New Year, New Taxes to Pay For ObamaCare

Much of the debate over the fiscal cliff deal was about whether or not to let taxes rise for the wealthy starting this year. What often got overlooked, though, was that high earners were already set for higher taxes in 2013 thanks to ObamaCare.

The law attempts to offset about half its projected cost through an array of new taxes on everything from investment income to medical devices. And many of those taxes kicked in with the new year.

The biggest of those taxes is a 0.9 percent increase in the Medicare hospital tax for individuals making $200,000 annually and couples earning more than $250,000. Folks at the same income level will also face a new 3.8 percent tax on “unearned” investment income.

The income thresholds create a significant penalty for married couples: Two unmarried earners filing at $200,000 wouldn’t trigger the new tax. But if the same two earners are married, they’ll pay about $1,350 more as a result of the higher rate.

ObamaCare also sets up a 2.9 percent tax on medical devices, levied at the time of sale, beginning this year. But it may not last for long. In a sign of how unstable these taxes are, the GOP-controlled House repealed the provision over the summer—and a handful of Democratic Senators last month urged it be delayed, and perhaps repealed.

Why worry about higher taxes? Because they might cost jobs if device makers relocate to lower-tax nations, Democratic Senator Kay Hagan of North Carolina told NBC News. “There’s so much innovation in this field right now,” Hagan said, “and they do create so many good jobs in our country that we have the risk of losing these jobs to Ireland and to many other countries.”

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  • Killazontherun||

    There’s so much innovation in this field right now,” Hagan said, “and they do create so many good jobs in our country that we have the risk of losing these jobs to Ireland and to many other countries.

    Then why did you vote for it!?!?! Billions spent to subsidize the Research Triangle only to be wiped out by your one vote. You supported the subsidies over your political career, and you support the law that threatens to turn those business parks into empty lots. Progressive aims are not suppose to come into conflict, right? It seems like there might be a law involved, an iron one, maybe.

  • Fist of Etiquette||

    Do you know what would have happened to the Senate Democrat who tanked Obamacare?

  • Hyperion||

    They would be a Republican now?

  • Killazontherun||

    Yeah, she could have just switched parties. NC leans Red, anyway. Unless, the dems have something on her. She is one of the better looking democratic females out there (great ass, too).

  • Tulpa (LAOL-PA)||

    Do I have to conjure Mr. Buttplug to remind you about the DEMOGRAPHICZ?

  • Killazontherun||

    Haven't read his stuff in a while. Does it go like this:

    The republicans are DOOMED I tells ya! People are like a rainbow party now. Colors everywhere. Orange, blue, green, brown, but no white. White is not a color.

  • Rich||

    In a sign of how unstable these taxes congresscreatures are, the GOP-controlled House repealed the provision over the summer—and a handful of Democratic Senators last month urged it be delayed, and perhaps repealed.

    FTFY

  • Hyperion||

    I really believe that the ultimate goal of the progressives is for everyone to live in ultra-dense metro population centers, in little gray cubicle like housing complexes, all of them exactly the same, and everyone exactly equal in income, as distributed by the government. We will all have a government approved and rationed diet, we will all have the same, everything. Our jobs and professions will be chosen for us by government administered placement tests, but they will all pay the same since all funds will be redistributed equally. Our travel will be very limited, going to work, maybe local parks. But in the name of security and 'saving the planet', all long distance travel will be banned.

    The ruling elite class, however, will live in opulent luxury, jetting around the world and living the high life.

    This is what the political elite class have planned for us. And their sheep are going to deliver it for them.

    And no, I didn't get this from reading The Hunger Games. I got it from reading shit written by elitists progressives and environmentalists.

  • Tulpa (LAOL-PA)||

    I hate to be the wet blankie again, but I seriously doubt any of them actually have this vision, even if it's the logical conclusion of their philosophy. It's very likely they just want what they want right now and haven't thought things that far through. Yes, yes, I know about foreseeable unintended consequences, but we're not talking blame here.

    It's too easy to make your ideological opponents out to be moral monsters.

  • nicole||

    Yes, much more plausible to assume they're just morons.

  • ||

    Never ascribe to malice that which can be attributed to stupidity.

  • nicole||

    Never ascribe to anything else that which can be attributed to stupidity.

  • ||

    Well, almost anything. I will certainly ascribe Transformers 3 to malice.

  • nicole||

    And deep dish?

  • ||

    That's just stupidity. Profound stupidity. I hear ProL is so dumb he stayed up all night studying for a blood test.

  • Hugh Akston||

    He was just being prudent. I failed a blood test once.

  • ||

    Hugh's so dumb, he spent twenty minutes looking at an orange juice box because it said "concentrate".

  • Pro Libertate||

    Yeah, well, I passed, bitch.

  • ||

    "I passed...but I failed!"

  • Randian||

    I hate to be the wet blankie again

    No you don't.

  • Hyperion||

    Tulpa, if you don't believe that some of them have this vision, then you obviously never read anything that they write.

    Yes, most of the common folks among the proglodyte just want free stuff, and some just want whatever their idea is of fairness. But some of the elitist ones actually do have a vision like this, and they are dead serious.

  • Jough||

    Yes, because people living in an area too small to grow or raise food necessary for survival is a key component of sustainable living. Which makes sense if you think about it. The caveat being you have to think about with a BAC somewhere around .15

  • RightNut||

    That sounds eerily like the soviet union.

  • Tulpa (LAOL-PA)||

    Earners at the same level will also face a new 3.8 percent tax on “unearned” investment income.

    If it's unearned, they're not earners to begin with, so it doesn't matter.

  • Randian||

    OT: I am really enjoying Chris Christie's tears about the lack of Sandy aid. Like, really enjoying them.

  • nicole||

    I'm confused. Is there a lack of aid? The NPR story I heard the other night said something about how there had already been emergency money sent, but now it was "recovery" or "rebuilding" money they wanted or some shit. Did these assholes actually not already get millions of fedgov dollars?

  • Hugh Akston||

    Grow up, nicole. There's only one answer to how much aid money a state needs.

  • R C Dean||

    Its almost like the Republicans are remembering the last minute boost he gave to Obama with all those Sandy photo-ops and appearances.

  • Hyperion||

    You mean hanging out with Obama and hugging on him and basically kissing his ass, didn't result in a guaranteed megabucks payout for fat boy?

    Damn, who would have guessed that Obama would toss someone aside the minute he no longer needs them for a publicity stunt on the election campaign?

  • Sevo||

    Randian| 1.2.13 @ 5:39PM |#
    "OT: I am really enjoying Chris Christie's tears about the lack of Sandy aid. Like, really enjoying them."

    No, Christie. Fuck you. Cut spending.
    (credit to follow)

  • R C Dean||

    But if the same two earners are married, they’ll pay about $1,350 more as a result of the higher rate.

    I'm looking forward to all the kvetching by newly married gay people when they realize that their certificate of government approval actually comes with a real price tag.

  • RightNut||

    My guess is on balance, married people still get a bit of a tax break in comparison to single people.

  • Adam330||

    My guess is that you're wrong. The tax brackets are all double or less than double for married what they are for single. I don't know of any tax deductions or credits that are available for only married and not single.

  • OldMexican||

    What often got overlooked, though, was that high earners were already set for higher taxes in 2013 thanks to ObamaCare.


    There is also the fact that the maximum amount you can set up for your Flexible Spending Account has been lowered to only $2,500, which is a tax increase since, previously, you could set up much higher levels of non-taxed amounts for your estimated medical expenses.

  • RightNut||

    Yup, one of my family members worked on FSA and HSA accounts for a major financial firm. Right after Obamacare was passed they announced they were shutting that department down. Basically they didn't think their would be any money left after Obamacare regulated it to death.

  • nicole||

    Well considering high-deductible plans don't qualify as "real" health insurance under PPACA, it's hardly a surprise.

  • Hugh Akston||

    Why did young people vote for that dipshit again?

  • Pro Libertate||

    Nihilism.

  • nicole||

    No way, Pro L', I'm the nihilist!

  • ||

    Nihilists? Fuck me. I mean, say what you like about the tenets of crony capitalism, ProL, at least it's an ethos.

  • NihilistZerO||

    More like Masochism LOL!

    As a Nihilist I voted for Gary J... So my vote had no meaning ;-)

  • nicole||

    Some young people, Hugh, some young people. And it's because people are really terrible at understanding statistics. They're much better at being afraid.

  • Sevo||

    "And it's because people are really terrible at understanding statistics."

    Weekend trip on the No Cal coast; beef ranches, lots of them. Every cow has a tag which costs are really worth it since all those people have died of Mad Cow Disease, right?

  • Lady Bertrum||

    Because he's super cool. He's Quentin Tarantino cool and that's all that matters, baby.

  • Killazontherun||

    Paul Revere could have used one of these.

    Check out that medical excise tax. Obamacare is here! Obamacare is here!

  • waaminn||

    Should be interesting to see how that all turns out.

    www.otAnon.tk

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