The re-election of President Obama means Uncle Sam is only going to grow larger. As the new year arrives, Americans are likely to see with their own eyes the consequence of their choice of chief executive as health care costs escalate thanks to Obamacare.
Provisions of the law that take effect in the new year will reveal the true price tag of the president’s signature health care system in the form of five new taxes. Starting Jan. 1, a 2.3 percent medical device tax will be imposed on the miracles of modern medicine such as heart pacemakers, stents, prosthetic joints and diagnostic scanners. The levy will apply to sales, not profits, so startup firms that might be just breaking even could be pushed into the red by Obamacare. With 80 percent of medical device companies employing fewer than 50 people, the tax is a disincentive for small firms to stay in business — exactly the opposite of the effect needed to jump-start the nation’s flagging economy.
Obamacare will raise the threshold for the tax deductibility of medical bills from 7.5 percent of adjusted gross income to 10 percent, making it harder to write off the cost of health care. Pre-tax flexible spending accounts, which 24 million consumers rely on to pay for medical bills and currently have no federally imposed limit, will be capped at $2,500. These two provisions mean a greater share of families’ income must be devoted to health care, contrary to the promises Democrats made when selling the plan to the public in 2010.
Via: Washington Times
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