President Obama’s new law giving government more power over health care will be imposed on taxpayers as well as patients, with two-thirds of a trillion dollars in tax hikes and 14 different increases on citizens earning less than $250,000 a year, according to a new analysis.
The report comes from Janice Shaw Crouse, a senior fellow at Concerned Women for America’s Beverly LaHaye Institute.
The report, “Obamanomics: Summary of the Analyses and Commentary Related to the Financial Impact of Obamacare on Women and Families, noted, “The great irony of Obamacare is that Americans overwhelmingly oppose the bill.”
It cited former Republican Sen. Rick Santorum’s warning that “every generation has to fight forces at home and abroad that want to destroy not just what America is, but what it has always strived to be – that shining city on a hill that believes in the power of a free and virtuous people to take care of themselves and their neighbors; in a limited federal government with most rights residing with the states and the people; that those rights come from our Creator; and that the role of government is to protect those rights, not create and impose unnatural rights that pit those granted them against those who are forced to sacrifice their money, time or even their lives at the expense of someone else’s new right.”
“President Obama is working to transform America into something we have never been and never aspired to be,” Santorum said.
Among the new costs are penalties for employers who hire low-income workers, especially those with families. Another comes in the form of fines, estimated by White House actuary Richard Foster at $87 billion over five years, for businesses that cannot offer government-ordered coverage.
The law further imposes levies on medical devices, putting American companies at a competitive disadvantage. Obamacare also creates 148 new commissions, boards and agencies that will intervene in health-care fees, taxes and penalties, and the large penalties required of anyone who doesn’t have the health insurance the government demands.
Some estimates for the cost of Obamacare to citizens are much higher. Rep. Paul Ryan, R-Wis., according to the report, believes it will cost “$2 trillion in higher taxes.”
“Many Americans instinctively knew that Obamacare included a ‘gotcha’ buried deep inside,” the Crouse report said.
Among some of the specific cost-raising measures:
- No more deductions from federal income of state and local taxes.
- End of business tax credits for research and development.
- Tuition and related expenses no longer deductible.
- Marginal tax rates on the rise: from 10 percent up to 15 percent; 25 percent up to 28 percent and on.
- Dividend taxes skyrocketing.
- Personal capital gains taxes up from 5 percent to 10 percent.
- The child tax credit slashed in half, to $500.
- Stepped up death taxes.
- A cut in the dependent care tax credit.
- The adoption tax credit to be slashed.
The report also addresses the looming cloud of the national debt, described as “economic Armageddon.” Some estimates say $10 trillion will be added to the debt over the next decade.
“Economists generally consider a 90 percent debt-to-GDP ratio a crisis and … the U.S. is predicted to be at 100 percent by 2019-2022,” the report said.
“The federal stimulus package was supposed to alleviate the financial crisis, but it didn’t,” the report said, “As New York’s Democratic Lt. Gov. Richard Ravitch notes, ‘The stimulus package just raised higher the cliff from which we all will have to jump off.’”
Further, there now is a movement for a value-added tax that could hit everyone not just once or twice, but over and over.
“Of course, President Obama promised there would be absolutely no tax increases for families making less than $250,000 per year. But, Americans for Tax Reform reports that President Obama recently changed his rhetoric – just slightly – to say that he won’t be raising ‘income’ taxes on families,” Crouse’s report said.
But a 10 percent VAT would cost each household $4,300 a year – and most European countries set their VAT tax rates at 20 percent, the report said.
The report said, “Over the next decade there are dozens of tax increases scheduled to automatically go into effect unless Congress intervenes.”
Crouse reviewed articles and commentaries by economic and financial experts and summarized their findings and opinions in a paper, documented with four pages of footnotes.
The report also warns of additional penalties on marriage, forecasting some couples will get divorced to avoid the payments.
Married couples could be paying as much as $10,000 more for being married, the report says.
It also points out the law includes taxpayer funding of abortion and of community health centers – including Planned Parenthood clinics – that provide abortions.
“With the specifics of the legislation a closely-guarded secret known only to the liberal elite in Congress while it was under deliberation, it was not immediately clear that women and families were the ones bearing the brunt of the new taxation hidden in Obamacare,” Crouse’s report said.
“Supporters didn’t talk about the bill’s marriage penalty – the fact that it will redistribute wealth from married couples to cohabiting couples. They also didn’t mention the fact that ‘people on Medicare and Medicaid, disproportionately women, would receive less care and possibly worse care.’ Plus, nobody talked about the fact that the bill penalizes those employers that hire low-income workers, primarily single mothers and housewives needing a second income.
“So, instead of encouraging single mothers to marry the father of their children and to become financially independent by facilitating job growth, ObamaCcre creates another avenue of dependency through health insurance subsidies,” she wrote.