On Friday, Forbes Magazine posted an article about the Affordable Care Act’s (ACA) health insurance tax. I hate to admit it, but this is news to me. I didn’t realize that there was an entire new group of taxes in Obamacare that will impact the middle class and the elderly.
The article reports:
…the tax increases that remain on the books will cost taxpayers more than $675 billion over the next ten years. Chief among these will be the sales tax on the purchase of health insurance, totaling $101.7 billion, and making it larger than all the other industry-specific taxes combined.
The article concludes:
In fact, Medicare Advantage beneficiaries will see costs rise from $16 to $20 per member per month in 2014 – increasing to between $32 and $42 by 2023. The costs for Medicare Advantage coverage over the next ten years is expected to reach $3,590. Individuals on Medicaid managed care will see increase costs on an average of $1,530 per enrollee between 2014 and 2023.
The Congressional Budget Office (CBO) supports Ignagni and Goodman’s warnings, stating that the health insurance sales tax will be “largely passed through to consumers in the form of higher premiums.” Unfortunately, as Goodman predicts, “this is only one example of many middle income taxes buried in ObamaCare.” The time to repeal and replace is narrowing, with just months now separating us from another massive tax hike that Americans cannot afford.
This is one more reason to repeal Obamacare. I suspect there may be a lot of Democrats at this point complaining that this is not what they signed up for. If it is what they signed up for, they should be voted out of office.