Obamacare’s Five Tax Increases That Most Hurt Seniors

The jobs-killing Obamacare law contains 20 new or higher taxes on families and employers. Here are the 5 tax hikes that most hurt seniors.
 

The jobs-killing Obamacare law contains 20 new or higher taxes on American families and employers. Many of these tax increases fall on families making less than $250,000–a direct violation of candidate Obama’s promise not to raise “any form” of taxes on these families. In less than a week, the third anniversary of Obamacare being signed into law will take place. The Supreme Court will be hearing oral arguments about the constitutionality of Obamacare next week.

Out of the 20 new or higher taxes in Obamacare, here are the five that most hurt seniors:

Individual Mandate excise tax penalty. Many seniors face a coverage gap between retirement and Medicare eligibility. Obamacare raises taxes on these younger seniors by punishing them if they don’t purchase “qualifying health insurance.” Set to go into effect in 2014, the excise tax penalty for mandate non-compliance will in 2016 rise to 2.5% of adjusted gross income for a senior couple (or $1390 for those making less than $55,600). Why does Obamacare raise taxes on seniors just as they are entering retirement?

“Cadillac Plan” excise tax. Starting in 2018, Obamacare imposes a whopping 40% excise tax on high-cost (“Cadillac plan”) health insurance plans. This is defined for seniors as a plan whose premiums exceed $29,450 for a family plan, or $11,500 for a single senior. Seniors often face higher costs in health insurance premiums due to chronic health conditions and other risk factors. This tax is almost exclusively a tax which will fall on seniors with the greatest health insurance needs.

Dividends tax hike. Starting in 2013, the top tax rate on dividends is scheduled to rise from 15% today to 39.6%. In addition, Obamacare imposes a dividend “surtax” of 3.8% on families making more than $250,000 per year. That would create a top dividend tax rate of 43.4%, nearly triple today’s rate. This will fall very hard on seniors. According to the Tax Foundation’s analysis of IRS data, 70% of households over age 55 receive dividend income. 71% of all dividends paid flow to these households. To raise taxes on dividends is to raise taxes on seniors.

Medical device excise tax. Obamacare imposes a new excise tax on medical device manufacturers in 2013. These companies will surely build the cost of this new tax into the price of what they sell. Who buys medical devices? Who buys pacemakers, wheelchairs, and other costly medical devices? Seniors do.

Reduce allowable medical itemized deductions. Under current law, medical itemized deductions can be claimed on tax returns, but they must be reduced by 7.5% of adjusted gross income. Obamacare increases this “haircut” to 10% of AGI in 2013. This will mean that millions of Americans claiming medical itemized deductions will no longer be able to. The same IRS data as above tells us that 60% of all tax returns claiming this deduction are over age 55.

-Americans for Tax Reform-

Friday night news dump: Administration to move forward with and expand contraception mandate

The administration this afternoon released its “Advance Notice of Proposed Rulemaking on preventive services policy.” Translation: President Barack Obama and HHS Secretary Kathleen Sebelius are moving forward with their controversial contraception mandate, which requires even religiously affiliated employers to provide their employees with insurance that covers contraception — even if those employers object to contraception on religious grounds.

But don’t worry: Secretary Sebelius says your religious liberty is assured, so it is assured.

“The President’s policy respects religious liberty and makes free preventive services available to women,” she said. ”Today’s announcement is the next step toward fulfilling that commitment.”

Never mind that, by drawing a distinction between actual churches and church-operated businesses like hospitals and schools, the administration effectively appropriated for itself the power to determine what constitutes ministry. Also, last I checked, there was no such thing as “free preventive services.”

Sandra Fluke should be happy, though. The administration made a final decision about whether it will require colleges to provide students with insurance that covers contraception, as well.

Read the rest at Hot Air.

April 1 is a date that every politician and business executive in America should circle on the calendar. That’s when Japan cuts its corporate tax rate to 36.8% from 39.5%. The United States will then hold the title of highest corporate tax rate, with average combined federal and state profit levies of 39.2%.
WSJ

All red meat is bad for you, new study says

A long-term study finds that eating any amount and any type increases the risk of premature death.

Eating red meat — any amount and any type — appears to significantly increase the risk of premature death, according to a long-range study that examined the eating habits and health of more than 110,000 adults for more than 20 years.

For instance, adding just one 3-ounce serving of unprocessed red meat — picture a piece of steak no bigger than a deck of cards — to one’s daily diet was associated with a 13% greater chance of dying during the course of the study.

Even worse, adding an extra daily serving of processed red meat, such as a hot dog or two slices of bacon, was linked to a 20% higher risk of death during the study.

“Any red meat you eat contributes to the risk,” said An Pan, a postdoctoral fellow at the Harvard School of Public Health in Boston and lead author of the study, published online Monday in the Archives of Internal Medicine.

Crunching data from thousands of questionnaires that asked people how frequently they ate a variety of foods, the researchers also discovered that replacing red meat with other foods seemed to reduce mortality risk for study participants.

Eating a serving of nuts instead of beef or pork was associated with a 19% lower risk of dying during the study. The team said choosing poultry or whole grains as a substitute was linked with a 14% reduction in mortality risk; low-fat dairy or legumes, 10%; and fish, 7%.

Previous studies had associated red meat consumption with diabetes, heart disease and cancer, all of which can be fatal. Scientists aren’t sure exactly what makes red meat so dangerous, but the suspects include the iron and saturated fat in beef, pork and lamb, the nitrates used to preserve them, and the chemicals created by high-temperature cooking.

The Harvard researchers hypothesized that eating red meat would also be linked to an overall risk of death from any cause, Pan said. And the results suggest they were right: Among the 37,698 men and 83,644 women who were tracked, as meat consumption increased, so did mortality risk.

In separate analyses of processed and unprocessed meats, the group found that both types appear to hasten death. Pan said that at the outset, he and his colleagues had thought it likely that only processed meat posed a health danger.

But Pan said the bottom line was that there was no amount of red meat that’s good for you.

“If you want to eat red meat, eat the unprocessed products, and reduce it to two or three servings a week,” he said. “That would have a huge impact on public health.”

A majority of people in the study reported that they ate an average of at least one serving of meat per day.

UC San Francisco researcher and vegetarian diet advocate Dr. Dean Ornish said he gleaned a hopeful message from the study.

Ornish said, “What’s good for you is also good for the planet.”

In an editorial that accompanied the study, Ornish wrote that a plant-based diet could help cut annual healthcare costs from chronic diseases in the U.S., which exceed $1 trillion. Shrinking the livestock industry could also reduce greenhouse gas emissions and halt the destruction of forests to create pastures, he wrote.