Ready For Your New Tax?
January 1, 2013 will be the beginning of lots of new things. A new year and new taxes amongst other things. One new tax, according to the Congressional Budget Office (CBO) is the penalty-tax
provision of The Patient Protection and Affordable Care Act (PPACA) that forces individuals to buy insurance or pay the penalty.
Our memories are short apparently. We need only to look back to 2008 and Candidate Obama, who pledged;
“I can make a firm pledge. Under my plan no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”
Moving forward to today we all need to prepare ourselves for a new tax. The CBO analysis found that 80 percent of those facing the penalty would be making up to or less than five times the federal poverty level. That bureaucratic speak works out to $55,850 or less for an individual and $115,250 or less for a family of four.
Let’s also not forget the Obama promise that the PPACA plan would result in a savings for families on their health care premiums of $2500. The CBO had also brought this inconsistency to light, in their report from July of 2102. In that report entitled, “Estimates for the Insurance Coverage Provisions of the Affordable Care Act Updated for the Recent Supreme Court Decision,” they concluded that PPACA would increase health care premium cost by $2400.
In July of 2012, Obama urged holding down middle-class tax rates by calling on Congress to pass a one-year extension of the Bush tax cuts for people earning less than $250,000 a year. The House of Representatives has already gone on the record passing a one year extension of the Bush tax cuts.