Remember when President Obama promised not to raise taxes on the middle class? He said over and over that he would not raise taxes on anyone making less than $200,000/year or a couple making less than $250,000/year. Then it was decided by the Supreme Court that in order for Obama’s healthcare bill to even be Constitutional, the mandate would have to be considered a tax. The IRS is responsible for collecting the tax on not buying health insurance, to further prove that this mandate is indeed a tax hike–which affects mostly the middle class.
While the original estimate for the number of people who would pay the penalty for not buying health insurance was 4 million, this has recently been adjusted to 6 million in 2016 when the bill goes into effect completely. 80% of those 6 million people are either personally making less than $56,000/year, or as a couple bringing in less than $116,000/year. So Obama raised taxes on 4,800,000 middle class Americans who make under $200,000/year. Who would have thought Obama would break his promise?
Each of these families will be forced to pay a $1,200 tax, because they did not buy health insurance. That means at least an additional 2.1% of an individual’s income going to the government (on top of taxes already paid). According to an Associated Press Article, paying this penalty-tax would be the only true option for many of these middle class individuals and families, “with employer-provided family coverage averaging nearly $15,800 a year for a family and $4,300 for a single plan”, which has led some to suggest that the tax be higher.
Another “unexpected” shock coming out of Obamacare is the cost to the private sector of complying with regulations. These are not taxes, but rather money that must be spent by private companies to follow the regulations put forth by the government. Complying with Health and Human Services regulations has already risen to $184 Billion annually, and regulators are still drafting more rules. Including the regulatory costs of Obamacare, the regulatory burden on the private sector comes to a whopping $1.8 Trillion every year. The GDP (Gross Domestic Product) is about $15 Trillion annually, meaning that about 12% of the value of the nations economy is wasted every year. This is $1.8 Trillion that cannot go into hiring new employees, investing in new technology, and funding innovation. (Original Article Here).
It should be quite obvious by this point that the current administration is not at all interested in improving the economy, but is rather stuck to an ideological goal of consolidating power with the federal government.