One reason (of many) the opponents of Obamacare don’t like the law, is that taxes are attached to support the program. There are a number of them and include (from Forbes):
- 2.3% Tax on Medical Device Manufacturers (this doesn’t hit you directly, but indirectly it sure can).
- 3.8% Net Investment Income Tax. This one is a big one. Depending on your income, it adds a 3.8% tax on top of your interest, dividends and capital gains.
- Insurance Plans (40% excise tax on the portion of employer-sponsored health coverage that exceeds $10,200 a year and $27,500 for families).
- Medical Deduction Threshold tax increase (threshold to deduct medical expenses as an itemized deduction increases to 10% from 7.5%).
- Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D.
- Medicare Part A Tax increase of .9% over $200k/$250k.
- Over the counter medicines no longer qualify as medical expenses for flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), health savings accounts (HSAs), and Archer Medical Saving accounts (MSAs).
- Additional Tax on HSA/MSA Distributions
So how is the proposed replacement program supposed to generate enough revenue while making things better – and, by the way, getting rid of all those nasty taxes (for a more complete list from Forbes click here)? And at the same time, of course, the new program will be “saving money and lowering premiums.” Where are the deficit hawks when we need them? The math doesn’t compute. Services, coverage, and access will be cut.
The AARP in its letter to Congress opposes the “repeal and replace” plan: Click here to view the AARP Letter to Congress on the American Healthcare Act
There is similar opposition from the AMA and ANA. Big Pharma is keeping quiet, no surprise. They don’t want Medicare to be able to negotiate drug pricing.