Economic Destruction Plus

Posted by Larry Miller on March 25, 2010 under How | Be the First to Comment

doctorFor those not perceptive enough to be impressed by the destruction of our economy or even our health care system, there is a lot more involved in Pelosi’s rape of the American taxpayer. While these concepts may be too broad for non-political junkies, here are a few, less earth shattering consequences of the bill… an appropriate term in more ways than one. One of the major tax preparation companies came up just a few of the changes that the unbelievers should take note of… as harbingers of things to come.

Each may each seem small, but they indicate a pattern of tightening the screws on the American people. But then, our entire tax systems is geared to having us distracted by scratching and digging for dollars by the hundred while the political class and their friends take it by the millions, billions and trillions.

Flexible Spending Accounts (FSAs) and Health care Spending Accounts (HSAs), two of the tools we can use to take control of our own health care decisions are beginning to be drawn down. They start in 2011 by eliminating bandages, aspirins, over-the-counter drugs and the like from reimbursement leaving only prescription drugs and insulin. Penalties for unqualified distributions will be doubled from 10% to 20% and more importantly, contributions to FSAs are dropping from the current $5000 to $2500.

Presently, to receive a deduction for medical expenses, they need to exceed 7.5% of your Adjusted Gross Income. As we move into the 2013-2016 period, such expenses will have to exceed 10% of your AGI to be of value… making it even more difficult to make use of the deduction. From the statist perspective, this strategy raises revenue without the nasty publicity surrounding a “tax increase”.

However, to show that they are not totally averse to increasing their take of our revenue, they are increasing the employee share of Medicare tax from1.45% to 2.35% for income over $200,000. The even applies to the onerous self-employment tax on small businessmen and women. Who could fuss about this… taking from those who are obviously rich to take care of old people. Additionally, the evil rich will be hit with a new 3.8% tax on net investment income.

Beginning in 2014, those too irresponsible, or poor to buy government approved insurance plan will pay a tax, starting at $95 and rising to the the greater of $750 or 2% or ones income in 2016. To soften the blow on favored groups, the bill provides tax credits to negate the financial impact.

Businesses are not forgotten. Qualified small employers, defined as having less than 25 employees or a payroll of under $50,000… yeah, I know it looks like a misprint qualify for a special credit as do small 501(c) organizations.

Mixing health and revenue generation, beginning August of this year, there will be a 10% tax on those who defy governmental wisdom and use cancer causing tanning salons. Then they wrap it all up with a 40% tax on those who want to take care of their families with what they call, “Cadillac plans”. It’s a way of smacking achievers down to the level their government has decided is appropriate for it’s subjects. I guess we can at least be glad they kept the reference to an American company instead of calling them Mercedes plans… even though it is an Obama Motors car.

So… this is just a taste of things to come in a bill that no one admitted to knowing anything about. It appears that they want us to believe that that the thing appeared on Nancy Pelosi’s doorstep one morning and it absolutely had to be passed so we could see what was inside.

These are just a few details, with more to come. We just need to keep fighting the progressive vision of health care utopia… our lives could depend on it.

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