Armstrong Economics Blog/The Hunt for Taxes
Re-Posted May 5, 2017 by Martin Armstrong
The American Health Care Act (HR 1628) finally passed by the House yesterday reducing taxes on the American people by over $1 trillion. The bill abolishes the most abusive taxes taxes imposed by Obama and the Democrat party back in 2010 known as Obamacare. The Democrats helped the insurance companies and burdened the youth trying to force them to pay for insurance they did not need to get insurance companies to cover people they would not.
Obama as a presidential candidate back in 2008, had promised repeatedly that he would NOT raise any tax on any American earning less than $250,000 per year. That was an outright lie. As always, they claim they will only tax the rich, but it never end up that way.
In KING v. BURWELL, 576 US – (2015), the Supreme Court upheld Obamacare claiming it was a tax. There was no constitutional power for Congress to punish someone who did not buy health insurance. The only way to uphold such a power was under the taxing powers. Justice Scalia wrote in his dessenting opinion:
The Act that Congresspassed provides that every individual “shall” maintain insurance or else pay a “penalty.” 26 U. S. C. §5000A. This Court, however, saw that the Commerce Clause does not authorize a federal mandate to buy health insurance. So it rewrote the mandate-cum-penalty as a tax.
With the repeal of Obamacare, tens of millions of middle income Americans will get tax relief from Obamacare’s long list of tax hikes that have oppressed so many. The taxes that will be abolished are:
- The Obamacare Individual Mandate Tax which hits 8 million Americans each year.
- The Obamacare Employer Mandate Tax. Together with repeal of the Individual Mandate Tax repeal this is a $270 billion tax cut.
- Obamacare’s HSA withdrawal tax. This is a $100 million tax cut.
- Obamacare’s 10% excise tax on small businesses with indoor tanning services. This is a $600 million tax cut.
- The Obamacare health insurance tax. This is a $145 billion tax cut.
- The Obamacare 3.8% surtax on investment income. This is a $172 billion tax cut.
- The Obamacare medical device tax. This is a $20 billion tax cut.
- The Obamacare tax on prescription medicine. This is a $28 billion tax cut.
- Obamacare’s Medicine Cabinet Tax which hits 20 million Americans with Health Savings Accounts and 30 million Americans with Flexible Spending Accounts. This is a $6 billion tax cut.
- Obamacare’s Flexible Spending Account tax on 30 million Americans. This is a $20 billion tax cut.
- Obamacare’s Chronic Care Tax on 10 million Americans with high out of pocket medical expenses. This is a $126 billion tax cut.
- The Obamacare tax on retiree prescription drug coverage. This is a $2 billion tax cu