Thursday, October 11, 2012

ObamaTax Meets RomneyCare

No matter how much the current administration wants to deny it, the US Supreme Court has declared the Obamacare penalty a tax.

No taxes on the middle class was the promise. The only thing that was not said was "Read my lips".

"At some point you have earned enough. Time for the wealthy to pay their fair share."

It appears many of the wealthy live in Massachusetts. A recent report on the Obamacare Cadillac tax reveals things you need to know  . . .  especially if you like the plan you have and you think you can keep it.
The Pioneer report finds that given the Commonwealth's high insurance premiums, a majority of workers in Massachusetts will pay the tax starting in 2018. At the individual level, the report examines the impact of the excise tax on a small business employee, a police officer, and a teacher.
For the 10 years following the introduction of the tax:
  • Business employee on a family plan will owe $86,905 in additional taxes.
  • Police officer on a family plan will owe $53,907 in additional taxes.
  • Teacher on an individual plan will owe $20,807 in additional taxes.

Section 9001 of Obamacare imposes an excise tax on employer sponsored group health insurance plans where the value of the benefit exceeds $10,200 per individual or $27,500 for a family.

Some of the highest health insurance premiums in the country exist in Massachusetts and has the potential of generating the tax liabilities shown above.

The tax is assessed and payable over and above your insurance premiums and is not offset by income brackets. In other words, it doesn't matter if you earn $50,000 per year or $500,000 per year. The tax will come due.

Pioneer estimates roughly HALF the workers in Massachusetts will be liable for the tax.

The good news is, this tax penalty is not imposed until 2018 . . . long after the current White House resident, and many members of Congress that constructed this law, have long gone.

The gift that keeps on giving, except this is more like a sexually transmitted disease.

Thanks to Henry Stern for passing this along.
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