Obamacare is NOT the largest tax increase ever

Now. Yo-Yo -- good part of -- down. That's a dumb thing to our city -- Talk drivers so 680 WR -- rock -- by network. Capital funding corporation your future financed. We're gonna talk about obamacare now because the accusation was blade early on after the court ruling couple weeks ago right away. That the court had approved the biggest. Tax increase in the history of America which would make and I guess the biggest tax increase in the history of the world. What find out if that's true among other things will break down all of the taxes if we have time. In obamacare joining us is Curtis debate is a senior tax policy analyst with The Heritage Foundation good morning to Curtis thanks for being there. So what the first -- answer that question is this say the biggest tax increase we've ever had obamacare. Well. It's a very very big tax increase -- not the biggest we've ever had with a bigger we get bigger -- right now the latest estimate that. From the -- on -- expectation is that Obama cube be about a 700 billion dollar tactic over ten years. 700 so seventy billion dollars a year. When we have bigger tax ice you know off the Tucker had. I don't have the the the actual act up on the head but. They're actually been some pretty big -- in recent history. Again at the very beat expectations that the biggest. Okay what is the thing that Americans should know about the tax increases. In obamacare. Well there's. About 48 separate. Individuals at stake in obamacare sort of a lot of different ones they range from Jimmy and something like the inning that it's 10% -- Every time you don't quit hitting that -- in the days that law -- pastor -- after it was passed. And then. That's all the all the tax increase in the in the in the law the biggest one particular January 1 week thirteen. And that's the increase in the -- jackpot which -- Portsmouth Herald that. But there's now an application that attitude that incumbent network accidentally -- to act in a -- -- 4% surtax on that in public capital gains and dividends. Telephone that the influx of growth and slow job. Wait so life and so if you're somebody who has bought stock. And you're withdrawing the money in making a profit this will -- 4% Obama care will to the oh I'm sorry no you said payroll tax so this is well this is for every. Particular over 250002. And without treat individuals. Out there so your payroll that'll go up a few legal. I'm now and you'll pay on your investment -- any of that as well and you're also you know pliable but will. We all pay upright this sort of but it yeah -- -- -- no doubt about that. Right but the people being hit are ones who -- -- higher tax bracket that the president said he would never hit it right I mean that was -- pretty it would. No you can't always promised he said there'd be no new taxes for anybody making under a quarter million dollars or something right. Was. It -- that tax increase. Does it is cute that -- broke in a lot of that the mandate axes that's ample. -- -- -- -- -- -- -- -- -- -- And people making less intuitive to be out there that 2.3 percent excise tax on. Medical devices so anything from on the predator defensive skills he MRI machine and prosthetics the BN news anchor attacked -- -- Item that or -- the price drop for any any patient who he's a doctor at. So this is a federal. Excise tax for ownership of the devices does that mean every year or is it just when you purchase. 2.3 percent OK it's it's sales tax effective. For medical devices to raise the costs of health care before the government starts picking up the ten. -- Pretty much how silly -- that -- payroll tax thing a 4%. Increase in the payroll tax for people making over 200000 dollars a year is that that's straight 4% off of the money they're making is an argument -- -- Randy Ayers and the four points of that going to the government or is it four percentage increase in the tax. Well this two part to increase the the first part of the 1% increase of attack and your wages. Belt to get over 2000. Its second part -- 4% certain that investment constitute capital gains. In the capital gains -- -- over 250000. You'll now aid during next Campbell injury it was a 20% he -- 20% plus two point 8% surtax team paying 28. That is a stunning increase is enough. That it increased the dividend increased a lot bigger goes 15% this year. To 40% next year ago at -- Omnia. Assert that but the 44 but almost tripled from the tournament. Now you can you characterize that as something that would impact economic activity. -- are you being. You know exaggerating it because you conservative outlook or. But I let's break it down -- and and talk about how much impact these taxes would have. While the government exaggerated may -- I think we're seeing a slowdown now because it is certainly at all. All the stuff that -- is done everything Obama cared outbreak in stimulus. I think you'll see your future epidemic on me today from the president hardly talking much tax increase. Technically he talks about a tax increases that it appeared -- luxury tax that that there's. I think we all understand that there's trepidation in the marketplace does nobody knows what's coming down the pike in terms of higher taxes but. That's different from what would be the impact of these things were implemented. Eight four point penalty on investment income is that enough is there any evidence through which we can extrapolate accurately whether that's enough to change people's behavior. And what would they do differently with their money because of that. Well it will a target because it's already its argument that. Keep businesses investors it was that -- forward looking. And -- looking forward between thirteenth in massive tax increase of the change their behavior that and that's only on your. I investors there are saying you know -- you know at that with these higher -- I -- an article indeed investment would have done. That if there's an. So it doesn't have a technical perspective debt. -- we're talking with Crist. Breaking down new taxes what else do we need to know about new taxes coming in you said there -- twenty overall. Yep that's what it to get an hour to get through all of my share. -- -- Little -- the -- economy in this in the by 2013. There is a bigger tactic come later on it that we each -- and that the new 40% excise tax on what they refer to it Cadillac health that your. The you have health insurance plan that. Valued over certain. Daniel -- 40%. Affordable and -- excess over that amount and it's it's about 20000 dollars for every point. Which sounds an awful lot but I think you have to look into what you you're paying your report they return to find out that a lot of it has help -- when they get mighty close -- that. That's special. So. If any plan that costs more than twenty grand a year would get hit with this 40% excise is every cent. Right and what's likely to happen is that insurers are likely not -- Offer plans that don't that they below the threshold so you end up you want them getting. Yeah -- 99999. Plans. Weigh into it which means you're gonna get a plan that. -- less -- does that. But why this is that attacking this is part of the hate the rich campaign -- two. Try to penalize those who were doing better. You know it it's -- revenue raiser. And -- Exact way in humans and should have been done along time ago which you've capped it was in particular equipment health insurance right now you can get on the minute. And health and -- -- when an indictment important tax free. It's one of the major drivers of the help health insurance market. The promise that this is it really it doesn't really that are really acts like an effective cap would would. And it doesn't it doesn't help -- any of the problems that come from the input that system we have a deep -- evil rhetoric. How many people are getting these fancy plans you would be a CEO word or somebody high up in an organization. To be given health care plan that -- insurance policy that's costing more than twenty grand a year wouldn't. Actually don't think it's true I think -- credit union yeah and has plans that are -- that. You know a lot of there the -- release of the don't want people don't -- seen or know what it's been caught what has been caught because my mind -- for. Pay for it I didn't know what I pay that I pay my share of the premium equipment or equipment that -- so. That that's that's the thinking behind it it's just a it's a bad way of doing Internet beach's city awaiting raised a lot of revenue. Okay what did have an impact in terms of -- you're saying ever -- just -- just across their plans and I assume. That people would find other ways CF the other benefits out their because. The trouble of government regulation is that people try to escape that then that's the nature of life in the figure out loopholes right. -- -- -- offered Dempster wasn't expecting HIV unions and to get exemption from the -- That what they didn't get into these -- that -- except notre let's about it but they delayed implementation of the task. If the result of particular thing next year between fourteen. But no I think in between eighteen that gave to keep the -- time you. I just have plans to get around that. Our -- to have a texture its X 8680 asking about the home sales tax because. Isn't there any real estate transaction tax it's part of obamacare. The other isn't that it's so common misconception there right now there's yeah. You don't know capital gains tax on the here you put your own less. You the capital gain of 500000 dollar. So you can at the buyouts are saying. A 100000 dollar and I -- for 600000 dollars to the capital gains that isn't that where it's at -- earlier situation. You had a I don't develop minority you can -- -- -- there's no tax on routine typical. But that is -- obamacare tax that penalizes windfalls that come from real estate sales. Not really it's the surtax and kept looking into the type -- -- Okay I -- -- so it's not a real estate tax -- say about it's a capital gains tax increase that could apply to money made on a big. Real estate sale which by the way -- in in past decades wouldn't have been heard a thing where you bought a house. Twenty years ago for a 100000 and now you're selling -- for six or 700000 outside but but going forward things are moving more -- the other direction I think. Yet it. It in the very rare situation in the 500000 dollar team. Curtis -- -- is here from The Heritage Foundation we're talking about obamacare taxes and so that one though the Cadillac plans taxes. A couple of years further down the road anything else out in that I assume they push these things out so they wouldn't have to fights over. All of this person out there so that they're not really feel that -- the congress that -- that does -- feel responsible. I didn't take the blow that we're making again the attack that -- -- so far have been kind of have been smaller in nature and it -- you've got some pretty angry -- there but the fact that there hasn't really a broad based tax. On effective until next year when. When that increase in the in here look at the in the second they'll have serious economic damage. Congress will be. Left to the left to explain that because it's -- really it'll certainly slowed -- created the worst possible time. So breakdown that payroll tax again for us. It made the -- that's by about a percentage -- for. Those who earn more than 280000. A year in -- out -- and then applied. A three point 8% Serb capital investment of capital even give them. -- All right we have I think this policy was the most honest person said we really have to pass obamacare -- -- -- I mean this -- this is our education that we're getting and I I suspect if you actually read. The legislation -- -- the these sort of common language. Synopsis of it when you study. -- -- -- -- -- -- -- -- -- -- You have to be some kind of lawyer in the National League legislation but sometimes you have the detector with them on because although. The the calendars or they're always right but to read duty thing uses China and around the bill. Haven't -- it's like reading some kind of mathematics or physics or something you've never seen before. Yet referred back previous law the previous section that it -- law. Our previous section of the bill that that you talked about how they actually have you almost have to. Or. Work on these things -- partners it was referring to but you know we have become the Pakistani -- can figure -- What that income threshold they're targeting. You know and it's in the debate for the tax yet do a little bit of both. All right thank you very much Curtis do bay here from The Heritage Foundation -- a senior tax policy analyst. Thank you cursory -- WRKO. Thank you much appreciated so they have there's a lot of bad news coming in terms a higher taxes we've got some good tax on this. Between my employer contribution in mind my family planned cut costs over twenty K and I certainly wouldn't consider Cadillac that's from 508 -- -- are from five VoIP. I own a business my blue cross blue shield family planned cost -- 19100 dollars a month. By no means Cadillac. 617 I work for Verizon as union it's a Cadillac plan lot of people going to be impacted by this Peter good morning your NW RKO. Yeah. Currently like I look at New Hampshire what intricate aptitude to comply I would definitely how many -- chapter of our legal abortion. I don't know that it's. New Hampshire well all of the states have to do things to get themselves in alignment so there's new Medicaid money offered for example. That that the state can accept or not accept according to the Supreme Court ruling so they'd be changes your Medicaid plan if you get into alignment. And then you have to create this. It is disconnect terror organization like we have in Massachusetts which is basically lay down. A store that in goaded to by plans that the government has the ability to then influence with what kind of plans are being offered. But I don't know that it'll have any large impact on beyond the state otherwise but I can be wrong about that -- good question Peter thank you for the call. -- your necks on the -- fiber -- high neck. It. As we've seen in the past if you work say like you know that's forty isn't -- to note that actions forward case began. So we've seen let recessions since that ruling case or earnings seem like considered recession with people of last 304050%. Of what it. Well I think that's going to be entirely exacerbated. By the tripling -- dividends tax the people will look toward strategic. And also. The yet. The movement -- capital gains from 15% opposite 29%. That's totally -- just destroy it would. Would. The people's outlook -- bit of investigating camps is directly against our OK which is terrible -- 401 case even worse. What do you do instead if you're or if you're making a million bucks a year. -- what do you do about putting your money in the stock market. But the only that you probably can't do -- they hold their prices probably yet. But consider investing in municipal bonds are racing it's actually it's going to be very difficult immediately a lot of push towards the movement of approaching land or. Or you know real estate vehicles that might improve that -- -- But anybody who's gonna by the I think it's -- there are a total strangle it string it was Asian. Investment income directly into the stock market. But -- it's -- -- the people. Who were relying on the stock market two Q. Helped us forward case in diaries. If you have left but it they thought. Thank you neck appreciated you know this sort got to make the campaigns in the future interesting because obamacare will never be in one fell swoop dismantled. He'll take pieces of under par apart and throw away pieces in one of them might be the capital gains tax. And the payroll tax penalty for higher earners because dole you know it'll be campaign issue Donny good morning TO. Hey -- Eight. A big -- the American people are missing years. When employers stop offering. Health care plans where right now my employer pays 90%. -- premium every month. So when they stop offering it and work force -- to these exchanges. Now instead of paying 10% of my premium I'm now having to pay a 100% of my premium. That's all after tax money. So I'm really gonna get it right there that's gonna -- eight models. Because now a much larger or should apply after tax income is going to be going towards paying health insurance right. Because not only is your employer paying a big chunk of it but there any -- tax break for doing it -- so the tax break is being thrown away. And at the same time though I would I would expect that employers would. On being relieved of the costs of health insurance would be offered raises to their good employees to hold them. I don't know -- -- you know -- likes speculation. You really think that's going to happen I don't see that happening at all. I think I think that as a business person you're gonna think apology. Now paying a penalty I'm gonna take that money and let it go I'm gonna give the government to pay -- penalty but not offering health insurance. -- -- -- Our penalty is much smaller than the actual cost write it on saint -- in a competitive market place. So if I work for business day and business a dumps its insurance business deep -- decides to keep it. As a way for example to get good employees. Then. You could still be running company and say you know we're gonna lose he's gonna plays were gonna offer them extra money and that's how we're. But they adapt -- safe -- that extra money equitably pay people Malkin -- have to match. -- -- did I hear the guys Dave that step if that is dark art out right now they pay 15%. Or you're -- you know you Medicare tax so whatever it -- -- that they. That day air -- a day so that it also increasing. Thought they increase your pay that -- and also have to increase the amount that their pain or your Medicare. -- in the old senate. All water yet they all languages since its depressing whenever you think about the higher taxes coming in the marketplace thank you -- 6172666868. It's WRKO.