Unless someone has painstakingly read each page of the Affordable Care Act, no one will be able to comprehend all of the complexities of it or what it will mean to the average American. Politicians, Legislatures and governmental bureaucrats are infamous for being confusing and manipulative with the information they share and dodge responsibility once the problems begin to haunt us. So how will the average “Joe and Joanne American” know the full impact of this bill and its effect on their daily lives, once enacted in 2013?
Fox News 43 recently covered the ACA Obama Healthcare plan, outlining 5 items we should all be paying attention to (http://www.foxnews.com/opinion/2012/07/05/five-major-obamacare-taxes-that-will-hit-your-wallet-in-2013/#ixzz1zw9sWUUe)
*From Pacemakers to operating instruments, the “Medical device tax” will slowly disintegrate an already small surviving number of “Made in America” manufacturing plants likely sending these jobs overseas to China or some other foreign country once this tax kicks in:
“This 2.3 percent tax on medical device makers will raise the price of (for example) every pacemaker, prosthetic limb, stent, and operating table. Can you remind us, Mr. President, how taxing medical devices will reduce the cost of health care? The tax is particularly destructive because it is levied on gross sales and even targets companies who haven’t turned a profit yet.
These are often small, scrappy companies with less than 20 employees who pioneer the next generation of life-prolonging devices. In addition to raising the cost of health care, this $20 billion tax over the next ten years will not help the country’s jobs outlook, as the industry employs nearly 400,000 Americans. Several companies have already responded to the looming tax by cutting research and development budgets and laying off workers.”
*Medical expense deductions are allowed after 7.5% of adjusted gross income. That figure will rise to 10% with ObamaCare
“Currently, Americans are allowed to deduct medical expenses on their 1040 form to the extent the costs exceed 7.5 percent of one’s adjusted gross income. The new Obama Care provision will raise that threshold to 10 percent, subjecting patients to a higher tax bill. This tax will hit pre-retirement seniors the hardest. Over the next ten years, affected Americans will pony up a minimum total of $15 billion in taxes thanks to this provision.”
*Flex Spending Accounts will cap at $2500 (there is currently no cap). Those hit hardest by the reduction on the “spending cap” are children who have “special needs” (i.e. education to medication) to those kids with everyday needs (i.e. braces to glasses).
“The 24 million Americans who have Flexible Spending Accounts will face a new federally imposed $2,500 annual cap. These pre-tax accounts, which currently have no federal limit, are used to purchase everything from contact lenses to children’s braces. With the cost of braces being as high as $7,200, this tax provision will play an unwelcome role in everyday kitchen-table health care decisions.
The cap will also affect families with special-needs children, whose tuition can be covered using FSA funds. Special-needs tuition can cost up to $14,000 per child per year. This cruel tax provision will limit the options available to such families, all so that the federal government can squeeze an additional $13 billion out of taxpayer pockets over the next ten years.
The targeting of FSAs by President Obama and congressional Democrats is no accident. The progressive left has never been fond of the consumer-driven accounts, which serve as a small roadblock in their long-term drive for a one-size-fits-all government health care bureaucracy.
For further proof, note the ObamaCare “medicine cabinet tax” which since 2011 has barred the 13.5 million Americans with Health Savings Accounts from purchasing over-the-counter medicines with pre-tax funds.”
*The average American may not find it too easy to empathize with those who have enough money to invest in the economy, but realize this before you start to yawn: Investment in the economy is what makes our financial world spin in a full circle. When we stop an investor, through taxation, we stop the flow of money back into the economy. Those same dollars that could be invested in America will now go overseas or will stay in the pockets of the investor through other investment strategies that will not see the light of day in the everyday lives of their fellow Americans:
“Under current law, the capital gains tax rate for all Americans rises from 15 to 20 percent in 2013, while the top dividend rate rises from 15 to 39.6 percent. The new ObamaCare surtax takes the top capital gains rate to 23.8 percent and top dividend rate to 43.4 percent. The tax will take a minimum of $123 billion out of taxpayer pockets over the next ten years.”
*3.8% Medicare Tax Rate increase = Employers downsizing and outsourcing jobs. The government can not keep nickel-dimming the employer and expect them to survive.
“This tax soaks employers to the tune of $86 billion over the next ten years.”
A comprehensive explanation of this tax is provided below by “The Tax Guy” Bill Bischoff (http://www.smartmoney.com/taxes/income/what-obamacare-may-mean-for-taxes-1335896160486/)
“Starting 2013, an extra 0.9% Medicare tax will be charged on: (1) salary and/or SE income above $200,000 for an unmarried individual, (2) combined salary and/or SE income above $250,000 for a married joint-filing couple, and (3) salary and/or SE income above $125,000 for those who use married filing separate status. For self-employed individuals, the additional 0.9% Medicare tax hit will come in the form of a higher SE bill."
When it is all said and done, many questions still remain: What has Federal Government done to tighten their own belts? Have the legislatures, congressmen and women, senators and representatives taken a pay cut, started paying for their own health insurance, and stopped receiving lifetime benefits for short stints in office? Have more jobs been brought back to America? Has the government’s spending been reduced to the same tune as what’s been proposed to pay for the Federal deficit?
More importantly, who will regulate the premiums charged by insurance companies? Everyone must have auto insurance or they are breaking the law; however, Federal Government does not regulate auto insurance premiums. If Obama-Care’s objective is to make health insurance affordable and accessible for everyone, than simply regulating insurance companies would be a much better solution.
Why not change the focus from what the government can do for us to what we can do for ourselves? What if each person took it upon themselves to practice wellness by becoming more personally responsible for their own health? That one act alone would save billions of dollars a year health care costs. Here is my proposal:
Personal Responsibility Health Care Act (PRHCA)
*Each individual is responsible for the choices they make when it comes to their health. Too many people destroy their physical/emotional lives and expect the rest of us to pay for it. If you are drinking, smoking, eating and physically destroying your life why should your fellow tax payer foot the bill?
*Allow taxpayers to deduct 100% of their healthcare costs. Healthcare is not a luxury it is a necessity. If I can deduct 100% of the mortgage interest on my home, why can’t I deduct 100% of my healthcare costs? Owning a home is an option; paying for my health is a necessity.
*Place a cap on premiums insurance companies can charge. The average family of 5 pays about $200 per person per month in premiums for private healthcare (with a $500-$1000 per person deductible). That’s $1000/month! No wonder people are avoiding buying health insurance.
Sounds to simple, doesn't it? Why? Because Obama-Care is more about lowering the deficit through taxing the American public than it is about providing healthcare for everyone.
If we shift from finger pointing to finding affordable answers for the average American, we can come up with a better solution than the one imposed upon us now. However, Obama-Care is just around the corner. If you are not “for it”, you better make your voice known in November. Otherwise, we will be “stuck” with it for another four years!
Quick Tips for Wellness: Taking the time to practice wellness every day is the best way to avoid the healthcare nightmare.
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