OBAMACARE: Find out what’s in it (detailed tables)

Remember When Candidate Obama promised that under his Administration 95% of Americans would not experience an increase of one dime in the amount of taxes they paid? Having trouble remembering that? Well here it is, in his own words:

Well, as it turns out, that was a complete lie. As you might have guessed from Nancy Pelosi’s arrogant remarks leading off this post, it has to do with Obamacare. You see, this sink hole of a new law is in fact also the single largest tax increase in American history. And, as you might expect, it is not just being levied on the, “rich.” We all get to share in this joy.   Here is the list of tax hikes which resulted from Obamacare. 

Individual Mandate Excise Tax(Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following.”

1 Adult 2 Adults 3+ Adults
2014 1% AGI/$95 1% AGI/$190 1% AGI/$285
2015 2% AGI/$325 2% AGI/$650 2% AGI/$975
2016 + 2.5% AGI/$695 2.5% AGI/$1390 2.5% AGI/$2085

Employer Mandate Tax(Jan 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. This provision applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).

Combined score of individual and employer mandate tax penalty: $65 billion/10 years

Surtax on Investment Income ($123 billion/Jan. 2013): This increase involves the creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single). This would result in the following top tax rates on investment income

Capital Gains Dividends Other*
2010-2012 15% 15% 35%
2013+ (current law) 23.8% 43.4% 43.4%
2013+ (Obama budget) 23.8% 23.8% 43.4%
*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8% surtax does not apply to non-resident aliens.

Excise Tax on Comprehensive Health Insurance Plans($32 bil/Jan 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions exists a higher threshold ($11,500 single/$29,450 family). CPI +1 percentage point indexed.
Hike in Medicare Payroll Tax($86.8 bil/Jan 2013): Current law and changes:

First $200,000
($250,000 Married)
All Remaining Wages
Current Law 1.45%/1.45%
2.9% self-employed
2.9% self-employed
Obamacare Tax Hike 1.45%/1.45%
2.9% self-employed
3.8% self-employed

Medicine Cabinet Tax($5 bil/Jan 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)
HSA Withdrawal Tax Hike($1.4 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
Flexible Spending Account Cap – aka“Special Needs Kids Tax”($13 bil/Jan 2013): Imposes cap of $2500 (Indexed to inflation after 2013) on FSAs (now unlimited). . There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.
Tax on Medical Device Manufacturers($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. Exemptions include items retailing for less than $100.
Raise “Haircut” for Medical Itemized Deduction from 7.5% to 10% of AGI($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI; it is waived for 65+ taxpayers in 2013-2016 only.
Tax on Indoor Tanning Services($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons
Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D($4.5 bil/Jan 2013)
Blue Cross/Blue Shield Tax Hike($0.4 bil/Jan 2010): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services
Excise Tax on Charitable Hospitals(Min$/immediate): $50,000 per hospital if they fail to meet new “community health assessment needs,” “financial assistance,” and “billing and collection” rules set by HHS
Tax on Innovator Drug Companies($22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.
Tax on Health Insurers($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year. The stipulation phases in gradually until 2018, and is fully-imposed on firms with $50 million in profits.
$500,000 Annual Executive Compensation Limit for Health Insurance Executives($0.6 bil/Jan 2013)
Employer Reporting of Insurance on W-2(Min$/Jan 2011): Preamble to taxing health benefits on individual tax returns.
Corporate 1099-MISC Information Reporting($17.1 bil/Jan 2012): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers
“Black liquor” tax hike(Tax hike of $23.6 billion). This is a tax increase on a type of bio-fuel.
Codification of the “economic substance doctrine”(Tax hike of $4.5 billion). This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed

In a completely dishonest and by the way discredited effort to make this disaster, “budget neutral,” raising money in the form of taxation became necessary.  Dishonest, in that we were promised and told repeatedly that there were no new taxes in it.  As a matter of fact, even as Obama’s lawyers were in court claiming that the government has unbridled authority to tax the living snot out of us, he was on T.V. and radio telling us that there were no taxes in it for us non rich folk to be paying.  A Federal Judge threw this argument out last month.    Discredited, in that in every instance where we have raised the rates of taxation in this country, revenues to the federal coffers have declined.  I have argued with leftists on this point often, showed them the statistics, all to no avail.  It has to do with the multiplier effect, which is also included in the Keynesian theory they hold so dear. 

What this shows of course, is that Obamacare is less about health care, and those poor folks who can’t afford medical treatment than it is about wealth redistribution and government control.  We have the best health care system in the world.  We are now in the process of wrecking it, or trying to save it, depending on which side of this you are on.  When foreigners get truly sick, they come to the U.S.A. in order to get better.  We are now putting ourselves into the third world on purpose with this new law.  Perhaps, our Representatives should have read it prior to passing it. 

Another discussion about budget neutrality.  This is a term our President bandies about and the media blindly follows suit with designed to make people believe that they won’t have to foot the bill, (at least not in terms of paying more for something.)  All it means is that for every penny the government plans on spending, they plan on taxing us, in order to keep it a zero sum game.  So, when they pass a $1Trillion entitlement, in order to keep it budget neutral, they need to raise $1Trillion in new taxes.  Do you see the problem?  On the one hand, they told us that wrecking the best health care system in the world would save us money.  On the other hand, they had to use smoke and mirrors to make us believe we would not be paying more for it while they are preparing to bleed us dry for it. 

The real answer to our budget problems is not, as a former co-worker put it, Rocket Surgery.  It is simply a matter of not spending money.  The entitlement programs we already have are not sustainable.  We certainly can not afford new ones.  I would say that an irresponsible congress spends money like drunken sailors, but that is not fair to drunken sailors.  When they go on a bender, at least they are spending their own money.  Congress is spending ours.


As a graduate of The Ohio State University, I began working as an Assistant Manager in a Woolworth store in 1986. After spending 19 years in retail management, I decided to change my life. I transitioned into the Financial Services industry. I currently work as a Financial Planner with my own firm in Rocky River, Ohio. Along the way I managed to collect 4 children and two ex-wives. My political views started out on the left, but as time went on, and I realized that consequences mattered, I gradually became more conservative. On another note, as I am brand spanking new to this blogging thing, please feel free to leave comments as to how I can improve in any comment thread. Thank you for your help.

  1. I don’t see how this will be enforceable on people who have consistently said no from the beginning. The Obamacare rebellion will not be pretty.

    1. It’s also interesting to note how the new taxes progress. On the front end, the new taxes serve only to drive up the costs of care. This will make insurance more expensive, and eventually all insurance plans will be, “Cadillac Plans.” The only possible result of this will be the bankruptcy of anyone selling private health insurance.

  2. I am the only one working in our household and I have to pay $200.00 a week( yes a week ) for just me in health insurance. What do I bring home money wise not much. My husband is retired and all his SS goes for his insurance. Someone has to do something.Why should the working people have to pay for insurance when their is lazy people, foreigners getting their medical bills paid for nothing. I along with all other tax payers are paying for theirs and then having to pay for their own insurance. There is something wrong with this picture. Americans can’t get ahead in this day and time.

  3. I think all of this is common sense. I mean regardless of what he said about people not seeing an increase of taxes…it was only common sense for it to happy. How else could there be socialized health care in this country? The only way to fund it is to raise EVERYONE’s taxes not just the rich. And if it would be solely through the rich then it would end up hurting us in the long run because it is the rich that give us jobs, products, services and things we need to survive. So for anyone to actually believe that lie out of his mouth for one second with the thought of him wanting to establish Socialized medicine then you were wrong from the beginning. Look at England as an example. Their health care doesn’t come free. There is an expense they pay for through taxes.

    Let this be a lesson to those when they are listening to campaigns…do not believe utter lies like this. Process what is being said and ask yourself how can it happen and at who’s expense? Like I said, this was a lie when he said it and we knew it then, not now.

    1. Alison, great analysis. I just disagree on one minor point. There were a few of us shouting to the hills about what a snakeoil salesman we saw in Obama. There were not a lot of believers. the MSM did a great job of not reporting on anything he said about his march to socialism. There is a great example of this in John Ziegler’s documentary, “Media Malpractice; How Obama Got Elected.” The good news of course, it is easier to hide a candidate from the American people than it is a President. Americans now know who and what President Obama is. The decision in 2012 will at least be an informed one.