Thursday, December 13, 2012

Prose and Cons of Obamacare’s Higher Taxes

All that is not prose is verse; and all that is not verse is prose.

Moliere (1622-1673), (1670) Le Bourgepois, Gentilhomme

December 13, 2012

This is a prose poem

It is neither verse nor rhyme

But a little of both combined

It is about the pros and cons

of Obamacare’s coming tax wave

about which I shall now rave

The pro is high taxes on the rich to make voters feel good

After all, Obama can then for them act  like Robin Hood

The polls say ObamaHood wins elections

By promising to take from the rich

And to give  to the middle class niche

Taxing the rich is politically rewarding

The con is absolutely historical

And unequivoally categorical

This noble and compassionate "take the rich" strategy

Paradoxically decreases government revenues

Every benevolent tax rise

Turns into a curse in disguise

Take the $2.6 trillion Obamacare cost over the decade

This will on the federal treasury be another money raid

It will feel good for the present adult generation

But condemns our children to debt damnation

Or consider the 3.8% Obamacare tax

On everyone will fall this income ax

Or the 0.9% payroll levy

Making take-home pay for all less heavy

Or reducing the HSA deductible from $5000 to $2500

That will cost 5.7 million current HSA holders

Who then must reach deep and pay out-of-pocket

Rather than set aside money for their retirement docket

Or the 2.3% tax on profits of medical devices

Now companies whose devices are in demand

must raise prices, or decline not to invest, hire, or expand

Or the individual mandate

It will come as a shock  to 6 million young and healthy

Who must now pay the penalty.

for not having  a health plan,

pay thousands in premiums for something they don't need

Or take a chance and try to evade the IRS

Who may have to hire  16,000  new agents

 to track down and bring the young invincibles to bay

Or how about those other monumental tax hikes

43.4% for dividends, 23.8% for capital gains, and 55% for estates

These hikes supposedly affect only those who can afford it

But it  makes them likely to not hire or invest and more likely to hoard it

And what about that $2000 fine on companies with 50 or more full-time workers if they do not buy expensive government approved coverage for every employee

How will they respond to the employer mandate

How will low-margin enterprises in the retail and fast-food and restaurant businesses stay afloat

Their options are to raise prices, reduce their full-time employer to part-time work, thereby forcing low-wage workers to pay for their own insurance  or go on the federal dole.

For every good health reform  intention lurks an unforeseen adverse consequence.

Tweet:  Taken as a whole, the new wave of Obamacare taxes will affect every American, for better or worse, for richer or poorer.

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