Obamacare’s taxes are becoming clearer
December 4, 2012 at 3:47 pm in News, ObamaCare by Dustin Siggins 59 Comments
Last evening, Reuters reported that the IRS has finished and released new rules on some of the taxes in the Affordable Care Act. The rules, released late last Friday, go into effect in the New Year, though they are considered “proposed rules” until April, until which public comment will be received:
The Internal Revenue Service has released new rules for investment income taxes on capital gains and dividends earned by high-income individuals that passed Congress as part of the 2010 healthcare reform law.
The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.
The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.
The tax applies to a broad range of investment securities ranging from stocks and bonds to commodity securities and specialized derivatives.
The 159 pages of rules spell out when the tax applies to trusts and annuities, as well as to individual securities traders.
Released late on Friday, the new regulations include a 0.9 percent healthcare tax on wages for high-income individuals.
Of course, nothing is ever truly clear with the IRS, even with a tax this expensive:
Together, the two taxes are estimated to raise $317.7 billion over 10 years, according to a Joint Committee on Taxation analysis released in June.
To illustrate when the tax applies, the IRS offered an example of a taxpayer filing as a single individual who makes $180,000 in wage income plus $90,000 from investment income. The individual’s modified adjusted gross income is $270,000.
The 3.8 percent tax applies to the $70,000, and the individual would pay $2,660 in surtaxes, the IRS said.
The IRS plans to release a new form for taxpayers to fill out for this tax when filing 2013 returns.
The new rules leave some questions unanswered, tax experts said. It was unclear how rental income will be treated under the new rules, said Michael Grace, managing director at Milbank, Tweed, Hadley & McCloy LLP law firm in Washington.
“The proposed regulations surely will increase tax compliance burdens for individuals,” said Grace, a former IRS official. “There’s clearly some drafting left to be done.”
Taxes, spending and the loss of individual choice. These are the consequences of the President’s health care law. Fortunately, this particular tax still has a chance of being overturned if opposition in the public comments is strong enough. We’ll try to keep updated on this, and provide a link to where public comment is taking place. For now, keep an eye on the Federal Register (found here) tomorrow, when the proposed rules are posted.
There is other clarification needed.
This is a gargantuan expense. Who, specifically, will be the recipients?
What qualifies a person to be a recipient of the benefits of this act?
And, another thing needs to be clarified.
Because the penalty paid has been declared not a penalty, but a “tax” (I think the Supreme Court needs a dictionary), who will pay this tax?
If 47 percent of American households are so “poor” they can’t afford to pay income tax, does the IRS expect them to pay the Obama tax? Or, will the other half of the population that pays the individual income taxes for everyone in the country have to pay their Obama taxes for everyone in the country as well as their income taxes?
What the entitlement followers don’t know yet, is that their “fine” for failing to purchase the mandated coverage is the dollar amount of their tax refund….most receive several thousand a year a tax time.
all of “young adults” comments were deleted too i see as well as mine on this page
so was “blue”‘s
DB – Unfortunately, we already pay for people without insurance in the form of Medicaid. I for one supported the idea of everyone taking responsibility for for their own healthcare. It was a good idea under the Republicans in the 80′s and it’s a good idea now. Sadly, it should have been the Republicans saying this not the Democrats. If you go back, Obama was originally against mandated healthcare.
My personal experience, I work with a few guys who don’t purchase insurance for their families under our company’s insurance. One of the guys just had a baby. I asked him how much it cost him to have the baby. He said basically nothing because Medicaid paid for the costs. They even got free formula and diapers too! Sadly, he is a lifelong Republican and is against Obamacare.
This is a little confusing. He works, and I assume full time. You speak of him as if he is responsible and reliable. I interpret this to infer he has an average annual income, assuming he does not have an engineering or science degree. Being responsible and reliable, having a family that he lives and works for, then choosing not to cover his family under the company-provided insurance doesn’t seem like the normal case for such a person.
Unless there’s more to this story….
I think you blew it when you qualified your intended emotional impact by forcing a conclusion on the reader. You shouldn’t have used the word “sadly” in your closing statement.
Bullsh*t.
This is a little confusing. He works, and I assume full time. You speak of him as if he is responsible and reliable. I interpret this to infer he has an average annual income, assuming he does not have an engineering or science degree. Being responsible and reliable, having a family that he lives and works for, then choosing not to cover his family under the company-provided insurance doesn’t seem like the normal case for such a person.
Unless there’s more to this story….
I think you blew it when you qualified your intended emotional impact by forcing a conclusion on the reader. You shouldn’t have used the word “sadly” in your closing statement.
My comment is “Your comment is awaiting moderation.”
In short, your description of the person assumes a lot implied about the beneficial character of them. That is inconsistent with choosing to not participate in an insurance plan provided by the company while the majority of people working at his same level participates. Then you force an emotional conclusion on the reader.
I don’t believe everything you wrote.
My response has the status: “Your comment is awaiting moderation.”
Thanks for the update. I’m sure I will see it in the next few days…
Maybe….
There were some things in your description that was inconsistent with reality. Perhaps there is more to the story than what was written.
Yes, I forgot to mention they are not legally married. The mother claimed to be single…
As for the father, he would rather lease a new car every 5 yrs than buy health insurance for his family.
Your company must pay poorly or the guy have more kids than he can afford on your company’s salary. Medicaid is means tested.
i have heard that tired statement “we pay for people on medicaid anyway” so why not have a government take over of all healthcare. the point is not for government to take over, but for government to get out of the way. allow the free market to work where competition will reduce the cost of healthcare and people of all incomes can purchase health insurance as you do with life or auto. second, clean up the fraud on the medicaid rolls. we probably spend billions on people who should not be on it in the first place, like illegals. third, do people really believe that healthcare costs will be lower by this law. if you do, i have a bridge i would like to sell you. prior to medicare in the 60′s, most people did not have health insurance and health care was very affordable. you went to the dr. and paid the 10/20$ for the visit. needed tonsils out, the drs. had a payment plan. once tax dollars became involved the tax dollar floodgate opened. government is not the answer, it is a big problem and it will be getting worse. tell me one program the government runs that isn’t operting in the red. besides, the country is broke. remember, we are 16 trillion in debt.
Cathy,
You said a mouthful there! If the government would butt out and stop meddling where they have no idea what they are doing, the American public could get this mess fixed. Afforable Health Care is good enough for those of us who a lowly citizens but not good enough for members of Congress and, most of all, Obama and his family! What is wrong with this picture? We need a decent President that has some remote idea of how economics and finance REALLY works! That fool that is in our White House right now has no idea about either!
Radio-frequency identification (RFID) is the use of a wireless non-contact system that uses radio-frequency electromagnetic fields to transfer data from a tag attached to an object, for the purposes of automatic identification and tracking. Some tags require no battery and are powered by the electromagnetic fields used to read them. Others use a local power source and emit radio waves (electromagnetic radiation at radio frequencies). The tag contains electronically stored information which can be read from up to several meters (yards) away. Unlike a bar code, the tag does not need to be within line of sight of the reader and may be embedded in the tracked object.
RFID chip!
Submitted by strikeforce on Wed, 02/22/2012 – 18:07
in
Does anyone know of this?
This new Health Care (Obamacare) law requires an RFID chip implanted in all of us. This chip will not only contain your personal information with tracking capability but it will also be linked to your bank account. And get this, Page 1004 of the new law (dictating the timing of this chip), reads, and I quote: “Not later than 36 months after the date of the enactment”. It is now the law of the land that by March 23rd 2013 we will all be required to have an RFID chip underneath our skin and this chip will be link to our bank accounts as well as have our personal records and tracking capability built into it. polidics.com/news/another-hidden-secret-in-obamacare-rfid-chip-implants.html
On Sunday March 21, 2010 the Senate Healthcare bill HR3200 was passed and signed into law the following Tuesday.
Page 1004 of the new law (dictating the timing of this chip), reads, and I quote: “Not later than 36 months after the date of the enactment”
H.R. 3200 section 2521, Pg. 1001, paragraph 1.
“Modified adjusted”? Isn’t that a redundant statement? Lord help us…
I work for the government and know first hand how wastful we are. Let the market work as designed and it will provide the best solutions and advancements that we as a free people can decide on our needs for ourselves.
If you want waste, I’ll be happy to help spend your money. Its what keeps me employed!
Sorry to inform some of you that many of us don’t pay annual taxes because we don’t have “taxable income”; we simply don’t make enough money to pay more than we do during our work year. Oh, we pay alright, you seem to forget that federal, state, and, in some places, local taxes are deducted each paycheck. We also pay sales tax on everything from groceries to lawnmowers, even prescriptions. Let’s not forget the property taxes that are an annual burden for homeowners.
As for buying my own healthcare, I have a problem because I can’t afford the monthly premiums. Seriously. I would love to have health insurance, it’s no small thing to be running up doctors bills. I’m in my 50′s, reasonably healthy, work part-time, and my husband is on disability. I checked a government website to get an idea of what this Obamacare “affordable plan” is going to cost for me. My affordable healthcare plan will run me $348 in premiums every month. If I had that much money each month, I’d be insured for my healthcare already. So please don’t assume that all people who aren’t insured prefer not to take responsibility for themselves.
Dear Young Adult: Really? How old are you anyway, 18? You are obviously not a Tea Partier, so why are you on this site making comments. No one here cares what you think! No one here wants to read your stupid short-hand text posts either. So piss off and go back to playing your X-Box or watching YouTube all day, while WE work to pay for your food stamps, WellCare, and Section 8 housing!
That’s the problem with the TP. You don’t care what other people think. That’s why your losing ground. Most of you do not want to understand how the younger generation looks at things. I also find it very ignorant that you think they are “living off the government”. My son is in his second year of college. He is a full time student and works 3 jobs just so he can get a good education. He is a democrat.
Rusty, do you think we were born old?
Everything you think now, we thought. The reality is, the older you become the more experiences and observations you have. Accepting those experiences and observations as reality is called “growing up”.
You may have to grow up one day.
Look around yourself. Everything you see was generated by people who grew up. If we thought like you wish we would think, then when you looked around you’d be looking at REAL poverty, and not the relatively luxurious condition (compared to actual poverty in the world) people who never grew up call “poverty”.
… idiocracy. It’s here.
Rustyalien, why didn’t/don’t you work three jobs so that your son might concentrate on his studies?
Private industry has to run lean to make a profit. The government does not run anything efficiently. They just dig deeper into pockets that are already empty. Health care continues to get worse the more the government gets involved.
Young person, throwing insults around is a display of ignorance. Posters here will listen and respond if you say something of substance, but so far your posts have been irrelevant.
The Tea Party is fighting to preserve your rights and those of you children when you have them. The more the government controlls the less freedom and liberty you will have.
Well said Kristene.
What happens when there are no more people that make 200000 a year? Because that will be the end result. What will happen when people lose there job because the 200000ers cannot afford this? Because that will be the end result. Kind of like gravity. If you throw it up in the air, it has to come down. Its a natural law of the earth. If I overspend, and keep on overspending, will someone bail me out? Pretty soon, there will be no money to bail me out. This is what Obama is doing and some people have their glorified blinders with this man. And that is what he is, a man.
That isn’t a concern to the Democrats. That is actually the plan. They aren’t as stupid as you may think after you listen to them. After they consume all available money, there will be an emergency situation and they will use the condition they created for justification for the government to take control of everything.
That is their ultimate plan: government-based economy and unlimited government control.
This is the mentality we are threatened with today.
Boehner has proven he is too weak to stand up to this mentality. We need new leadership.
Paul Ryan should be the next Speaker of the House.
I just love how I’m censored on this website
That is just not true. Clinton had a tax and spend plan and we ended up with the strongest economy in decades. We will always be a capitalist country. There will always be money to be made. Just because the rich is going to be taxed more than the middle class is not the end. The sky won’t fall and life will go on just like it has. I still don’t understand why this group supports the ultra rich and corporations? Why would you support Corporations that put small business men out? Can someone explain that to me?
What I love most about this site is reading the same individuals telling the TEA Party how irrelevent they are, or that the idea of limited government is such a failed concept. Yet here they are, day in and day out, spouting the same hate filled diatribes while offering no workable solutions, just more anecdotal talking points and misinformation. A trait I find to be fairly common amongst the more liberal minded members of our society.
It’s a trait among human beings. The ones who are doing the name calling are usually the ones thinking with more emotion than logic.
The only Hate filled diatribes I’ve read here are yours, and others like you. But that’s not unusual is it?
Here’s an interesting health care observation. After reading the observation, the questions are:
1) What oversight currently exists?
2) What in ObamaKare will fix this?
3) What does the Surgeon really do for a living?
I had a case of food poinoning and spent 2 hours in an emergency room. The first treatment consisted of having sensors placed at various locations on my torso and recordings made for analysis, then the analysis. Time consumed, about a half hour. Conclusion, I was not having a heart attack. Then, I was given a sonogram looking for gall stones. Time consumed, about a half hour. Conclusioin, inconclusive.
I was given an injection to relieve the discomfort, which caused me to regurgitate the poisonous food.
The total time spent in the ER was approximately 2 hours.
The hospital billed my insurance company over 8 thousand dollars.
1) What oversight currently exists?
2) What in ObamaKare will fix this?
3) What does the Surgeon really do for a living?
From what I can tell, there is nothing in ObamaKare that will have an impact on this. It appears the government will determine what is paid, like it determines things like a simple wrench or a toilet seat costs a thousand dollars.
correction:
“3) What does the Surgeon really do for a living?” should be:
3) What does the Surgeon General really do for a living?
The Infamous Welfare Queen has been found!
http://youtu.be/sYCYcp2Xa4E
After President Obama and his czars completely bankrupt our country we will be like Russia. The doors will swing wide open to anyone coming in to “fix” us. The UN is waiting and the socialist world, Islam, etc. Heads will literally role. These heads will be the religious leaders, education leaders, teachers and anyone in authority. With leadership out of the way the common masses will follow or be killed.
Please people study history…
The health costs are incredibly high. Do you suppose some of the reason is, like the story of the man who would not buy insurance for his family and Medicaid paid for the obstetric services, costs have to be recouped in some fashion? In a way, it is their own redistribution of wealth, I guess.
Yes. All medical services are paid for, whether paid for the recipient that doesn’t pay or everyone else actually paying for their medical care. The cost of providing medical care to those who don’t pay is rolled over to the bill given to those who actually pay.
Also, there is no effective oversight. For some reason, the government wants to ake over full control of health care when it isn’t even able to provide oversight of it.
Another example of insanity in our government.
By the way, what does the Surgeon General really do for a living?
Thanks to our education system, it is very difficult to reach young people. Over the course of decades, both parents working, more and more power taken away from parents in children’s eyes, they have been left to learn from wrong ideologies. It is a very difficult situation. Principles and all the great things this country was built on are seen as bad things in their eyes. And I agree, you are right, one day they will understand….but by then it will be too late.
it saddens me to see the same bs tearing apart our country (the same bs obama’s campaign run this last election) here on this blog. for those of you out there that lack enough intelligence to see what is happening it is a military tactic of the oldest agenda, divide and conquer. this fiscal cliff bs is not democrat or rebublician , it is established politicians from both parties that are staging this to get to a bottom line without infuriating a massive group of voters. the bottom line will be ss and medicare insurance for future generations. these are not entitlements as they are leaning toward , they are insurance , just as life insurance,or health insurance , set up to fill in the gaps left after years of taxation burden have dwindled any savings and future buying power. have you heard any of established media suggest any other alternatives, like politicians take a pay and benefit cut, or president take one less vacation to burma or hawaii, or a better idea might be a campaign tax . 90% of all campaign contributions whether purchased or given in form of a news story should be taxed and used to pay down the national debt. maybe the voters could then see the true colors of the candidates that are running for each office, instead of the smut and the slurs and false promises from those that wish to be false gods ,and continue politics as usual. WAKE UP OUT THERE BEFORE OUR COUNTRY IS GONE I’M ASKING THIS IN THE NAME OF MY CHILDREN AND MY GRANDCHILDREN AS WELL AS YOURS.
This is just the tip of the iceberg. More and more of the cost will end up being funded by State coffers and before all is said and done you’ll be lucky to keep enough of your paycheck to keep a roof over your head and food on the table. Then when you fall ill due to the forced poverty, you can stand in line for substandard care while they watch you die.
Now-a-days it is expected that parents pay for their kids college education. When you have college students applauding because they can stay on mom and dads insurance until they are damned near 30 years old. It is obvious this is a generation that will never grow up until the feces hit the air circulating device and all this entitlement, welfare, ObamaCare, etc., etc. finally comes due and they are sitting around discussing the latest iphone, ipad, and lamenting they can’t get a decent paying job with their degree in Womans Studies, Black Studies, and other inane college time/money wasters.
Those who serve in the military, are in college getting degrees in the hard sciences, engineering, medical fields, or those youngsters who learn a trade, plumbing, tool and die, machinist, all skills desperately needed by American businesses are to be commended. Unfortunately the responsible youngsters of today seem to be out numbered.
Yes, we will be gone. You, and your children’s children will pay the price for your simplistic understanding of the world. Good luck, you certainly are going to need it.
You should care when you run out of other people’s money and you will YOU”RE SCREWED!!!!
I know your Mother and Father as so proud of you living in their basement. Go get a job and act like a responsible adult.
and that is what’s wrong with young adults, you don’t care about anything except yourselves. The future is coming, and just where will you be?? Living off the government,and sapping the system?? You need to start caring or you will find yourselves up a creek without a paddle!
Obviously, you subscribe to the economic principle that money grows on trees.
You are definitely one of the dupes hired for Obama’s White House Internet Tactical Effort.
What grade are you in?
Only in your own mind full of self-adoring fantasy would that be true. You fantacize that to be what people think, but people just move right past your name and identify you with all the ludicrous notions in your text.
You are a poor excuse for a Walter Mitty impersonator.
Oh no, your a woman? Now they are really going to hate you.
The children today are the offspring of what was called the “ME generation” because they were so much more self-centered than previous generations. What we are observing today is a progression and enhancement of that “ME generation”.
Possibly rrelated, it was the ME generation that was duped on a large scale by the Democratic Party and so-called “mainstream” media to believe the United States was the evil in the world.
That erroneous indoctrination of false history and fraudulent information has never been been identified by the elders for the young people today, thus they are not aware that they are the product of a duped society, and are subject to increased indoctrination by the very same Democrats and “mainstream” media.
What we have, as a result of a couple of generations being duped, is exactly an Idiocracy.
The results are very predictable.
You were never a slave. Nobody you ever met in your life was ever a slave. You know nothing about the subject.
And, there doesn’t exist a race that was not enslaved at some time. Get over yourself. You’re just another person. Get a job. Earn a living. Pay some goddam taxes.
And, you need to learn some recent American history, say from about the time the most prominent Democrat in the Unitede States aside from the sitting president was convicted while spying for the Soviet Union. It’s very different than the fraudulent system of lies you and the rest of the country were indoctrinated with.
Shall we begin your lessons?
Calculus?
Explain the FTC.
Explain the proof.
You don’t have a clue what I’m talking about, do you?
When you enter college, you will discover that Calculus is an entry-level freshman course.
You will become acquainted with the FTC and the proof, then you will begin to learn the tools of Calculus.
It’s a lot different than what you’re being told is Calculus by those so-called “progressive” teachers.
Thanks for working, Suzy. That is what makes you different. That will make the difference in your life. We’re working for you. Don’t change.
I’m hoping they’re studying something useful in the economy, like engineering or science. The last thing we need is more political science (i.e. fraudulent history) or fine arts majors. Those subjects are worthless in the economy.
If you study economics and (actual) history, the political “science” will fall out as a spillover effect.
Fine arts is a good subject to be familliar with during a discussion at a social soiree, and that’s about it.
There isn’t a shortage of jobs in this country. There is a shortage of qualified people to fill them. The more people that qualify themselves for these jobs, the greater the effect of spillover jobs being created will be.
The more people that have to be supported by the people who qualified themselves for these jobs, the greater the effect will be fewer people choosing to make the sacrifices to qualify for these high paying jobs because they won’t be getting that much more than someone who plays basketball at midnight every night.
Suzy the tax payers do not owe you an education. No matter what your GPA is.
Suzy the Tea Party believes in the Constitution and protecting the Bill of Rights. Those documents are as relevant today as the were when they were written. Our country continues to become more and more socialistic. Socialism never works. Our economy is failing, while entitlement and spending is growing. Sacrifices must be made on all levels. We cannot continue down this path. Freedom and liberty are worth defending. Our country was built on the idea that government should be limited.
You don’t think too much differently than one of my sisters. But, she was also a Democrat for more than 40 years when Democrats were spitting on veterans returning from Vietnam and slandering them with lies. They were ignorant dupes then, and that hasn’t changed.
And, get over yourself. You seem to be rather typical of the horde of indoctrinated dupes.