noworldsystem.com


ObamaCare: Just Another Tax On The Middle-Class

Baucus Bill Will Impose 23% Tax Rate Increase on Middle Class

TaxProf
October 14, 2009

Following up on last week’s post (80% Marginal Tax Rates After Health Care Reform), there is an op-ed in today’s Wall Street Journal by former Director of the Congressional Budget Office Douglas Holtz-Eakin, The Baucus Bill Is a Tax Bill; Middle-Class Families Would Get Hit With a Double-Digit Increase in Their Marginal Tax Rate:

Most astounding of all is what this Congress is willing to do to struggling middle-class families. The bill would impose nearly $400 billion in new taxes and fees. Nearly 90% of that burden will be shouldered by those making $200,000 or less.

It might not appear that way at first, because the dollars are collected via a 40% tax on sales by insurers of “Cadillac” policies, fees on health insurers, drug companies and device manufacturers, and an assortment of odds and ends.

But the economics are clear. These costs will be passed on to consumers by either directly raising insurance premiums, or by fueling higher health-care costs that inevitably lead to higher premiums. Consumers will pay the excise tax on high-cost plans. The Joint Committee on Taxation indicates that 87% of the burden would fall on Americans making less than $200,000, and more than half on those earning under $100,000.

Industry fees are even worse because Democrats chose to make these fees nondeductible. This means that insurance companies will have to raise premiums significantly just to break even. American families will bear a burden even greater than the $130 billion in fees that the bill intends to collect. According to my analysis, premiums will rise by as much as $200 billion over the next 10 years—and 90% will again fall on the middle class.

Senate Democrats are also erecting new barriers to middle-class ascent. A family of four making $54,000 would pay $4,800 for health insurance, with the remainder coming from subsidies. If they work harder and raise their income to $66,000, their cost of insurance rises by $2,800. In other words, earning another $12,000 raises their bill by $2,800—a marginal tax rate of 23%. Double-digit increases in effective tax rates will have detrimental effects on the incentives of millions of Americans.

 

Obamacare Means $1,700 More in Insurance Premiums for a Typical Family

Dick Morris
Townhall
October 14, 2009

Will a young, healthy, childless individual or couple buy health insurance costing 7.5 percent of their income as required by Obama’s health legislation? Not until they get sick. Then, they can always buy the insurance — and the Obama bill requires the insurance companies to give it to them. And, if the premiums come to more than 7.5 percent of their income because they are now sick, no problem. Obama will subsidize it.

Instead, young, healthy, childless people will likely opt to pay the $1,000 fine (a.k.a., slap on the wrist) mandated in the bill. After all, even if they make as little as $50,000 a year, the fine is a lot cheaper than 7.5 percent of their income (or $3,500 a year)!

So … these young households will not contribute to the coffers of any health insurance company until they are sick and need the coverage. By then, their costs will come to vastly more than their premiums.

Who will subsidize the difference? We will.

The insurance industry estimates that the bill will drive up premiums for the average family by $1,700 a year. By the time the bill takes effect in 2013, it estimates that the average annual family health insurance premiums (now $12,300) will rise to $17,200 if the Obama bill is passed, but only to $15,500 if it is defeated.

And who do you think the voters will blame for the hike in their premium? The Democrats who passed the bill.

Supporters of the bill are quick to counter that greater efficiency, etc. will hold down premiums. But they have little to answer the argument that, without higher fines, the young and healthy will not consent to pay an arm and a leg for insurance they don’t need.

Any lingering motivation to pay the premiums will disappear once the Obama bill requires insurance companies to cover them when they do, finally, limp in the door, desperately in need of insurance. Why pay now when you can always pay later? And, with a government subsidy, you gain nothing by paying for all those years when you don’t need insurance.

So Obama’s program turns out not to be one to spread insurance and thus spread the risk of costly illness, but one to make people pay 7.5 percent of their incomes once they get sick, with the government picking up their remaining premium and the health insurance customers paying for the medical expenses. Some deal!

So tote up the cost of this bill on the middle class:

— $1,700 more in insurance premiums for the average family.

— Medical devices like wheelchairs and hearing aids get taxed.

— Those who are sick must pay an average of about $600 more a year in income taxes because the bill raises the threshold for deducting medical expenses from 7.5 percent of income to 10 percent.

— A $404 billion cut in Medicare.

— Ending the subsidized Medicare Advantage insurance for costs over and above Medicare. Without Medicare Advantage, the elderly can only augment Medicare by buying Medigap coverage for which no subsidy is available and whose premiums are higher (offered, conveniently enough, by Obama’s buddies at the AARP).

— No importation of Canadian medicines and no competitive bidding to hold down prescription drug costs (Obama’s deal to get Pharma’s support and advertising dollars).

— A shortage of medical personnel and equipment as 30 million new patients are added without any expansion of the population of doctors and nurses. This shortage will make rationing inevitable, even if it shortens life expectancies among the elderly.

And, all of this assumes that the House bill, which imposes a 4.5 percent payroll tax (which will discourage new employment), does not pass — and that the cost estimates of this program prove realistic. Despite the Congressional Budget Office’s concurrence, one can’t help noticing that Massachusetts’ program was estimated to cost $200 million in 2005 and now costs $700 million!

This health care bill is, indeed, Obama’s first tax on the middle class.

http://www.youtube.com/watch?v=rL7ak__MGyw

 



ObamaCare Moves Forward

ObamaCare Moves Forward
Senate Finance Committee passes a $829 billion Baucus’ health care bill by a 14-9 vote, with the support of one Republican (Olympia Snowe R-Maine). There are many more bills health care reform has to pass before Obama signs the final bill into law.

http://www.youtube.com/watch?v=84KkFwSHAqs

 

The Truth About the Baucus Healthcare Bill

http://www.youtube.com/watch?v=Nj6GyFEA3FI

Max Baucus Placed Gag Order On Medicare Companies Concerning Cuts

 



Govt. Places Gag Order On Medicare Companies Concerning Cuts

Govt. Placed Gag Order On Healthcare Companies Concerning Cuts in Medicare

Examiner
September 23, 2009


Max Baucus, the Senator who unveiled the Obama-care proposal has placed a gag order on healthcare companies to prevent them from informing customers that the legislation would reduce their Medicare benefits.

Outraged that the federal government placed a gag order on healthcare companies concerning cuts in Medicare, Senate Minority Leader Mitch McConnell took to the floor of the Senate to condemn this muzzling of free speech and to demand that the gag order be lifted.

The entire YouTube video of McConnell’s words on the Senate floor can be viewed by clicking here.

Apparently the Humana Corporation, which offers supplemental Medicare insurance, sent out a memo in the mail to its customers warning them that certain legislation being pushed in Congress would more than likely result in a reduction of Medicare benefits.

That statement is true. Obama and the Democrats have proposed a 500 billion dollar cut in Medicare benefits over the next few years in order to help pay for ‘healthcare reform’ that will shift healthcare spending from senior adults to illegal aliens and those who do not presently have coverage.

Humana was merely informing its customers of a matter that is of extreme importance to them, as well as to the companies that offer the supplemental insurance.

However, a powerful Democrat in the Senate, incensed that a company would have to gall to state the truth and exercise its First Amendment rights to free speech, used his influence to get the federal government to issue a gag order for healthcare companies, forbidding them from disclosing any information to their customers concerning pending cuts in Medicare benefits.

We did some research into this inexcusable tactic on the part of the government and discovered that the powerful Senator who directed the Medicare agency to impose the gag order is none other than Senate Finance Committee Chair Max Baucus, D-Montana.

Read Full Article Here

 



ObamaCare Supporter Bites Finger Off Protester!

ObamaCare Supporter Bites Finger Off Protester!

http://www.youtube.com/watch?v=4272tcAjn1Q

 

ObamaCare Supporter Spits On Protester

http://www.youtube.com/watch?v=3sCqC6cdxgU

 

ObamaCare Supporter Elbows Town Haller in the Face!

http://www.youtube.com/watch?v=xE48gm5uqGM

Kicked, beaten and called a “nigger” by SEIU ObamaCare Supporter

 



Ronald Reagan Speaks Out Against Socialized Medicine

Ronald Reagan Speaks Out Against Socialized Medicine

 



ObamaCare Gives Dictatorial Powers to ‘Health Choices Commissioner’

Health Care Bill Gives Obama Power to Appoint Government ‘Commissioner’ With Sweeping Power to Dictate Health Coverage

Fred Lucas
CNS News
September 3, 2009

The health care bill under consideration in the House of Representatives would give President Obama the authority to name a new federal “Health Choices Commissioner” who would have sweeping power to govern the health insurance plans offered in a so-called ”exchange” where millions of Americans would get their health insurance if the bill is enacted.

These powers would include deciding which treatments are covered, which companies can participate, which states can run their own exchange, and enrolling individuals into the public exchange.

Though the bill, House Resolution 3200, faces many political hurdles, it has passed three House committees and could be ready for a floor vote after Congress returns from recess. The overhaul package calls for establishing a health insurance exchange where people earning up to 400 percent of the poverty level will be able to purchase health insurance with the help of federal subsidies. This exchange would include a “public option” government-run health care plan as well as private plans that provide a minimum benefits package dictated by the government.

The Health Choices Commissioner would establish “the benefits to be made available under Exchange-participating health benefit plans during each plan year,” according to page 84 of the 1,018-page bill. That means the commissioner would determine what benefits the participating insurance companies must offer participating customers in the exchange.

The commissioner would also set rules for insurance companies to participate in the health insurance exchange, and establish criteria for individuals to receive federal subsidies to purchase insurance in the exchange, according to section 142 on page 42 of the legislation.

Further, the commissioner would have the authority to establish “automatic enrollment” of individuals who qualify for the health insurance exchange.

“The Commissioner shall provide a process under which individuals who are Exchange-eligible individuals described in subparagraph (B) are automatically enrolled under an appropriate Exchange participating health benefits plan,” the legislation says, beginning on page 97. “Such process may involve a random assignment or some other form of assignment that takes into account the health care providers used by the individual involved or such other relevant factors as the Commissioner may specify.”

The exchange eligible individuals [determined by subparagraph (B)] include someone who “has not opted out from receiving such affordability credit,” someone who “does not otherwise enroll in another exchange participating health benefits plan,” and someone “enrolled in an Exchange-participating plan that is terminated (during or at the end of the plan year) and who does not otherwise enroll in another Exchange participating health benefits plan.”

Read Full Article Here

 

Health Care Bill Will Disclose IRS Tax Data

Declan McCullagh
CBS News
August 27, 2009

One of the problems with any proposed law that’s over 1,000 pages long and constantly changing is that much deviltry can lie in the details. Take the Democrats’ proposal to rewrite health care policy, better known as H.R. 3200 or by opponents as “Obamacare.” (Here’s our CBS News television coverage.)

Section 431(a) of the bill says that the IRS must divulge taxpayer identity information, including the filing status, the modified adjusted gross income, the number of dependents, and “other information as is prescribed by” regulation. That information will be provided to the new Health Choices Commissioner and state health programs and used to determine who qualifies for “affordability credits.”

Section 245(b)(2)(A) says the IRS must divulge tax return details — there’s no specified limit on what’s available or unavailable — to the Health Choices Commissioner. The purpose, again, is to verify “affordability credits.”

Read Full Article Here

 

John McCain gets Owned at Town Hall in Phoenix (8-26-09)

 



U.S. Marine: Pelosi Should Look For Swastika On Her Arm

U.S. Marine: Pelosi Should Look For Swastika On Her Arm

Veteran at Town Hall Tells Congressman Boren: “Give Me Liberty or Give Me Death”