Obamacare Kicks In, Surprising Even Democrats

As Pelosi warned, Obamacare had to be passed before we really found out what was in it. Some Democrats who blindly rubber-stamped Obama’s health care bill are now facing consequences of what they voted for and are unpleasantly surprised.

The tax on medical devices contained in Obamacare is going into effect at the start of 2013 and some Democrat Senators from states abundant with device industries are now trying to delay that tax because of the adverse economic effect it will have. It seems that Democrats’ love of tax hikes does not apply to taxes on constituents in their district.

That tax on medical devices, originally intended only for devices used on humans, is now going to burden veterinarians, too. It seems that government bureaucrats have determined that medical devices used by veterinarians could also be used on humans, so they will be taxed. Not many saw that coming.

Another hidden cost due to mandated coverage of pre-existing conditions is going to squeeze medical plans for $63 per person, a cost that will be passed on to the insured. The promise of medical insurance costing less under Obamacare has yet to materialize. Perhaps Pelosi will tell us it has to cost more in order to be cheaper.

Obamacare (a tax that is not a tax?) is increasing other taxes. Health care flexible spending accounts which allowed tax-free dollars, usually in the amount of $5000/year, to be used for health care costs are now going to be limited to $2500/year. The increased tax will affect many of the middle class as will the change in deductible medical expenses if you itemize deductions. Medical expenses exceeding 7.5% of your adjusted gross income used to be eligible for deductions but will now have to exceed 10%. (Taxing the sick?)

Fear not, however, because those making more than $200K/year will see higher Medicare taxes, paying in an additional 3.8% tax on their investment income. Obama’s war on the rich began long before it became fashionable and this tax on the rich will, no doubt, make everyone forget that the middle class is taking a tax hit with Obamacare. Smoke and mirrors always seem to work and taxing the rich solves everything.

David J. Hentosh

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