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Adding Up the New Taxes of ObamaCare

Saturday June 30th, 2012   •   Posted by Craig Eyermann at 11:14am PDT   •   14 Comments

Now that the Supreme Court has declared that the Patient Protection and Affordable Care Act, a.k.a. “ObamaCare”, can only be considered to be constitutional under the Congress’ power to tax Americans, how much will Americans see their taxes go up once the law goes fully into effect? And will it only affect people with incomes over $200,000 (if single) or $250,000 (for families) as President Obama promised? Or will it hit a lot more people with a lot lower incomes closer to home?

We’ve tapped data that the Americans for Tax Reform advocacy group has put together detailing the full list of ObamaCare’s tax hikes to produce the following table, where we’ve identified the tax hikes that are projected to add at least $100 million per year to the U.S. Treasury’s coffers once they go into effect.

 

Description of “ObamaCare” Tax Year Effective Estimated Annual Tax Collections Who is negatively affected by the tax?
Impose 3.8% Medicare Hospital Insurance payroll tax on investment income for individuals earning over $200,000 a year or households earning over $250,000 a year. 2013 $17.6 billion High Income Earning Individuals
Impose a 40% excise tax on “Cadillac” health insurance plans that cost more than $10,200 for single individuals or $27,500 for families. 2018 $16.0 billion Consumers/Individuals
Increase combined employer/employee Medicare Hospital Insurance payroll tax on individuals with incomes over $200,000 a year and families with incomes over $250,000 a year from 2.9% to 3.8%. 2013 $12.4 billion Businesses and High Income Earning Individuals
Impose new excise tax on individuals to either buy health insurance or employers to offer it to their employees or pay penalty (tax). 2014 $10.8 billion Individuals/Businesses
Impose a fee (tax) upon health insurance providers based on each individual company’s share of the total market. 2014 $10.0 billion Health Care Suppliers (Costs passed along to Consumers/Individuals)
Impose a new 2.3% excise tax on U.S.-manufactured and imported medical devices costing over $100. 2013 $2.9 billion Consumers/Individuals
Increase “black liquor” bio-fuel tax. 2010 $2.4 billion Consumers/Individuals
Increase income tax collections from taxpayers with high medical expenses (over 7.5% of their adjusted gross income) who deduct their health care costs on their taxes. 2013 $2.2 billion Individuals
New fee (tax) on manufacturers and importers of non-generic prescription medication based upon their share of annual sales of these products. 2010 $2.2 billion Health Care Suppliers (Costs passed along to Consumers/Individuals)
Limit amount of pre-tax income that can be set aside in Flexible Spending Accounts to pay for expected annual health care expenses to $2,500 (previously unlimited.) 2013 $1.9 billion Individuals
Increase tax collections from businesses by eliminating the deductibility of paying for their retirees’ prescription drug coverage. 2013 $0.6 billion Businesses (Costs passed along to Consumers/Individuals)
Increase in existing income tax collections from no longer allowing non-prescription medication and other health care products to be paid for using pre-tax income set aside and saved by individuals to pay from their own expected or future health care costs using Health Savings Accounts or Flexible Spending Accounts. 2011 $0.6 billion Consumers/Individuals
Increase tax collections from businesses under current law by preventing them from being able to reduce their tax liability using lawful tax deductions or business strategies. 2010 $0.5 billion Businesses (Costs passed along to Consumers/Individuals)
New excise tax on indoor tanning services. 2010 $0.3 billion Consumers/Individuals
Increase penalty (tax) for withdrawing money from a Health Savings Account for non-medical early withdrawals. 2011 $0.2 billion Consumers/Individuals
Impose a maximum compensation limit for health insurance executives. 2013 $0.1 billion High Income Earning Individuals

Tallying up the annual increase the IRS will be looking to collect each year after the law is fully implemented, we find that the U.S. federal government expects to take in an additional $80.7 billion per year. Of that $80.7 billion, 37.3% ($30.1 billion) will come from high income earning individuals or their employers. The remaining 62.7% ($50.6 billion) will either be paid by people with lower incomes or will be passed along to consumers and individuals by businesses through higher prices.

Given the distribution of income in the United States, most of that increased burden will fall upon households earning between $49,455 and $250,000, which covers about 48% of all U.S. households. Coincidentally, this is the segment of the U.S. population that pays the vast majority of all income taxes collected by the U.S. government each year. It is also the segment of the U.S. population that considers itself to be middle class, which includes the $172,000 annual income for a federal government employee that President Obama himself described as being “relatively modest“.

With about 120 million households in the U.S. and 48% of that figure coming in at 57,600,000 households, that puts the average cost of ObamaCare per middle class household at $878.47. And that’s on top of all their other household expenses.

The only problem is that this figure is far short of what ObamaCare will really cost....



14 Responses to “Adding Up the New Taxes of ObamaCare”

  1. Bill says:
    July 2, 2012 at 7:28 am

    $878.47 is certainly much less costly that what I have to pay currently for my Medigap insurance.

  2. Martha Roy says:
    July 2, 2012 at 10:01 am

    Unbelievable. Why can’t Americans see what is going on. Yes, he is a nice guy, charismatic, funny, but not presidential. Does not care about the little people. I am so sad about this.

  3. BOSucks says:
    July 2, 2012 at 10:14 am

    Barry “read my lips” promised no additional taxes if Obamacare were enacted.

  4. Gray Eaglez says:
    July 2, 2012 at 11:11 pm

    Obama belongs to the (New Party) out of Chicago and the New Party’s goal is to dismantle the government of the United States and bring in socialistic society. Much of what is happening is not known but the main goal is to break down the financial support and cripple the defense by making cuts to their budget and troop numbers. Obama is not on the side of America, but he has fooled a lot of persons and he has an administration and news media that run interference for him. Pretty much everything Obama says is a lie ans has a double meaning. Obama is in the same class as Chavez but twice as deadly. Funny thing about it is that Bush is greatly responsible for getting Obama elected, because of the way he handled the war: some say he created a war with Iraq and the way he spent the taxpayer’s money. Anyway it will all come to a head in November, but if Obama is reelected you can kiss life as you know it an America goodbye.

  5. Gray Eaglez says:
    July 2, 2012 at 11:17 pm

    Hell it’s hard to count the lies that Obama spouts out, so many of them, and when Obama said to the masses that he would fundamentally change America he really meant what he said, and now we’re finding out so be careful what you wish for.

  6. Ken says:
    July 4, 2012 at 4:00 am

    This doesn’t even factor in the infrastructure costs that will explode exponentially over the next decades. The liberals will use this infrastructure to create non-productive opportunities for job packing and social engineering causes. See the NHS in England and Canada.

  7. Bob says:
    July 5, 2012 at 12:50 pm

    Um, I think your math is a bit off. The $50.6 billion will be spread across all households, not just the 48% of households you’re trying to scare. Also, many of those taxes you’re totaling to get the $50.6 billion target certain subsets of households and don’t affect households broadly. And I’m pretty sure the largest part of the $50.6 billion, the excise tax on Cadillac plans, will steer employers away from offering such extravagant, unnecessary plans, and that $16 billion annually will be quite a bit smaller.

  8. Dave says:
    July 6, 2012 at 5:49 pm

    Who are we to decide what is or is not necessary Bob? If an employer wants to offer a product to his employees, why should anyone besides the employer and individual employee be involved in the matter?

    Answer: No one should be involved in that exchange if they are not directly affected.

  9. Monday Grab Bag of Links … | The Pretense of Knowledge says:
    July 9, 2012 at 2:58 am

    [...] RIP Obama’s Accomplishments - Huffington Post Golden Rule of Ever-Expanding Dependency Adding Up the New Taxes of ObamaCare Roll-your-own cigarette operations to be snuffed out Lights go dim on another energy project [...]

  10. Repeal Obamacare 3 | says:
    July 29, 2012 at 10:18 pm

    [...] Finally, for now, We went to MyGovCost.org and tapped data that the Americans for Tax Reform advocacy group has put together detailing the full list of ObamaCare’s tax hikes to produce the following table, where we’ve identified the tax hikes that are projected to add at least $100 million per year to the U.S. Treasury’s coffers once they go into effect. Read it all at (Link) [...]

  11. Will work less says:
    September 4, 2012 at 11:53 am

    I am a health care provider and should be able to make 350K+ a year if i work five 10′s. Looks like now more like three 10 hour days and make a little less. Oh yea my wife is a provider as well she will stay home with kids. Go ahead and take away incentive to work. Everyone will have longer wait times if you can get in to see me at all. I’m not one who is losing on this deal.

  12. It took only 2 days for the MISERY to escalate under Obama - Page 3 - US Message Board - Political Discussion Forum says:
    November 10, 2012 at 7:22 am

    [...] are in the aca? This lists 9 of them. Here Are The New Taxes You This list has 16 new taxes. Adding Up the New Taxes of ObamaCare | MyGovCost | Government Cost Calculator [...]

  13. The Fiscal Cliff: What Really Needs to Be Done | Light from the Right says:
    November 15, 2012 at 2:35 pm

    [...] There will be automatic spending cuts of $120 billion annually in both defense and non-defense spending, there will be increases in income and capital gains tax rates, the reestablishment of the so-called “death tax” (the estate tax), 27 million households will now be subject to the “wealth tax” under the Alternative Minimum Tax (AMT), while those enjoying the payroll tax “holiday” will see their Social Security withholding taxes return to the 6.2% rate from the current temporary 4.2% rate. There would be the confluence of another flurry of other tax increases and spending cuts as well, including 27% cuts to Medicare providers and at least four other tax increases imbedded in Obamacare. [...]

  14. sandyshores says:
    March 25, 2013 at 6:07 am

    What will all of this do to the cost of living? That is my biggest concern. If higher taxes are added into all of our products and Obamacare what will our costs go up to at the store?

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