Green Room

13 New Tax Hikes

posted at 8:09 am on October 30, 2009 by

From Americans for Tax Reform, an analysis of Pelosi’s bill.

Including a “millionaire’s” surtax, and restrictions on Flexible Spending Accounts.

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Lots o’ new taxes! Awesome!

I do so love how the Left’s “solution” to every problem is to fling more of our money at it. That never gets old.

Track-A-'Crat on October 30, 2009 at 8:12 AM

13 new tax hikes just up to page 357?

joeswampy on October 30, 2009 at 9:33 AM

We need to keep in mind that the Employer Mandate Excise Tax is worse than a tax. It’s much worse: it’s an incentive to employers to dump their employees on the public option for their health insurance coverage.

The numbers tell the story on it. Under all the Congressional health care reform bills, including Pelosicare, the cost of private insurance will go up substantially (25% or more depending on location and an individual’s situation).

Private health insurance for the median-income family of four is projected to represent about 11% of income, on average. It could represent somewhat more than that in some states. Over time, it will keep going up, as insurers have less and less discretion over the payouts they have to make.

What the “excise tax” will actually represent for many employees is an option that costs them less per employee than private insurance does. Assume for simplicity an employee being paid $100K a year. Right now his total employee-funded health insurance benefits are $13K a year. Under Pelosicare, say the cost of that insurance to the employer rises to $15K a year. If his excise tax for not paying for that insurance is $8K a year (8% of $100K), which cost will the employer probably select?

Only the biggest companies will be able to retain increasingly expensive private insurance for their employees. The smaller ones will, one by one, start terminating their private insurance plans and just paying the tax. Their employees will be thrilled to know they are “covered” by the public insurance option. All they have to do is sign up for it — and start paying the premiums.

A huge number of people will see their employer-provided insurance go away, and have to start paying hundreds a month out of their own pockets.

J.E. Dyer on November 1, 2009 at 4:11 PM