Obamacare’s Taxing Problem
“MANDATE TAX” INSUFFICIENT FOR COVERING COSTS
U.S. President Barack Obama has a big problem on his hands as his second term gets underway … and it’s not just the ongoing sluggishness of the American economy.
In order for his signature socialized medicine law to work as planned, millions of Americans must be compelled to purchase health insurance. That’s precisely why “Obamacare” included a controversial provision mandating the purchase of health insurance – forced marketplace participation which has been (erroneously) approved by the U.S. Supreme Court as a proper extension of the government’s right to tax.
Here’s Obama’s problem, though (well aside from the crippling impact of tax hikes on economic growth). For most income earners, paying this tax will be cheaper than paying for insurance – thus removing the incentive for millions of them to do precisely what Obama needs them to do.
“In 2014, the first year that the tax will be collected, the tax is $95,” reports Adam Bitely of Net Right Daily. “It will increase to $325 or 2 percent of your income in 2015. In 2016, it will increase to its highest amount of $695 or 2.5 percent of your income. Even at its highest point, the tax is cheaper than health care in some cases.”
What does this mean? Unless Obamacare’s individual mandate “tax” is raised during Obama’s second term in office, there’s no way this monstrosity is going to stay afloat.
This is no secret … in fact it was a point raised repeatedly during the “debate” over the passage of this legislation.
Of course it wasn’t raised during Obama’s reelection because the Republican nominee, Mitt Romney, was also a supporter of socialized medicine – along with the right of government to mandate the purchase of health insurance.
How does Obama intend to address this discrepancy? By raiding your wallet/ pocketbook for additional funds, of course … the same way he paid for all that economic “stimulus” we’re currently enjoying.