You can’t judge a book by its’ cover and you can’t judge a law by its’ title. Do you know what is coming in 2013 and why?
December 31, will not only be New Year’s Eve it will be the “Eve of Change”. Four years ago at this time the American voter was promised change and it is coming in a big way in 2013. We now have a form of universal health care but what do we know about it?
You can be sure the cost of medical care in some areas will go up, for example medical device manufactures will begin to pay a 2.3% tax on gross sales even if the company is not profitable. No doubt this will drive up the cost for wheelchairs, prosthetics and even pacemakers.
Here’s another tax increase in 2013 that hurts the taxpayers that already have hardship and pain in their lives due to high medical expenses. Currently, under the tax code taxpayers are allowed a deduction for medical expenses that exceed 7.5% of their adjusted gross income. That threshold will be raised to 10% next year thereby increasing taxes on those with high medical bills.
Why you may ask, are we as a nation increasing taxes on those that need medical care? Why are we looking to those friends and neighbors most in need of compassion and care to pay higher taxes? What about the voices we hear in our political campaigns that say we need fairness? How did this happen?
Well folks, it is about needed change in America. These new taxes are all in place due to The Patient Protection and Affordable Care Act. Yes, this is part of patient protection but it raises the affordable care cost. Probably, a cost increase for the sick was not what you expected when you read the title, not when it includes “affordable care” as part of a defining title for a tax increase on the sick.
Oh you say you are not familiar with this legislation well neither were the people that voted for it. Nope, this was the legislation that the Speaker of the House Representatives, Democrat, Nancy Pelosi commented on when she said, “We have to pass the bill so that we can find out what is in it”. Then in the dark of night without reading it your Congressman Joe Courtney joined other members of Congress and voted for it without reading it first.
These tax increases impact all taxpayers not just high income taxpayers; these are just of couple of new taxes you will see. Hidden taxes in healthcare are like the gross receipts tax on gasoline they are passed on to consumers and taxpayer hidden in the cost of the product. Then we hear from the same politicians how it is the corporations that are taking advantage of the people and must somehow be restricted and punished for their perceived evil acts.
It seems to me the greater evil is selling the American people a universal health plan as affordable patient protection and then financing the plan by asking those most in need of care to pay for it with hidden tax increases. Honesty would have been a far better way to approach the problem but then those same politicians would have had to stand tall, look the American voter straight in the eye and tell the truth.
In this case we got what we voted for, dishonest politicians willing to punish the weak and sick during their illness and we have a President and Congressman that are proud to say they did it. They see no reason to alter or improve the plan but the President just the other night said he now likes the idea it is called “Obamacare”.
I hope for his sake the President’s shoulder doesn’t come out of joint when he is patting himself on the back, but then again he has no worry he is exempt from the plan and you and I will pay his bill. To those that are sick, the only advice is to pay as much as you can this year because next year you will lose some of your deduction.
Oh, one more thing, please remember to vote in November then visit your tax advisor for 2013 planning. Taxes are changing and you need to know.