BAMBOOZLED: Obamacare And The Not So Deductable Deductible

obamacare-Barack_Obama_reacts_to_the_passing_of_Healthcare_bill-sWhile the broken technology infrastructure of the Affordable Care Act continues to occupy center stage, the broader economic damage of Obamacare is becoming more visible. Since Obamacare-compliant insurance plans cover more, they cost more. Insurance plans can recover those costs in one of two ways- higher premiums or higher patient outlays (deductibles and co-pays).

Courtesy of the Supreme Court of Chief Justice John Roberts, the law stands as an exercise of the taxing authority of Congress. And Congress gave its muscles a robust workout back in 2010. Obamacare rests on a web of taxes. The individual mandate is the most notorious, but it has plenty of company.

One of the craftiest stealth taxes affects the millions of taxpayers who itemize their deductions. Previously, taxpayers could deduct medical expenses to the extent that they exceeded 7.5% of Adjusted Gross Income. For a couple with AGI of $40,000, for example, they could deduct expenses in excess of 7.5% or $3,000 in 2012. But for tax year 2013 and beyond, the threshold rises to 10% for taxpayers under age 65. Assuming no change in income, their deduction would only kick in once out-of-pocket expenses exceeded $4,000. Senior citizens become subject to…

This article continues at theminorityreportblog.com

 

Join the conversation!

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.