s, and 1990s.  As a result, real after tax income per capita increased by more than 11%.

Manufacturing output soared to its highest level in 20 years.  The stock market revived, creating almost $7 trillion in new shareholder wealth.  From 2003 to 2007, the S&P 500 almost doubled.   After the Bush tax cuts started in 2001, quickly ending the 2001 recession, the economy continued to grow for another 73 months.  From 2000 to 2007, real GDP grew by more than 17%, meaning an additional $2.1 trillion for the American people.

This was mostly the opposite of what President Obama has produced, with his neo-Marxist Obamanomics, particularly unemployment more than twice as high, declining middle class incomes, soaring poverty, weak job growth, stagnant stock market values, collapsing business investment, and negligible growth in GDP.

Of course, the Bush tax cut boom was ended by the 2008 financial crisis.  But as discussed in many previous columns, that was caused by the excessiveoverregulation of President Clinton’s home ownership promotion policies, creating the subprime mortgage market and the housing bubble, and by President Bush’s cheap dollar monetary policies.  Obama’s foolish argument that the Bush tax cuts caused the 2008-2009 recession is so dishonest that abusive propaganda alone should disqualify him from office.

Obama’s gleeful termination of the Bush tax cuts will produce just the opposite results of those tax cuts.  The combination of all the tax rate increases, along with Obama’s abusive overregulation, and the Fed’s continued mischief, will throw the economy back into recession next year.  Unemployment will soar back into double digits, breaking the post depression record of 10.8%.  The deficit will soar to over $2 trillion, setting new all time world records.  The national debt as a percent of GDP will gallop past Greece.

Middle class incomes will plummet further.  Poverty will soar to new all time records.

We can’t afford the Bush tax cuts, as Obama says?  We can’t afford to terminate them.  Over the past 45 years, every time the capital gains tax rate has been increased, capital gains revenues have declined rather than increased.  Obama’s nearly 60% increase in that rate will have the same effect.  After the Bush cut in taxes on dividends, dividends paid soared, and so did taxes paid on those dividends.  Obama’s near tripling of that tax will have the opposite effect as well.  Indeed, if the economy declines back into renewed recession, total federal revenues will decline rather than increase.

Obama’s ploy of blaming all of this on the Republicans will not work this time.  The public knows the Bush tax cuts were adopted into law by the Republicans, with complete Republican control of Congress and the White House at the time.  It will be too obvious that it took President Obama and his new neo-Marxist Democrat Party to let them expire.

Enjoy the new Obama recession.  You and your neighbors voted for it.

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