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Home » News » Opinion » Free Press » Taxes unlimited
Saturday, Nov. 7, 2009

Taxes unlimited

Despite President Barack Obama's promise not to add "one single dime" to "any" taxes paid by families making under $250,000, ObamaCare medical reform proposals in Congress would impose tax hikes on the middle class and even the poor.

That is most obvious in the hefty tax penalties it would levy on those who do not buy government-approved medical insurance.

But here are two more big ways you would see your taxes rise -- even if you are not one of "the rich":

* Bills in the House and Senate are expected to include a $20 billion tax on manufacturers of medical devices such as wheelchairs, heart stents and artificial limbs. Those and other devices enhance the quality of life of the disabled and, in many cases, save lives. But manufacturers of the equipment would have to pass on to consumers the new $20 billion tax, making it more expensive to buy a wheelchair, an artificial limb or even a device to keep one's blood flowing properly.

The Associated Press noted that medical device makers are "one of the few" medical industries "that failed to cut an early behind-the-scenes deal with Obama and Democrats to help pay for an overhaul." Singling them out for a new tax looks an awfully lot like revenge for their not being "cooperative."

* The tax-free flexible spending accounts that millions of middle-class Americans use to help pay for their medical care would be sharply curtailed. Senate and House legislation would slap a limit on employee contributions to the accounts. There is currently no federal limit on how much a worker may protect from taxes with those accounts, so workers have an incentive to save pre-tax dollars and use them to pay medical bills. But the ObamaCare legislation would allow only $2,500 in contributions. So a person who responsibly helped cover his own medical expenses by shielding, say, $5,000 from taxes in a flexible spending account would be taxed on half that money.

Congressional Democrats want to use both of these new taxes to raise money for ObamaCare socialized medicine. So much for the middle class not paying "one single dime" more in taxes.

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