by Mitch Kokai
Senior Political Analyst, John Locke Foundation
By passing legislation repealing ObamaCare through budget reconciliation, lawmakers have an opportunity to remove nearly 20 taxes which will save taxpayers more than one trillion dollars over the next decade.
Repealing these taxes is a huge win for middle class taxpayers, who were hit with an avalanche of tax increases despite Barack Obama’s “firm pledge” not to sign “any form of tax increase” on any American making less than $250,000.
The trillion dollars in higher taxes have restricted health care choice, increased costs, made saving more difficult, and granted government more control over care at the expense of individual control. …
… 1. Individual and Employer Mandate Taxes
ObamaCare enforces many of its provisions through stiff tax penalties both on individuals and on businesses.
Any individual that fails to purchase “qualifying” health insurance – as defined by President Obama’s Department of Health and Human Services – must pay an income surtax totaling more than $2,000 for a family of four. Close to 7.5 million households paid this tax – which the Obama administration refers to with the Orwellian name “shared responsibility payment.” Most make less than $250,000.
Similarly, the law forces employers to pay a $2,000 penalty per full time employee if that fail to offer qualifying insurance. This mandate increases taxes on businesses by $166.9 billion over a decade.
2. Taxes on Health Insurance, Prescription Medicine and Medical Devices
At the same time ObamaCare mandates insurance coverage, it directly drives up the cost of that insurance through a massive tax totaling $130 billion over the next decade. This tax is borne by small businesses, individuals and families through higher premiums.