I have already discussed the Supreme Court’s ruling on Obamacare. I have also discussed how it might be overcome in the future. For this post, I want to discuss some of the taxes associated with Obamacare.
Of course, the big part of the legislation that most everyone is focused on is the individual mandate. John Roberts ruled that this was a tax and was therefore constitutional. Whether it is a tax or isn’t doesn’t really matter about its constitutionality. By Roberts’ logic, the government can now just tax anything, even if it is one dollar, and then it will be constitutional.
Aside from the penalty (or tax) associated with the individual mandate, there are many other taxes associated with Obamacare, many of which have already taken effect. Here is a good list to look at.
Apparently Obama has something against white people or those who serve white people as customers. Since 2010, there has been an additional 10% tax on indoor tanning salons. While some people think these are unhealthy, they can actually a be a good source of vitamin D, which can be very beneficial to your body. Aside from this, even if people just want to look better with a tan, why is this the federal government’s business?
There is a tax that I have been paying for the last year and a half. Every time I buy over-the-counter medication, I cannot use my HSA account. In the past, you could use pre-tax dollars for things like tylenol and sinus medication, even if you didn’t have a prescription. Thanks to Obamacare, you now have to use after-tax money. By eliminating this deduction, it is a tax increase.
In 2013, there will be a new 3.8 percent tax on investment income for higher earners. This may end up being on top of the massive tax hike coming with the expiration of the previous tax cuts. You could have some people paying capital gains taxes of well over 40%, just on federal taxes. Is this a potential reason to short the stock market in the near future? This cannot be very appealing to investors.
Aside from these and many other taxes from Obamacare, it is also a nightmare for both big and small businesses. It is more regulation and more expense. This has already happened, particularly with health insurance companies. It is simply more rules and more bureaucracy. It also makes it more expensive to hire people. It is just another reason to add to the list of reasons why unemployment is so high due to overbearing government.
Obamacare is probably not the worst thing to ever happen to America, but it is another big government piece of legislation that adds a few more straws to the camel’s back. It is bad for business and it is bad for Americans, whether they know it or not.