Obamacare as a Tax

Taxes 1

The Supreme Court says that Obamacare is a new tax on Americans. 

President Obama agrees. 

That is the basis for the Court’s decision to allow the mandates forcing the American people to buy insurance stand. They are not, in the Court’s view, a mandate to purchase a product. They are, rather, a tax on the American people. 

Ok then, let’s look at Obamacare as a tax. 

Based entirely on what I saw when I went to the website yesterday, this new tax is a hefty one.

Let’s look at the lower end of the income spectrum first. Based on what I saw when I visited the healthcare.gov website, if you have a family of four with two children under the age of 18, and your family income totals less than $35,000 per year, your premium for Obamacare will be somewhere around $1200/year. That comes to a hike in your monthly taxes of about $100/month. 

I am using Oklahoma figures for this estimate, and Oklahoma did not set up a health care exchange. It may be better for those in other states. I hope so. 

My husband and I had a monthly income even lower than this when our kids were little. We qualified for free and reduced lunches at school. A car with 100,000 miles on it was new to us. My husband did all our auto repairs himself, in the driveway in front of our house. I carefully balanced meals to keep us well fed and the grocery bills do-able. Both my husband and I went without clothes, new glasses (even when we were having trouble seeing) and dental work so the kids could have those things.

I can tell you that an extra $100/month tax hike would have been a big bite for us back then. It would have had to come out of necessity money. 

Now, let’s go to the other end. Consider those “wealthy” families of four with two kids under 18 who have a combined family income of $90,000 per year. Housing/automobiles/education/clothing/food/gasoline/etc are all massively more expensive now than they were even a few years ago. If the house hunter shows I watch on HGTV are accurate, home ownership (at least on the coasts) is totally out of sight for the family that makes $35,000/year and barely in sight for the $90,000 earners. 

If a simple three bedroom one bath house costs between $200,000 – $300,00 and even a modest new car costs over $20,000 and a community college with the kid living at home costs $4,000-$5,000/year and gasoline hovers around $4/gallon, as does a gallon of milk, then $90,000 only seems rich to those who are barely scraping by. 

Add another $6,000 or $7,000 in annual taxes for healthcare that was previously paid for by your employer (this is a bit of conjecture that employers are going to be less inclined to provide health insurance after Obamacare sinks in) and things start looking almost as dicey for these $90,000 earners as it did for my husband and me back in the day. 

The point here, at least for me, is that the primary winners in the Obamacare sweepstakes are the insurance companies and a few favored recipients such as Planned Parenthood. In exchange for guaranteed minimum coverage and paying for abortions they get government enforced enrollment in their wares and their premiums become a tax. 

I’m not talking here about the serious considerations of cost to the tax payer in terms of government expenditures to underwrite this plan. That is going to come around and bite us in a more indirect, but perhaps more damaging way as time goes by. 

I personally think that there were any number of better ways to provide health care for those who didn’t have it. I also do not believe that Obamacare is going to “contain” rising health care costs. I think that, by underwriting them, it will probably turn health care costs into something akin to the defense budget and largesse to corporations — an ever-enlarging pork barrel that devours the treasure of this nation. 

Will Obamacare “work?”

Probably. At least somewhat. 

I think that it will provide health care insurance for most Americans. 

But it is also going to eat into their personal finances. What our elected officials don’t seem to get is that the American people are stretched financially like a piano wire already. They’re having to work more than one job each, just to make ends meet. Every passing year, inflation (which government formulas no longer accurately represent) eats deeper into their already stretched budgets, and every passing year, their incomes stagnate or fall. 

Good jobs keep going away. For decades now, the news has been about this or that American corporation leaving this country to go use cheap labor elsewhere to manufacture its wares, which it then sells to the American people. 

We are being robbed. 

Will Obamacare fix this?

Does it even address it?

No and no. 

What it does do is underwrite a medical care system that is deeply flawed and overpriced. It puts insurance companies on the government dole and uses a new direct tax on the American people to pay for that. 

I have always believed that this country had to address the need for affordable health care. I am not a neocon. Far from it. I personally know people who forego necessary medical care because of costs. In fact, I have been one of them. 

However, this plan is more an accommodation to special interests than a solution for those problems. There is a limit on what the budget of the ordinary American can absorb. I think this plans pushes a lot people painfully close to that limit. 

The question, of course, is what Obamacare will look like in years going forward. The tinkering with this plan has not even begun. There is also the question of whether or not it will be repealed by future Congresses. 

Personally, I doubt it. Once the plan locks in and the special interests start getting their take, the political will to either repeal or reform Obamacare will vanish like smoke in your morning coffee. 

 See also: Obamacare Threatens to Hit Many Pocketbooks; Health Care Law Fails to Lower Prices in Rural Areas

A Few Quick Takes on Obama’s State of the Union Address

President Barack Obama, official portrait

President Obama gave his annual State of the Union Address tonight.

There were no surprises in the speech. Most of what the President said has been in the news for a long time now. In fact, several of his major proposals, such as gun control, have been the subject of presidential speeches or press conferences in the past few weeks.

I agree with some of his ideas and disagree with others. Quite a bit of the speech was filler of one sort or the other, either introducing people who the president felt would exemplify the need for his proposals, or in just illustrating and explaining what he wanted.

I’ve attempted to boil it down to a few quick takes to make it easier to see where he wants to take the country. We’ve already discussed several of these proposals quite a bit here on Public Catholic. I expect that we will go over some of them in even greater depth in the future.

In the meantime, here are my quick takes on the President’s speech. If you think I left out something important, feel free to bring it up in the comments section.

Jobs, Taxes and Wages

1. … we can’t ask senior citizens and working families to shoulder the entire burden of deficit reduction while asking nothing more from the wealthiest and most powerful … we can’t just cut our way to prosperity.

2. I propose a “Fix-It-First” program to put people to work as soon as possible on our most urgent repairs, like the nearly 70,000 structurally deficient bridges across the country. I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children.

3. Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9.00 an hour. This single step would raise the incomes of millions of working families.

4. Now is the time to reach a level of research and development not seen since the height of the Space Race. And today, no area holds more promise than our investments in American energy.

The Deficit, Health Care & Energy

1. Reduce taxpayer subsidies to prescription drug companies and ask more from the wealthiest seniors. We’ll bring down costs by changing the way our government pays for Medicare, because our medical bills shouldn’t be based on the number of tests ordered or days spent in the hospital – they should be based on the quality of care that our seniors receive.

2. Save hundreds of billions of dollars by getting rid of tax loopholes and deductions for the well-off and well-connected. 

3. My Administration will keep cutting red tape and speeding up new oil and gas permits. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and water

Climate Change

1. We must do more to combat climate change. 

2. I urge this Congress to pursue a bipartisan, market-based solution to climate change, like the one John McCain and Joe Lieberman worked on together a few years ago.

Home Ownership

Right now, there’s a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today’s rates. Take a vote, and send me that bill.

Education

1. Tonight, I propose working with states to make high-quality preschool available to every child in America. 

2. I ask Congress to change the Higher Education Act, so that affordability and value are included in determining which colleges receive certain types of federal aid. And tomorrow, my Administration will release a new “College Scorecard” that parents and students can use to compare schools based on a simple criteria: where you can get the most bang for your educational buck.

Immigration

Real reform means establishing a responsible pathway to earned citizenship – a path that includes passing a background check, paying taxes and a meaningful penalty, learning English, and going to the back of the line behind the folks trying to come here legally.

al Qaeda, Afghanistan, Cyber Terrorism

1. Tonight, I can announce that over the next year, another 34,000 American troops will come home from Afghanistan. This drawdown will continue. And by the end of next year, our war in Afghanistan will be over.

2. Today, the organization that attacked us on 9/11 is a shadow of its former self. Different al Qaeda affiliates and extremist groups have emerged – from the Arabian Peninsula to Africa. The threat these groups pose is evolving. But to meet this threat, we don’t need to send tens of thousands of our sons and daughters abroad, or occupy other nations. Instead, we will need to help countries like Yemen, Libya, and Somalia provide for their own security, and help allies who take the fight to terrorists, as we have in Mali. And, where necessary, through a range of capabilities, we will continue to take direct action against those terrorists who pose the gravest threat to Americans.

3. America must also face the rapidly growing threat from cyber-attacks. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy.

International Trade Agreements 

1. We intend to complete negotiations on a Trans-Pacific Partnership.

2. We will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union.

The Military and Defense Spending

1. We will maintain the best military in the world.

2. We will ensure equal treatment for all service members, and equal benefits for their families – gay and straight.

3. We will draw upon the courage and skills of our sisters and daughters, because women have proven under fire that they are ready for combat.

Long Voting Lines

When any Americans – no matter where they live or what their party – are denied that right simply because they can’t wait for five, six, seven hours just to cast their ballot, we are betraying our ideals. That’s why, tonight, I’m announcing a non-partisan commission to improve the voting experience in America. 

Gun Control 

1. Background checks

2. New laws to prevent anyone from buying guns for resale to criminals.

3. Police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets.

I Have a Photo of the Cause of America’s Deficit (See Below)

This is a 2011 photo of me, standing front of the primary cause of America’s budget deficit.

It is also a photo of our stagnant economy, declining wages and lack of good jobs.

I was standing on Kinmen Island off the coast of Taiwan. The skyscrapers in the background are mainland China.

We built those skyscrapers. We also built the skyscrapers in a lot of places around the world. We built them with our jobs, our industry, our economic base. America has been exporting our industrial base for at least 30 years. Notice, I did not say we’ve been exporting our jobs. We certainly have been sending American jobs away, but unfortunately we sent our industrial base along with them.

60 Minutes ran a story Sunday, October 7, about a Chinese corporation named Huawei. The situation it describes is something of the canary in the mine shaft in terms of warning us about some of the potential consequences of these disastrous policies. You can find it here.

America’s industrial might is being bled out by corporate greed and a government that toadies to the corporations rather than taking care of the American people and the best interests of this country.

All the blather I heard in the first presidential debate on the economy never really addressed this. In my humble opinion, that means they never really talked about our real economic problems. No matter who wins the upcoming election, if he doesn’t do something about this problem, the overall trend of our economy (as opposed to temporary fluctuations) is headed down.


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