One thing that is sure to alarm the voter is the word, “taxes!” Americans just hate taxes. Europeans do not necessarily enjoy paying taxes but have come to understand that they reap many benefits from tax money. The American adolescent mind, in comparison, wants its cash in hand to spend it the way they see fit. I suppose that is typical of those lacking wisdom. Before my wisdom solidified, I cried too about those taxes that were deducted from my paycheck at age 16. I had better places to spend my money than on taxes!
The GOP has always had the ‘tax card’ in its pocket and they know how to play the game very well. Right now, while licking their wounds from the health care loss, they are waxing and pressing the ‘tax card’. Although they played it [along with many others] during the so-called debate, it didn’t seem to take with the citizens. Now that all of the noise has subsided, they are shining it up for the fall elections.
‘Tax and spend liberals!’ How many times will we hear that one? The GOP will throw that net over every Democratic candidate this November. Will the freshman House Democrat cower under that net or stand up with the facts? And, what are the facts about this health care bill and taxes?
First, John Boehner’s tanning booth visits will be taxed which may be why he was so angry on the evening of the vote. Fact: 10 percent excise tax on indoor tanning services. How will THAT one play to the voters in November?
Second, beginning in 2018, insurance companies will pay a 40 percent excise tax on so-called “Cadillac” high-end insurance plans worth over $27,500 for families ($10,200 for individuals). Dental and vision plans are exempt and will not be counted in the total cost of a family’s plan. How will that play out for the elections this fall? Will the Democratic candidate be shackled with that whopper? How many families have a ‘Cadillac’ plan that costs $27,501? And what does 2018 have to do with 2010?
Third. Medicare Payroll tax on investment income — Starting in 2012, the Medicare Payroll Tax will be expanded to include unearned income. That will be a 3.8 percent tax on investment income for families making more than $250,000 per year ($200,000 for individuals). First, it starts in 2012 so the few who fall into this category will not see any increase in taxes before then. Additionally, it will effect only families making a quarter-million per year. That excludes the majority of our citizens. Finally, it is only a 3.8% tax.
Let’s consider that ‘egregious’ tax increase! First of all, if a person is making a quarter-million a year, why do they need Medicare? Medicare was intended to help our those with modest incomes retire without worry of medical bankruptcy. Nonetheless, if our well-to-do $250k retiree made $52,000 in investments after retirement- which is in fact the median income for families in 2009- then he would pay 3.8% tax on that $52k. That’s a whopping $1976. Pocket change for those folks.
How will the GOP candidate spin these taxes? Surely he/she could not use my data because the average citizen doesn’t make $250k and doesn’t earn $52k in investments. Rather the general theme of ‘raising your taxes’ will be heard all across the land. Dumbed-down citizens will think it will be their taxes, for sure. That’s what the slick GOP candidates will hope for.
So a tanning tax, Cadillac plan tax, and the $250K retirees can gripe- and of course they will. The rest of us schleps can just enjoy the benefits of knowing that the insurance companies, at last, have been reigned-in.