Everyone, Even the Middle Class, Will Pay for ObamaCare

October 22, 2012

The nonpartisan Congressional Budget Office (CBO) recently published an updated cost of ObamaCare over the next ten years. The cost estimate is now $1.76 trillion, up from the original $940 billion when the law was passed in 2010. Funding for this $1.76 trillion comes from two sources - a $716 billion cut to Medicare and $1.05 trillion in new taxes.

These new taxes will be placed on health insurance premiums, health insurance companies, drug manufactures and medical device companies. These taxes will then be passed on to consumers. In other words, anyone who uses health care will have to pay these taxes, including middle class families. Also, anyone who does not buy health insurance will pay a tax.

In addition, ObamaCare adds a Medicare tax increase of 0.9 percent and a new 3.8 percent tax on unearned income for the "rich." The rich are defined as any individual who earns more than $200,000 a year or a couple who earns more than $250,000 a year. These numbers are not tagged to inflation or to an increase in the cost of living. Consequently, assuming a 4 percent wage increase per year, $200,000 in 2030 would equate to $100,000 in today's dollars.

The $1.76 trillion will be dispersed to two groups - 20 million new people added to Medicaid and at least 10 million people who buy taxpayer-subsidised health insurance in the state exchanges.

In other words, at the end of the day, ObamaCare is a huge income redistribution plan. The government will take money from the rich and the middle class and redistribute that money as bureaucrats determine.