Tuesday, July 10, 2012

Obamatax’s ‘HIT’ on Small Businesses and Families

President Clinton recently created quite a stir when he suggested Congress should act to prevent massive tax hikes that will automatically occur at the end of the year. Even President Obama once admitted that “you don’t raise taxes in a recession.”
Unfortunately, the tax policies in the president’s signature health-care law ignore this advice. The Supreme Court’s decision last week does not change the fact that the scandalous new tax on life-saving medical devices (of all of the new taxes tucked into the law) had received the most prominent attention prior to the Supreme Court’s ruling, most notably when the House recently voted to repeal it.
As we continue to review last week’s sweeping decision and its consequences for the American people, it is worth taking stock of Obamacare, perhaps now better named “Obamatax,” starting with a less-well-known $87 billion tax buried in the law that could force families to pay an extra $500 a year in premiums. The tax is described in the law as an “annual fee” levied on insurance companies. Actually, the fee is really just a tax by another name — the health-insurance tax, or HIT, in this case. Tax economists — inside and outside government — agree that the bulk of new fees and taxes are simply passed by businesses on to their customers, which, as we’ll see, in this case are small employers and families. Unless this tax is repealed, it will soon force families and small businesses to pay even more for their coverage.

Read more: http://www.nationalreview.com/articles/306577/obamatax-s-hit-small-businesses-brand-families-richard-burr

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