New Obamacare Taxes as of 1 January 2011
You thought it was bad that the Bush tax cuts might not be extended? Yes it is: but wait! There’s more:
As listed by Americans for Tax Reform, there are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:
The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.
The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, putting the HSA at a disadvantage them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
You’ve already heard about the Tanning Bed Tax, which went into effect already on July 1, 2010.
And there’s more–these are just the ones that take effect January 1st. Also starting on January 1, your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does not matter if that’s a private concern or governmental body of some sort, whether you’re actively working or retired.
All this from the man and the party who repeated again and again that he would not raise taxes on family incomes of $250,000 or less. These are all across-the-board increases.
This is also the party that claimed their health care bill would reduce health care costs. Clearly that’s not happening either.
What can you do?
First, vote “Yes” on Amendment 63, Freedom of Health Care choice. It won’t stop the taxes but it will prevent you from being stripped of your current plan and forced into the government plan.
Second, support the lawsuit that seeks to have the the bill declared unconstitutional. Because it doesn’t contain the usual “severability clause,” once any part is declared unconstitutional, the whole thing is thrown out taxes and all.
Third, vote the bums out who voted for this monster. If we don’t vote them out on November 2nd, we may never have another free and fair election.
Fourth–and maybe most importantly–hold the newly elected office holders at all levels of government responsible to the people and our Constitution.
To mangle John Paul Jones a bit: We have not yet begun to fight!
(Note: I am indebted to Kerri Wright for the tip-off on the new taxes. I’ll be discussing Amendment 63 with Michelle Morin on Reclaim the Blue Radio Saturday at 9am, KZNT 1460 AM.)