Here comes the ObamaCare tax avalanche

At its core, ObamaCare is three things: a massive expansion of Medicaid; a set of complex mandates to control both insurance providers and customers; and the largest tax increase in a generation, much of it levied against the middle class.  Because it is politically vital to hide tax increases from the Sainted Middle Class, much of this burden is hidden as pass-through taxation – you think your premiums are increasing, but it’s really an income redistribution scheme with the tax burden laid on insurance providers, who pass it along to you.

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The Unsung, But Massive Obamacare Sales Tax Increase That Is On the Way

Today, America’s Health Insurance Plans (AHIP) President Karen Ignagni issued a press release in support of bipartisan legislation (H.R. 1370, S.1880) co-sponsored by Rep. Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the Affordable Care Act’s (ACA) health insurance tax. While much of the dialogue on healthcare reform centers on the federal mandate of health coverage for all Americans – which many conservatives call the largest tax increase in U.S history – less attention is being given to the massive sales tax increase on the purchase of health insurance also implicit within the legislation that will dramatically escalate costs for employers and consumers.

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Seven Myths About Taxing the Rich

Curtis S. Dubay, Senior Analyst in Tax Policy in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation, discusses the effect of President Obama's plan to raise taxes on high income earners and Rep. Rangle's (D-NY) plan to levy a surtax on these earners to help fund government-run health care in Backgrounder #2306, Seven Myths About Taxing the Rich. For a brief summary of the seven myths...

Myth 1: Raising taxes on the rich will close budget deficits.
Truth: Increasing the progressivity of the income tax code by raising the top two rates will not close the deficit. In fact, it will lead to more revenue volatility, which will lead to larger future deficits.

Myth 2: The rich do not pay their fair share.
Truth: The top 20 percent of income earners pay almost all federal taxes.

Myth 3: The income tax code favors the rich and well-connected.
Truth: The bottom 50 percent of income earners pay almost no income taxes and the poor and middle-income earners benefit greatly from the tax code.

Myth 4: It is all right to raise tax rates on the rich-- they can afford it.
Truth: Just because someone can afford to pay higher taxes does not mean he should be forced to do so.

Myth 5: Higher tax rates in the 1990s did not hurt economic growth, so it is all right to raise them to those levels again.
Truth: High tax rates in the 1990s were a contributing factor to the 2001 recession and returning to those rates will damage the already severely weakened economy.

Myth 6: The 2001 and 2003 tax cuts did not generate strong economic growth.
Truth: The tax cuts generated strong economic growth.

Myth 7: Raising the top two income tax rates will not negatively impact small businesses because only 2 percent of them pay rates at that level.
Truth: Raising the top two income tax rates will negatively impact almost three-fourths of all economic activity created by small businesses.

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