Wednesday, July 18, 2012

Obamacare's Working Family Tax increase

Folks, the big "tax" in Obamacare isn't the penalty for not buying insurance, it's the premium you pay for the insurance. 

Obamacare is basically a variation of a sliding scale Medicare tax -- those above a certain amount pay more than the cost of the coverage, and that money collected is shifted to help pay for those who pay less than the actual coverage's value.  This tax/premium is collected by and managed directly by the insurance companies according to the rules set down by the Obamacare bureaucracy.   This bureaucracy has be granted the power to increase this tax/premium as well as modify the coverage provided without consultation with Congress. 

For example, assume that the basic coverage might actually cost 12k for a family -- the actual cost put forth for those in higher incomes might be 20k.  The eight thousand extra charged those over 100k is used to subsidized the coverage for average families of 50k who can't be expected to pay the $12,000 tax for their coverage -- that would be a 24% tax bill on middle class working families.  Instead, middle class families may be expected to pay perhaps $6,000 (or 12%) in income taxes to carriers for their Obamacare coverage, with premium subsidies from those with higher incomes and various other taxes used to make up the rest of their coverage.    Never mind that this is a huge 20% health care tax increase on those with 100k incomes...   There aren't enough of those folks to bend the vote in other directions.

Clear as mud?  Yep -- it's way too complicated for left wing CongressCritters or the PRESSSSident to explain without upsetting middle class families -- many families may only wake up to this huge Obamacare tax when they are formally drowned in Obamacare's first round of taxes/premiums.  

To simplify this just think of Obamacare as a sliding scale Medicare tax for working age folks to pay for working class coverage, on top of paying Medicare taxes.  How much your "tax" is depends upon your income.  

Never mind that little of this is Constitutional as a tax or not... 

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