- Health Care, Drugs & Insurance
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.