No, I don’t qualify as rich, but my chronically ill wife and I will again be paying taxes under the legislation created by the Democrats and signed into law by Obama.
Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — due to healthcare reform, according to the Joint Committee on Taxation, Congress's official scorekeeper. The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.Taxpayers can currently deduct medical expenses in excess of 7.5 percent of their adjusted gross income. Starting in 2013, most taxpayers will only be able to deduct expenses greater than 10 percent of AGI. Older taxpayers are hit by this threshold increase in 2017.
Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year. These taxpayers are single and joint filers, as well as heads of households.
"Loss of this deduction will mean higher taxes for 14.7 million individuals and families making under $200,000 a year in 2019," Sen. Chuck Grassley (R-Iowa) told The Hill. "The new subsidy for health insurance would not be available to offset this tax increase for most of these households."
Good grief – we blow past that 7.5% mark every year just by purchasing my wife’s medication. That does not include doctors, medical equipment (we’re looking to replace her wheelchair in the next few months), dental care or other medical expenses. Nor does that include MY medical expenses – my diabetes medication and supplies are not nearly such a burden financially, but do add up when included with visits to the doctors, lab work, or other medical care. Medical expenses of 10% are a minimum each year – and 15% is not unheard of in years when there is a hospitalization or surgery. Given some things that I expect to see come our way between now and the end of 2010, I would not be surprised to see the figure for the year reach 20%, or even a bit higher. And when one considers that we are already going to get hit with higher taxes because of limits on our medical flexible savings account, I count two increases in my taxes under the legislation – and depending on whether or not I am deemed to have a “Cadillac plan” (what a joke!), I could get a third one despite making significantly less than $200K a year. And that doesn’t include the higher insurance rates and higher medical costs that every analyst has already said are inevitable for most Americans under ObamaCare.
Aint’t it great to know how wonderful ObamaCare will be for those of us in the working middle class? Less health care, more taxes. Oh happy day!
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