The Affordable Care Act may come with a host of new benefits and protections, but it also comes with a slew of new taxes, fees and fines to pay for them. But while many of the law's benefits have been in effect for a year or more, these new Obamacare taxes only became effective as of Jan. 1.
- New Obamacare Taxes Will Slam the Middle Class in 2014
- More Obamacare Taxes Will Hit Your Wallet January 1
- Warning: Hidden Obamacare Taxes Will Cost You More Than You Think
- The Real Impact of Obamacare Taxes
Obamacare's overarching goal of providing coverage to millions of uninsured Americans is a noble one, but it's going to cost money - a lot of money. And that means billions of dollars in new taxes will need to be raised. That's probably why the new healthcare law has no less than 47 tax provisions.
You see, all those great benefits included in the Affordable Care Act don't come cheap, which is why the new healthcare law includes a barrage of new "Obamacare taxes."
And don't believe for a second the new Obamacare taxes will hit only the "rich" or those making over $250,000.
Some do, but you'd be surprised at how many of these new taxes also hit the middle class.
Worse still, many of these new measures are disguised as taxes on businesses. The bulk of these "stealth taxes" will be transferred to consumers via higher prices for drugs and health insurance.
"The legislation imposes more than $569 billion in new or increased taxes, the vast majority of which will fall on businesses," writes Michael Tanner in a 2011 Cato Institute report on the impact of the healthcare law. "Many of those taxes, especially those on hospitals, insurers, and medical device manufacturers, will ultimately be passed on through higher health costs."
Even still, few realize just how many new taxes lurk within the law's 2,500-plus pages because most of the talk about the Affordable Care Act focused on the constitutionality of the individual mandate.
Of course, according to Supreme Court Chief Justice John Roberts, even that turned out to be a tax.
Obamacare Taxes You'll Pay DirectlyIn addition to the hidden Obamacare taxes, which we'll get to shortly, the law reaches directly into your pocket in several ways:
The Affordable Care Act is primarily aimed at decreasing the number of uninsured Americans and reducing the overall costs of health care. Those who think the law won't change much about their healthcare or finances don't realize they'll likely be paying for it.
That's why Republicans are focused on striking down Obamacare should they nab a presidential victory in Election 2012. They claim that the taxes involved to pay for Obamacare will crush the middle class and most U.S. taxpayers, as well as trigger job losses in affected industries.
Republicans also harp on the fact that President Obama said he would not raise taxes.
"This bill was built with smoke and mirrors to hide the impact of the trillions of dollars of new entitlement spending," House Budget Committee Chairman Paul Ryan, R-WI, said in a statement last Tuesday.
Here's a glimpse at what those Obamacare taxes will do to the country.