JCT: Healthcare law to sock middle class with a $3.9 billion tax increase in 2019

JCT: Healthcare law to sock middle class with a $3.9 billion tax increase in 2019

April 14th, 2010

By Jay Heflin, The Hill

 There goes that campaign pledge

Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — due to healthcare reform, according to the Joint Committee on Taxation, Congress’s official scorekeeper.

The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.

Taxpayers can currently deduct medical expenses in excess of 7.5 percent of their adjusted gross income. Starting in 2013, most taxpayers will only be able to deduct expenses greater than 10 percent of AGI. Older taxpayers are hit by this threshold increase in 2017.

Once the law is fully implemented in 2019, the JCT estimates the deduction limitation will affect 14.8 million taxpayers — 14.7 million of them will earn less than $200,000 a year. These taxpayers are single and joint filers, as well as heads of households.

“Loss of this deduction will mean higher taxes for 14.7 million individuals and families making under $200,000 a year in 2019,” Sen. Chuck Grassley (R-Iowa) told The Hill. “The new subsidy for health insurance would not be available to offset this tax increase for most of these households.”

Read More:

A $400 million ‘modest investment’

A $400 million ‘modest investment’

Peter Wilson

Michelle Obama plans to spend $400 million dollars a year on her Let’s Move initiative’s  “ambitious goal” of eliminating “food deserts”  in the U.S. — making sure every low-income person in the country has the option of purchasing healthy food at a grocery story less than one mile from home.  (See yesterday’s article on the subject.)  Whenever you hear the phrase “ambitious goal” it’s not a surprise that the budget estimate is only seed money.  After I posted the Food Desert article, an earlier quote from the First Lady turned up on a website called Ecorazzi:

With a modest initial investment of about $400 million a year, we’re going to use that money to leverage hundreds of millions of more from private and nonprofit sectors to bring grocery stores and other food retailers to under-served communities all across this country.
This sentence uses the English language in interesting ways:
Modest”: in order to consider $400 million “modest,” one has to be thoroughly corrupted by the trillions of dollars flowing through the White House. 
“Initial” implies that this is only the beginning. 
“Investment”  = the Obama Administration’s euphemism for wasteful government spending.
“We’re going to use that money to…” = We’re going to take that money from you and..
                                                                                                                                        
“Leverage” = apply the coercive power of the federal government.
Ecorazzi’s conclusion?  “Sounds like a good investment to us!”