The Obama healthcare scheme includes a buildup of another 17,000 IRS agents, but this is merely one indicator of the dangerous booby traps this law has set.
Of course, before Obamacare was rammed through Congress, congressional leftists such as Rep. Anthony Weiner (D-NY) were insisting on Fox News that critics were “making up” the charge there would be an IRS auditor hiring bonanza. But that charge was confirmed less than a day later by none other than IRS commissioner Douglas Shuman in his testimony before Congress.
Sadly, this is just the beginning.
An estimated 77,000 job providers who employ between 50-200 workers face a potential $2,000 per employee fine if the new army of IRS healthcare enforcers find them to be out of technical compliance with the mandatory insurance feature of the new law.
An additional 116,000 small businesses employing between 35-49 workers will also come under the jurisdiction of the new IRS health enforcement division.
The perverse result?
Employers have even MORE incentive to hire the smallest number of employees possible – yet another body-blow for the millions of “structurally-unemployed.”
As hiring caution sweeps through the already-prostrate private-sector, consumer spending on which so many other businesses depend for survival will grow even weaker — part of a vicious downward job-destruction spiral.
Tax Credits Canceled, Tax-Free Health Accounts Restricted
Meanwhile, if you are among the country’s tens of millions of Health Savings Account (HSA) and Flexible Spending Account (FSA) holders, starting in 2011 you will no longer be able to use tax-free funds for over-the-counter drugs. And if you pull money out of an HSA for a non-qualified expense, your tax penalty also doubles to 20% (in addition to the existing requirement that your withdrawals are added to your taxable income). And contributions to tax-advantaged FSAs will be capped at $2,500 starting in 2013.
Even more surprises lurk for investors and patients. Facing a new tax aimed straight at life-saving medical device innovators, such companies are already laying off workers. (Zoll Medical Corporation announced it will eliminate 1,000 highly-skilled workers.)
Other trap doors in the Obamacare monstrosity (which even pro-Administration fat-cat Warren Buffett called “2,000 pages of nonsense…”) include a 2.9% surtax on so-called “unearned income” such as dividends and capital gains. The Administration has admitted to Bloomberg that this new tax will be lumped on top of the scheduled rise in tax rates on dividends and capital gains tax — setting the stage for almost a 25% rate of taxation on capital formation in the United States going forward.
With government finances already stretched to the breaking point, this new entitlement will not only drive down health care quality, but it will also drive up both consumer costs and taxpayer costs.
Five Tips to Survive American’s Broken Health Care System
Here are some suggested action items going forward:
- Improve your health through exercise and diet. The rising risks involved in encounters with America’s increasingly dysfunctional and costly medical system give you yet another reasonto stay in shape;
- Become more medically self reliant, take steps to boost your immune system, and consider using health supplements to improve your health.
- Get a low-cost, preemptive medical screening exam that insurance companies don’t cover.
- Familiarize yourself with lower-cost, high-quality alternatives, such as offshore medical services. I’ll send you a free PDF report on this important subject if you simply reply to this email and type “Expat Medicine” into the subject line;
- Batten down the hatches for an unprecedented tax-collection jihad by a reinvigorated IRS and a cash-desperate federal government;
No, it’s not a pretty picture, but you can indeed take steps to prepare for the impact of Obamacare.