"It depends on what the meaning of the word 'is' is."

President Bill Clinton

 

When is a tax not a tax, but really is a tax? When it's Obamacare - or so says the Supreme Court.

 

During his campaign to get his healthcare bill passed, President Obama repeatedly said this is not a tax. Nothing in the bill contains a tax of any kind. Well, our Constitutional scholar and professor President has had his words turned on him as that is the apparent reason the Supreme Court passed Obamacare - the U.S. Government can tax its citizens anyway it wishes and what Obamacare does is tax - despite what our President told us. I guess he is happy he was wrong!

 

What kind of damage is Obamacare going to do? I know we have covered these things before in one way or another, but they deserve repeating. Let me review only the very high highlights:

 

1.      It affects all businesses, small businesses as well as large ones.

2.      Smaller businesses which cannot afford to provide healthcare coverage will not expand beyond 50 employees as doing such brings about a $2,000 tax per employee.

3.      Seasonal businesses will be saddled with unexpected costs when their full time equivalent numbers increase to levels that trigger the penalty tax.

4.      It promotes the underground economy which results in less income tax paid, less collected under Obamacare and more individuals eligible, due to artificially lowered incomes, for free care.

5.      Larger businesses which are paying from $6,000 to $20,000 for family coverage could find the $2,000 penalty tax in lieu of that coverage very appealing. Estimated expense reductions for some large companies are in the billions (yes that is with an "s": at the end) per year. If you do the math, where is the $4,000 to $18,000 difference going to come from? Of course, additional income taxes.

6.      If companies drop their healthcare plans in favor of paying the $2,000 penalty, it will force those previously covered employees into the government run "exchanges". When those exchanges run out of money, the government has no choice but to cut benefits, cutback benefits to the elderly on the grounds that care is more efficiently spent on younger individuals, and/or increase taxes.

7.      It disadvantages American business, particularly manufacturing, in the world economy by adding more expense (and later more taxes to pay for all of this.)

8.      It will ultimately send more jobs overseas.

 

And those are only the very high highlights.

 

The future is not clear. It depends on the make-up of Congress and the Presidency. Additional suits are sure to follow.

 

It is more important now than ever to let your elected officials know your opinion. Please write your Senators and Congresspersons. You may contact them by using the following links: