The Adventures of Taxicus Spendicus Chapter II
When we last left our Masters of Disaster; that dynamic duo Taxicus Spendicus and his trusty Igor, Oil Can Harry (Reid) I had enumerated 5 of the 21 disasterous taxes they had managed to level upon an unsuspecting We the People; well not entirely most are associated with that most unpopular piece of legislation they rammed down our throat through the reconciliation process as well as several outright bribes Obamacare. I will now reveal to you some of the remaining 16 of the total 21 taxes they have imposed through subterfuge and obfuscation!
Are you aware of the Obamacare Hike in Medicare Payroll Tax? Here’s how this little diddy works; currently small business owners pay 2.9% in Medicare Payroll Taxes for themselves and all employees; well under that Obamanation known as Obamacare this goes up to 3.8% for the small business owners who make over $250,000. That’s a 31% increase; and this Regime purports to be for small business; yeah they’re for eliminating small business!
Continuing in the vein of Obamacare and its disasterous effect upon We the People; are you aware of Taxicus Spendicus and Oil Can Harry’s Medicine Cabinet Tax? You’re gonna love this one. Under this provision of Obamacare (remember we have to pass this bill in order to find out what’s in it), Americans are no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
But wait there’s more, there’s also the Obamacare HSA Withdrawal Tax Hike! This imposes a tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
Since most of the tax increases are associated with Obamacare here’s the Flexible Spending Account Cap – aka“Special Needs Kids Tax” This tax like most associated with this Obamanation takes effect Jan. 2013). What’s it all about; well it imposes cap on FSAs of $2500 (currently unlimited) which is indexed to inflation after 2013. There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at some such schools can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.
Here’s one that further exacerbates Obama’s war on business; Obamacare’s Tax on Medical Device Manufacturers! The Medical device manufacturers employ 360,000 but once this tax takes effect Jan. 2013, they will be forced to pay an additional 2.3% excise tax on all items they retail; wonder how many of those 360,000 will lose their jobs once this little beauty goes into effect! Just one more example of how Old Taxicus is out to punish business!
Remember Taxicus saying over and over and over and over ad infinitum; I will not raise taxes on anyone making less than $250,000. Well folks take a lookie here as Grandpappy Amos would say. Under Obamacare Taxicus raises the Medical Itemized Deduction from 7.5% to 10% of AGI which of course takes effect January 2013. Currently, those facing high medical expenses are allowed a deduction for those expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI. Do the math folks; Obama’s folks that make $30,000 could previously deduct all medical expenses above $2,250, now they will have to reach $3,000 before any deductions are allowed. But then again aren’t promises made to be broken; in Obama’s world they are right?
Whew, I’m fed up again so I gotta get away from this. I’ll report on the Adventures of Taxicus Spendicus and his trusty sidekick Oil Can Harry soon but for now I gotta go!