Showing posts with label capping tax deductions. Show all posts
Showing posts with label capping tax deductions. Show all posts

Wednesday, September 2, 2009

Obama's 'Specific' Healthcare Speech: Will He Disavow Pledge-Breaking Tax Hikes in House Dem Health Bill?

/PRNewswire/ -- There are four tax hikes in the House Democrat healthcare bill (H.R. 3200) that violate President Obama's promise not to raise "any form" of taxes on families making less than $250,000 per year. The White House has told reporters that Obama is going to get specific on healthcare policy in a speech next week, which begs the question:

If Obama is serious about keeping his central campaign promise, will he disavow the four pledge-breaking provisions in the House Democrat healthcare bill? They are as follows:

Restrictions on tax-deductible purchases of over-the-counter medicines with health spending accounts like FSAs and HSAs. This isn't in the original H.R. 3200, but it did make it into Charlie Rangel's "Chairman's Mark." The description can be found at www.jct.gov, and it's document JCX-32-09. The 8 million Americans who have a health savings account (HSA) and 30 million Americans who have a health flexible spending account (FSA) will no longer be able to buy over-the-counter medicines (aspirin, etc.) on a pre-tax basis. Contrary to the Obama rhetoric, this would change the plan people currently have, and raises their taxes in the process. This affects anyone with these types of accounts, not just those making more than $250,000 per year.

Tax on Individuals Not Enrolled in Health Insurance (Page 167): Those who don't enroll in a health insurance plan will have to pay a new tax equal to 2.5% of income. If they earn $40,000 a year and don't have health insurance, they will have to pay tax of $1000. Notice how this tax affects all individuals, not just those making more than $250,000 per year.

Tax on Businesses Not Offering Health Insurance (Page 183): If a business has a payroll of at least $500,000 and does not offer health insurance, it will be compelled to pay a new payroll tax of 8 percent. It doesn't matter if the business is profitable or running a loss. Small businesses pay taxes on their owners' 1040s. This will affect thousands of small businesses with profits of less than $250,000 per year.

IRS Can Disallow Perfectly Legal Tax Deductions They Just Don't Like (Page 207): If a taxpayer (including one making less than $250,000 per year) uses a perfectly-legal tax deduction the IRS doesn't like, the IRS will be empowered to simply disallow it. The only reason the IRS has to give is that the tax break lacks "economic substance" -- that is, the taxpayer is not taking the deduction for "substantial" or "business" reasons. For those wanting to engage in a legal activity to cut their tax bill, the IRS wins no matter what.

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Thursday, March 5, 2009

RNC: Tax and Spend Fever

/PRNewswire-USNewswire/ -- The following was released today by the Republican National Committee:

Today, President Obama Will Host A Health Care Summit:

Today, President Obama Will Host A Summit On Health Care Issues. "On Thursday, Mr. Obama will host a summit on health-care issues where a variety of stakeholders will come together with members of Congress." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

EVEN MORE SPENDING? HIGHER TAXES?

President Obama's Health Care Plan Could Cost More Than $1 Trillion:


Estimates Place The Cost Of President Obama's Health Care Plan At Over $1 Trillion Over The Next Decade. "Estimates put the full cost of Mr. Obama's health plan at more than $1 trillion over 10 years." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

The President Has Been Vague About Funding His Health Care Plan:

President Obama Has Been Vague On How His Health Care Plan Would Be Financed. "Mr. Obama has been vague about how the country's future health-care system should be structured, but he was detailed last week about how to pay for it. He proposed raising $634 billion over 10 years through tax increases on the wealthy and cuts to existing government health-care spending." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

In The Past, Obama Proposed Funding Health Care Reforms By Repealing The Bush Tax Cuts:

Originally, President Obama Said He Would Finance His Health Care Plans By Rolling Back The Bush Tax Cuts. "On his Presidential Transition website, President Obama said he would 'pay for his $50 - $65 billion health care reform effort by rolling back the Bush tax cuts for Americans earning more than $250,000 per year and retaining the estate tax at its 2009 level.'" (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)

But Instead, Democrats Have Already Announced Plans For Billions In New Taxes To Fund Health Care:

President Obama Still Plans On Ending The Bush Tax Cuts; But Instead Of Using Them To Fund Health Care, He Proposed A New Tax. "But as we learned yesterday afternoon, though the President is certainly planning on raising taxes on the wealthiest Americans by allowing the Bush tax cuts to expire next year -- making the top rate jump from 35% to 39.6% -- the President plans on partially funding the Health Care Reserve fund by raising another, new tax on those families making $250,000 a year, specifically from reducing the itemized deduction rate for families with incomes over $250,000, limiting it to 28 percent." (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)

President Obama Proposed A $634 Billion Reserve Fund For Health Care, That Experts Believe Will Cost At Least $1 Trillion. "President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion. The 'reserve fund' in the budget proposal being released today is Obama's attempt to demonstrate how the country could extend health insurance to millions more Americans and at the same time begin to control escalating medical bills that threaten the solvency of families, businesses and the government." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)

Democrats Plan To Pay For The Reserve Fund By Capping Tax Deductions, Amounting In A Tax Increase Of More Than $300 Billion. "About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a 'shared-responsibility issue,' would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)

Does The Obama Administration Plan On Using An Employer Tax Exclusion To Help Fund Health Care?

There Is Speculation That Democrats Will Propose An Employer Tax Exclusion To Help Fund The Health Care Proposals. "The administration, as John Cohn says, means to leave the rest of the financing question to Congress. But according to both members of Congress and the administration, that ambiguity obscures a specific solution under examination: The employer tax exclusion." (Ezra Klein, "What Obama's Budget Does -- And Doesn't - Say," The American Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)

-- This Is The Same Idea That The Obama Campaign "Brutalized" McCain For
Suggesting. "This is a particularly tricky policy for the Obama
administration to propose because they brutalized John McCain for
suggesting much the same thing. McCain, they said, was planning to tax
employer health care benefits for the first time in history." (Ezra
Klein, "What Obama's Budget Does -- And Doesn't - Say," The American
Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)

Even Other Democrats Are Beginning To Question The Amount Of Debt That President Obama's Health Care Plans Would Bring:

Rep. Jim Marshall (D-GA) Suggested Avoiding More Debt Was More Important Right Now Than Providing Universal Health Care. "One Blue Dog Democrat in the House made clear today that he is unlikely to support President Obama's health care reform plans unless it is revenue neutral and does not add long-term debt to the nation's balance sheet. In an appearance on ABC News Now's 'Politics Live,' Rep. Jim Marshall, D-Ga. ... suggested that avoiding additional debt is a greater priority for the country's economic health than providing universal health care coverage for all Americans." (David Chalian, "Blue Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The Note" Blog, www.abcnews.com, 3/2/09)

-- Rep. Marshall: "Increasing Spending Without Coming Up With Revenue
That Matches That Spending Or Cutting Spending Some Place Else Is Just
Not The Direction That We Need To Head In." Marshall: "Frankly all of
us would like to see more Americans have access to health care and
there will be a lot of different arguments concerning the appropriate
plan, but I think there's a larger issue on the table now and I think
the President has a real opportunity to show some leadership with
regard to that issue, and it's the long-term fact that our budget just
isn't sustainable ... Increasing spending without coming up with
revenue that matches that spending or cutting spending some place else
is just not the direction that we need to head in. We've been doing
that too long now. We're addicted to debt, w e ran up debt
unbelievably during the Bush administration years, and I hope the
administration will show some real leadership and head this country
towards a sustainable course in the long run." (David Chalian, "Blue
Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The
Note" Blog, www.abcnews.com, 3/2/09)

Democrats Have Already Passed And Proposed Trillions Since President Obama Was Sworn In:

President Obama Proposed Spending Between $3.5 And $4 Trillion In His FY2010 Budget. "Obama's budget overview will call for between $3.5 trillion and $4 trillion in spending in fiscal year 2010 and creates space for up to $750 billion in additional bank bailout funds this year - money that hasn't been requested and the administration hopes will not be necessary to stabilize the still-reeling financial system." (Major Garrett, "Obama's Budget Projects $1.75 Trillion Deficit," FoxNews.com, www.foxnews.com, 2/26/09)

Last Month, President Obama Signed The $787 Billion Economic Stimulus Package. "The $787 billion stimulus bill that President Barack Obama signed Tuesday was a warm-up act, an emergency provision aimed at stimulating a moribund economy." (David Lightman and Margaret Talev, "How Much Government Spending Is Ahead? Stay Tuned," The Miami Herald, 2/20/09)

Last Week, Democrats In The House Passed A $410 Billion Omnibus Spending Bill. "The U.S. House voted to boost spending on domestic programs by 8 percent, ease restrictions on travel to Cuba and kill a school voucher program in Washington, D.C., as part of a $410 billion spending bill." (Brian Faler, "House Approves $410 Billion 'Omnibus' Spending Bill," Bloomberg, 2/25/09)

President Obama Announced A $275 Billion Plan To Stave Off Foreclosures. "After a week dominated by programs that involve spending -- in addition to the stimulus package, the plan to stave off foreclosures could cost taxpayers as much as $275 billion -- Mr. Obama used his weekly radio and Internet address to chart the immediate road ahead." (Sheryl Gay Stolberg, "Obama Pledges To Seek Deficit Cuts," The New York Times, 2/21/09)

WILL A HEALTH CARE PROPOSAL INCLUDE CAMPAIGN PROMISES?

During The Campaign, Obama Proposed An Employer Mandate And Government-Organized Marketplace For Health Insurance:

Obama Proposed A "Government-Organized Marketplace" For Health Insurance. "During his presidential campaign, Mr. Obama proposed a system in which people could buy insurance through a government-organized marketplace, where private plans and a new government-run plan would compete." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

Obama Proposed Forcing Businesses To Cover Their Employees Or Pay Into A Fund. "During his campaign, Mr. Obama proposed that large businesses be required to offer coverage or pay into a fund, while small businesses that offer coverage would get a tax credit." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)

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Monday, March 2, 2009

RNC: Wrong Prescription

The following was released today by the Republican National Committee:

Today, President Obama Will Make A Formal Announcement That President Obama Will Nominate Gov. Kathleen Sebelius (D-KS) For HHS Secretary:

Today, President Obama Will Announce Sebelius As His Secretary Of Health And Human Services. "Kansas Gov. Kathleen Sebelius yesterday accepted President Obama's request to become his secretary of health and human services, stepping into a central role in the new administration's ambitious effort to overhaul the nation's health-care system. ... A formal announcement of her nomination is scheduled for tomorrow." (Michael A. Fletcher and Ceci Connolly, "Governor Of Kansas Tapped To Lead HHS," The Washington Post, 3/1/09)

Democrats Have Already Announced Plans For Billions In New Taxes To Fund Health Care:

Last Week, President Obama Proposed A $634 Billion Reserve Fund For Health Care, That Experts Believe Will Cost At Least $1 Trillion. "President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion. The 'reserve fund' in the budget proposal being released today is Obama's attempt to demonstrate how the country could extend health insurance to millions more Americans and at the same time begin to control escalating medical bills that threaten the solvency of families, businesses and the government." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)

Democrats Plan To Pay For The Reserve Fund By Capping Tax Deductions, Amounting In A Tax Increase Of More Than $300 Billion. "About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a 'shared-responsibility issue,' would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)

SEBELIUS HAS A HISTORY OF "TWISTING ARMS" TO RAISE TAXES

Kansas Has A High Tax Burden:


Kansas Ranks In The Bottom Half Of States For State Business Tax Climate. "Kansas ranks 31st in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states were as follows: Nebraska (42nd), Missouri (16th), Oklahoma (18th), and Colorado (13th)." (The Tax Foundation Website, www.taxfoundation.org, Accessed 3/1/09)

Kansas Has The 13th Highest Property Tax Burden. The American Legislative Exchange Council ranks Kansas 38th among states' property tax burdens, with 1st being the lowest, and 50th being the highest. (Arthur B. Laffer and Stephen Moore, American Legislative Exchange Council, "Rich States Poor States: ALEC-Laffer State Economic Competitiveness Index," www.alec.org, 2007, p.71)

Sebelius' Solution To High Taxes Is To Raise More Taxes:

Sebelius Has Called For Hiking The State Sales Tax 8%, The Income Tax By 5%, And Property Tax 10%. "The governor proposes to: Increase the state's sales tax rate from 5.3 to 5.5 percent on July 1, to 5.6 percent in 2005 and to 5.7 percent in 2006. Impose a 5 percent surcharge on personal income taxes, with no expiration date specified. Raise the state's 20-mill property tax levy for schools to 21 mills in 2005 and to 22 mills in 2007." (Chris Moon, "Governor's Plan Would Raise Three Kinds Of Taxes," Topeka [KS] Capital-Journal, 2/26/04)

-- Her Plan Would Have Raised Over $600 Million In New Taxes. "[G]ov.
Kathleen Sebelius, a Democrat, would raise income, sales and property
taxes and spend $663 million more on public schools over the next
three years." (Jim Sullinger and John L. Petterson, "It's GOP's Turn
At School Finance," The Kansas City Star, 3/13/04)

Already This Year, Sebelius Has Come Out In Favor Of A $0.50 Per Pack Cigarette Tax Increase, Saying She'd Be "Twisting Arms" To Help Pass It. "Gov. Kathleen Sebelius [advocated] proposals that include a 50-cent per pack increase in the state cigarette tax. 'I will be campaigning for this, urging people to do it, twisting arms to do it,' Sebelius said." (Scott Rothschild, "Sebelius, Barnett Join Forces On Tobacco Tax," Lawrence [KS] Journal-World & News, 1/10/08)

SEBELIUS VETOED EFFORTS TO STOP EXCESSIVE LITIGATION FROM HARMING BUSINESSES AND HEALTH CARE

Litigation Is A Growing Problem For Kansas Businesses:

A 2005 Poll Found That 72% Of Kansas Business Leaders Believe Frivolous Lawsuits Drive Up Business Costs. "A recent Kansas Chamber of Commerce poll of the state's business owners and executives indicated that 72% of business leaders strongly believe that frivolous lawsuits drives up their costs of doing business." (The Attorney General Of Kansas, "Attorney General Kline, Insurance Commissioner Praeger Work To Ensure No 'Medical Liability Crisis,'" Press Release, 3/4/05)

Since Sebelius Took Office, Kansas Has Dropped Six Places In The U.S. Chamber Of Commerce Institute For Legal Reforms State Ranks. Since 2002, Kansas has dropped from rank four to rank ten, or six places. (Kansas Chamber Of Commerce, "Kansas Chamber Legal Institute," www.kansaschamber.org, 8/9/04; U.S. Chamber Of Commerce Website, Institute For Legal Reform, www.instituteforlegalreform.com, Accessed 3/1/09)

Sebelius Vetoed Efforts To Reduced Medical Liability Insurance Costs In A State Which Is "Showing Problem Signs":

The American Medical Association States Kansas Is "Showing Problem Signs," Due To Rising Medical Liability Rates. (Sherman Joyce, "Election Should Lead To Strong Legal Reform," The Wichita [KS] Eagle, 11/16/04)

But In 2007, Sebelius Vetoed Legislation, Making It Easier To Sue Physicians In Consumer Protection Cases. "Gov. Kathleen Sebelius ... vetoed a bill that she said would have exempted health care providers, including doctors, from the Kansas Consumer Protection Act. ... The Kansas Medical Society issued a statement saying it was 'very disappointed' in Sebelius' veto. ... Without the bill, they said, more litigation will occur and that would lead to higher malpractice premiums for health care providers, which will be passed on to consumers." (Scott Rothschild, "Sebelius Vetoes Bill Sought By Doctors," The [Lawrence, KS] Journal-World, 4/21/07)

SEBELIUS SUPPORTS BIG LABOR AND TRIAL LAWYERS OVER KANSAS WORKERS AND BUSINESSES

Sebelius: In Pocket Of Trial Lawyers:

Sebelius Was Executive Director Of Kansas Trial Lawyers Association From 1978-1986. ("Gubernatorial Candidates On Tuesday's Primary Ballot," The Associated Press, 8/2/02)

Sebelius: "Perhaps My Objectivity Has Been Seriously Compromised By My Trial Lawyers Employment, But The Premise That People Are Too Eager To Use The Courts Seems Hollow To Me." (Kathleen Sebelius, "And From The Director," Journal Of Kansas Trial Lawyers Association, Volume V, #1, p. 2, 2/81)

Sebelius Has Received At Least $898,707 From Lawyers & Lobbyists. (The Institute For Money In Politics, www.followthemoney.org, Accessed 1/22/08)

In Her 2006 And 2002 Races For Governor, Lawyers And Lobbyists Were The Top Economic Sector Contributing To Her Campaign. (The Institute For Money In Politics, www.followthemoney.org, Accessed 1/22/08)

Sebelius: In Pocket Of Big Labor:

Sebelius Has Received At Least $564,495 From Big Labor. (The Institute For Money In Politics, www.followthemoney.org, Accessed 1/22/08)

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