Promise not to raise taxes on the middle class broken.
As if there was any doubt that this wasn’t going to happen. But I want to first bring an issue that is absolutely Orwellian. One of the great cons of Obama is that he redefined what a “tax cut” is. Notice the sleight of hand:
And if you still can’t afford the insurance in this new marketplace, even though it’s going to be cheaper than what you can get on your own, then we’re going to offer you tax credits to help you afford it -– tax credits that add up to the largest middle-class tax cut for health care in American history.
Now, when we used to talk about tax cuts we mean a cut in marginal tax rates (the rate each dollar above a certain amount is taxed). However, Obama terms a tax credit – A tax expenditure given to a taxpayer to help reduce the amount of taxes paid and, in some instances, giving the taxpayer a refund – a “tax cut”. However, cutting taxes and a credit to taxes are two completely different things. Tax cuts, contrary to the belief of liberals, do not cost the government money, but in order to maximize the tax cut, the government should correspondingly cut expenditures (something Bush did not do). Tax credits, as mentioned above, are “expenditures” that must be paid for with general revenues. Which brings us to this report from The Hill:
Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — because of healthcare reform, according to the Joint Committee on Taxation, Congress’ official scorekeeper for legislation.
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 allowed to deducted 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.”
The sad thing is that Obama told a complete lie to the face of the American people and the American people sincerely believe that their taxes are not going to go up. However, Obama is selling the rope with which the rubes will hang themselves: if a tax “credit” is an item that must be paid for from general revenues, how is it that your taxes will be “cut” when the credit must be paid for?
If you wonder why the Tax Code is cumbersome and not easy to wade through, it is because pols make promises using the Tax Code, but if Americans had the temerity to read the thing, they’d notice that a lot of what was promised to them is indeed not available to a great many of them.
(h/t NRO for the article links)