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How is Obama gonna handle the hot potato about him promising no new taxes to get elected?
He just handed the citizens of the US the biggest tax increase in US history. Shouldn't he make good on his promise and repeal Obamacare?
13 Answers
- 9 years agoFavorite Answer
If you're referring to the Health Care Reform Act's going forward after the Supreme Court upheld it as "the biggest tax increase in history," you are mistaken. There are many people in the news today calling it such, but they are all right-wing politicians and pundits who do not mention any numbers to back up their false claims. They are lying to you. Here's the facts:
In addition to the $750 added tax for people who choose to not get health insurance, the new taxes included in the law are as follows:
• Starting in 2013, Medicare payroll taxes increase 0.9 percentage points for people with incomes over $200,000 ($250,000 for couples filing jointly). Also, people at this income level would pay a new 3.8 percent tax on investment income. The 10-year cost: $210.2 billion.
• Starting in 2018, a new 40 percent excise tax on high-cost health plans, so-called "Cadillac plans" (over $10,200 for individuals, $27,500 for families), kicks in. That's expected to bring the government a total of $32 billion in 2018 and 2019.
• Started in 2011, there's a new fee for pharmaceutical manufacturers and importers. That's expected to raise $27 billion over 10 years.
• Starting in 2013, a 2.3 percent excise tax on manufacturers and importers of certain medical devices starts. The 10-year total: $20 billion.
• Starting in 2014, a new annual fee on health insurance providers begins. Total estimated 10-year revenue: $60.1 billion.
• Starting in 2013, the floor on medical expense deductions on itemized income tax returns will be raised from 7.5 percent to 10 percent of income. That's expected to bring in $15.2 billion over the next 10 years.
• Started in 2011, a 10 percent excise tax on indoor tanning services. That's expected to bring in $2.7 billion over the next 10 years.
So when all of these provisions are in full effect in 2019, they will bring in extra tax revenue equal to 00.49% of GDP. This makes it into the top 10 increases, but there's clearly been much bigger:
1. Revenue Act of 1942: 5.04 percent of GDP;
2. Revenue Act of 1961: 2.2 percent of GDP;
3. Current Tax Payment Act of 1943: 1.13 percent of GDP;
4. Revenue and Expenditure Control Act of 1968: 1.09 percent of GDP;
5. Excess Profits Tax of 1950: .97 percent of GDP;
6. Tax Equity and Fiscal Responsibility Act of 1982: .8 percent of GDP;
7: Crude Oil Windfall Profit Tax Act of 1980: .5 percent of GDP
8: Omnibus Budget Reconciliation Act of 1993; .5 percent of GDP;
9: Omnibus Budget Reconciliation Act of 1990; .49 percent of GDP.
Also, Obama didn't promise "no new taxes," he promised no tax increases for those earning less than $250,000 a year. This is indeed a broken promise. I personally believe that it was a promise made in good faith, forced to be broken by the realities of getting laws like this one passed. If others refuse to be forgiving, I cannot deny them that.
Source(s): politifact.com - Kiran CLv 79 years ago
Why would it be a big tax increase? A majority of Americans have health insurance so this mandate will not affect them. Justice Roberts called the mandate penalty a tax incentive. It is in the same category as home mortgage deduction. If you have a house, your taxes are longer. If you have health insurance, your taxes are lower; in fact, if you buy your own, you get tax credits to pay for it.
- TKLv 79 years ago
Anyone who questions him on the issue will just be painted as being too stupid to understand his superior intellect. The SCOTUS will be restated as saying this is not a tax, or it's not a tax for the GOOD comrades, er, I mean citizens, Herr Tzar.
- Anonymous9 years ago
The Obama lovers will simply ignore the lie, the haters will make much of it. Between the two, I can't decide who to hate more, so I think I will hate both equally.
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- MaxLv 79 years ago
"He just handed the citizens of the US the biggest tax increase in US history."
How does it feel to lie like that??
- Anonymous9 years ago
Obama will simply tell everyone that the taxes will be on the "rich" and they will get a magnificent new freebie.
- BflowingLv 79 years ago
Wow, talk about spin control! It is not a big tax increase since it only applies to those who don't have or want health insurance. If you already have insurance, you don't pay an additional dime because of this law.
- Anonymous9 years ago
He is a lock, I'll send you a crying towel in Nov.
- Anonymous9 years ago
sorry, the President didn't kiss grover's ring.
thats for mouth-breathing cons only