The Affordable Health Care Act, Obamacare, and Taxes

The recent passing of the U.S. Supreme Court of the Affordable Health Care Act or Obamacare for all Americans comes with mixed blessings for all. Yes, it will provide basic care for all and all must buy it, otherwise, a tax or penalty tax or penalty (whatever you want to call it) occurs. The first time, it is $95, by the 3rd time, $600+. If you own a house and earn over $200,000 from its sale, you have to pay a 3.8% seller tax to the government.

Nothing in the law ensures that people with their policies can keep them. Employers will continue to have the right to modify coverage or even drop it, and some are expected to do so because of the taxes imposed, Kaiser expects to increase the costs to its patrons by at least 10%. There is no guarantee that coverage will become cheaper, despite the subsidies many people will get. Many firms will find that paying the penalty for not insuring employees a better deal than paying for raising medical care for them. Tax increases will be on upper-income people, health insurance companies, drug makers and medical device manufacturers. So, they do have something to grip about.

But, this health care has to be paid somehow. The Patient Protection and Affordable Care Act (PPACA) creates a health insurance tax (HIT) on mostly small business employers. The premiums will rise for them. Because of this, unemployment may rise because they cannot afford the costs and neither can the employees. To keep costs down, they would not hire. Large firms face a 35% tax also, this will make some to take business elsehwere.

The whole Act is 600 pages and very complicated.

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Comments 5 comments

Patty Inglish, MS profile image

Patty Inglish, MS 4 years ago from North America

According to published rate tables, the cost for the lowest level of govt coverage health insurance (out of 4 levels) under the Affordable Care Act for a 60-year-old with a $55,000 annual salary is between $10,000 and $11,000 per year. This is about 20% of the annual salary and morally wrong to do to senior citizens or anyone.


perrya profile image

perrya 4 years ago Author

I agree. I think the euphoria of having a universal healthcare for all will wear off as the details come out as to how to pay for it and details. Like any governmental program, there will be large loopholes. While I think the concept is great, you can't have it without taxes and taxes disable business and with no business there are less jobs. In germany, 50% of a person's wage goes to the government to pay for programs like universal health!


Patty Inglish, MS profile image

Patty Inglish, MS 4 years ago from North America

And a friend that lived in Denmark said that 70% of annual income goes to govt programs there. That is too high a percentage, as is 50%.

I'll probably never have health insurance. My father refused to purchase it when I was a kid, most of the companies I've worked for did away with it, and I expect the Affordable Healthcare Act, Medicare, and Social Security to all pass away in bankruptcy. Since some central Ohio hospitals and many doctors are turning away senior citizens already, I'd better move when I get to a certain age.

Thanks for the Hub, by the way.


mjboomer profile image

mjboomer 4 years ago from Oregon

The whole insurance debate is interesting, even with reasonable insurance medical care is expensive and services are limited. My provider says the will pay for preventative procedures like colonoscopies, but after the surgery we find a bill for $1000.00.

Universal health care would be nice, however paying for it is the big question.


perrya profile image

perrya 4 years ago Author

Exactly.

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