Custom Search

Tuesday, April 13, 2010

Congress's Joint Committee on Taxation: Middle Class Nailed With '$3.9 billion tax increase' Due To Obamacare

As more details emerge about the new Obamacxare aka Healthcare law, public support for working to repeal the law or at least massive portions of it has increased since it's passage and now blockbuster breaking news from Congress's official scorekeeper, the Joint Committee on Taxation has just been reported, via The Hill, who headlines with "JCT: Healthcare law to sock middle class with a $3.9 billion tax increase in 2019."

Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — due to healthcare reform, according to the Joint Committee on Taxation, Congress's official scorekeeper.

The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.

Taxpayers can currently deduct medical expenses in excess of 7.5 percent of their adjusted gross income. Starting in 2013, most taxpayers will only be able to deduct expenses greater than 10 percent of AGI. Older taxpayers are hit by this threshold increase in 2017.

Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year. These taxpayers are single and joint filers, as well as heads of households.

So much for Obama's 2008 promise of reducing taxes for 95 percent of Americans.

There is something he reduced though, American's income levels, which fell 3.2 percent during Obama's term.

Hows that hope and change thing working for y'all?