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Obamacare costs to fall mostly on middle class

Posted: July 2, 2012 - 4:14pm

Taxes resulting from the recently Supreme Court affirmed Obamacare will fall mostly on the middle class, according to the Wall Street Journal’s chief economist.

Wall Street Journal’s senior economics writer Stephen Moore said that nearly 75 percent of Obamacare costs will saddle those Americans making less than $120,000 annually. That would be the middle class. “It’s a big punch in the stomach to middle class families,” Moore said.

“Back in 2008 Barack Obama told supporters health care should never be purchased ‘with tax increases on middle class families,’” said Moore.

“By 2016, the fine (for those not buying health insurance) could be over $2,000 a year,” Moore said. In fact, the tax for not buying health insurance for an adult will be $95, and $695 in 2016. For families not buying health coverage, the tax will be a modest $285 in 2014. However, by 2016, those choosing to “freeload” on the system will be taxed $2,085.

One of the ideas behind the Affordable Health Act was to reduce the cost of health insurance. However, “we’re finding insurance premiums went up eight, nine, 10 percent,” Moore said. “If premiums continue to go up at that pace, people could be paying $300 to $400 more a year compared to what people are paying for health insurance.”

“The rationale for Obamacare was that it was supposed to be a solution to the problem that too many poor people do not have insurance. Even the Obama administration itself admits that the Obamacare mandate will not result in insurance coverage of 100 percent of Americans,” according to the Guardian Express. “When the mandate arrives in 2014, too many people may find themselves in the situation of our hypothetical worker in the new normal economy.”

First, this is not a normal economy. The United States has been in a deep recession since 2007 and there are few signs that suggest we are nearing an end to this ongoing downturn.

Second, this tax on those persons who can least afford it, will cause families to experience a further decline in their living standard.

I guess taxing the middle class, where most of the tax revenues exist, makes sense to the Obama administration. It will, however, cause a deepening of the recession — especially for the middle class.

Keith Hansen

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OldFarmBoy
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OldFarmBoy 07/02/12 - 05:53 pm
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3

Keith

My plan is to just quit working & have snow & fish pay for my insurance. I hope I even get a cell phone to go with that little plastic card I see being used all around. Can anybody say GOOD luck to the working class?? Didn't think so. I wonder how many eelpouts/lawyers & CEO'S are sitting in board meeting since the ruling?

captron
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captron 07/02/12 - 08:35 pm
4
5

Can You really believe anything ?

That Rupert and his news corporation prints ?
When Dick Cheney became a regular contributor to the Wall Street Journal ,I didnt renew my subscription. For obvious reasons ,guess Im one of the few in this neighborhood that remember what a mess he and W made of things. And what dramatic steps were taken to keep the entire economy from crashing., think stimulus for all you economists out there with memory loss... Maybe provisions of the ACA will help with some of those problems the Tea Party folks seem to have remembering how we got where we are now. History does repeat itself....

muehlbau
19721
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muehlbau 07/02/12 - 09:30 pm
5
4

You remember Bush's mess, but seem oblivious to the current mess

...created by your fearless leader. You are a "true believer" Captron. I'm sure your comrades are pleased with your performance.

southie11
20131
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southie11 07/02/12 - 09:44 pm
5
5

Iraq and Afghanistan Wars

Top anything going on today.

Fair n Balanced
40535
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Fair n Balanced 07/02/12 - 10:26 pm
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4

Don't forget

Libya (Illegal War) and Egypt (Wonderful Democracy under Muslim Brotherhood control) Yes your dictator is doing well for the world. Too bad his 5 trillion dollar expenditure has enslaved the next two generations. Lincoln would roll in his grave if he knew.

OldFarmBoy
36576
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OldFarmBoy 07/03/12 - 07:07 am
5
3

South & Fish

That is all I ever see from you. 2 wars. Are you a member of that peace commune around here?

Fish I had the pleasure again this morning to just shake my head. A big boy around 20 looked normal & could work like a mule at his size was in front of me at gas station & he bought 53 bucks worth of JUNK. pop, donuts,double soyburgers & 1 small milk with one of those fancy little cards I like to bring up. How about we start with that to on compromise & rebuild??

muehlbau
19721
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muehlbau 07/03/12 - 07:24 am
6
3

Still in Iraq and Afghanistan and maybe heading for Syria...

Didn't Obama promise us he'd bring all our troops home by now? Apparently there are reasons for keeping them there. And frankly, I do think our troops and special forces have put a serious dent in Al Qaeda. Of course, we're not going to be able to ever NOT focus on Islam as a threat. Muslims forget what they've done to other people but not what other people have done to them, and they hold on to that burning anger over being "wronged" forever.

GetaGrip
1162
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GetaGrip 07/03/12 - 07:25 am
6
3

"can you really believe

"can you really believe anything that Rupert and his news corporation prints......the Wall Street Journal, I didnt renew my subscription."

And traded it in for Comedy Central. A source of news a little more suited for your intellect. I suppose you get your business news from where; Dilbert comic strip?.

Fair n Balanced
40535
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Fair n Balanced 07/03/12 - 08:33 am
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3

OFB

That was probably south or dithers stocking up for a hard day at the computer.

muehlbau
19721
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muehlbau 07/03/12 - 09:23 am
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2

You are making some false assumptions, Scary...

Not all people who don't buy insurance are having other people pay for their expenses. When I was younger and my employer did not offer health insurance I self-insured (i.e., I paid for my expenses out-of-pocket). Generally this was less costly than buying insurance. Furthermore, the vast majority of people who are expecting you to pay for their health care expenses today are going to continue to do so.

People who are healthy but who can't afford insurance will pay the fines because they are cheaper and they will not be added to the insurance pool, which is what the government wants, because it's the people who are healthy and don't use insurance that keep the costs down.

The fact is that we'd save way more in health costs if people on food stamps could only buy non-processed vegetables, lean meats, non-fat dairy, and whole grains with them than we ever will through socialized medicine.

DiscipleofSin
5339
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DiscipleofSin 07/03/12 - 10:29 am
6
3

So, scaryphailin, you think

So, scaryphailin, you think people should have to take some personal responsibility? like getting off the public dole and earning thier own way even if it is harder? Maybe, not taking from one group to give to a different group just because they make poor decisions? Sounds like a great idea.

pdnet15
15836
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pdnet15 07/03/12 - 10:49 am
4
3

Romney and Obama agree:

Health care law’s individual mandate is not a tax.
Eric Fehrnstrom said "The governor disagreed with the ruling of the court; he agreed with the dissent that was written by Justice Scalia, that very clearly said that the mandate was not a tax. The governor believes what we put in place in Massachusetts was a penalty, and he disagrees with the court's ruling that the mandate was a tax."
While pushing for the law before it was passed, Obama insisted that it was a penalty, not a tax. But during oral arguments in front of the Supreme Court in March, his solicitor general was sent to argue that it was a tax.

southie11
20131
Points
southie11 07/03/12 - 11:16 am
3
4

I love that the President's campaign

Is giving away Obamacare bumper stickers!

pdnet15
15836
Points
pdnet15 07/03/12 - 12:01 pm
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5

itter, I believe that FNB had you peg right when he said

you were a child writing as an adult. You've said nothing substantial, nothing related to any article, just a child throwing a temper tantrum. When you get to junior high, let me know.

muehlbau
19721
Points
muehlbau 07/03/12 - 12:30 pm
4
2

The difference being that Obama flip-flopped and Romney didn't..

Obama was against the mandate before he was for it.

http://www.youtube.com/watch?v=EoSnqofelsQ

Romney never supported a federal mandate for health care.

Prove me wrong if you can (which you can't).

muehlbau
19721
Points
muehlbau 07/03/12 - 12:33 pm
5
2

You don't have a right to protect me from myself, Scary...

...but I'm sure you think you do, which is why you ARE scary.

dutchman7
7760
Points
dutchman7 07/03/12 - 12:43 pm
2
2
muehlbau
19721
Points
muehlbau 07/03/12 - 01:11 pm
3
3

Notice how the lefties always ignore hard evidence?

It's a case study in full blown denial.

dutchman7
7760
Points
dutchman7 07/03/12 - 01:19 pm
1
4

Despite Republicans' putting...

extreme conservatives on the Supreme Court, the constitution of the court itself (pun intended) has a tendency to move to the left...

Link:
http://www.startribune.com/opinion/commentaries/161139475.html

muehlbau
19721
Points
muehlbau 07/03/12 - 01:29 pm
4
3

Dutchie...

...please explain to me why the Obamatax decision is not another example of legislating from the bench. Because the majority really had to rewrite the actual legislation in order to provide an interpretation that it was a tax and not a penalty.

And your claim that the court moves to the left doesn't explain why Kennedy moved to the right in this decision. I think the much simpler explanation is that Roberts is a coward who took the path of least resistance while setting up this upcoming election as a referendum on Obamatax, a referendum that I think Obama is going to lose based on the backlash from the 2010 mid-terms.

dutchman7
7760
Points
dutchman7 07/03/12 - 01:35 pm
3
3

Congress and the Presidency changes more frequently...

Justice Roberts will be there for a while and is part of the the balance between lots of elections...A Political event...

As FDR wasn't happy with the Supreme Court and tried to load it with political favor, it really didn't happen...

Same thing over the past 30 or so years with past and current Presidents...

Justice Roberts in his confirmation says he's like an Umpire, not a Manager of a Baseball game who spits and moans and sometimes gets tossed out when the decision isn't to their liking...

muehlbau
19721
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muehlbau 07/03/12 - 01:39 pm
3
1

You didn't answer my question, Dutchie...

...I was asking why the latest decision isn't another example of left-wing legislating from the bench? The law was not written at all as it was interpreted by the court, nor was it sold as a tax, before it passed by the narrowest of margins.

dutchman7
7760
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dutchman7 07/03/12 - 02:46 pm
4
4
muehlbau
19721
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muehlbau 07/03/12 - 03:14 pm
4
2

So you don't mind legislating from the bench?

Does that mean you support all the Supreme Court rulings?

muehlbau
19721
Points
muehlbau 07/03/12 - 04:13 pm
4
1

I can prove he didn't, Scary...

...that video was from 2006. It deals with health care coverage in Massachusetts, not Obamacare for the United States of America. You really need to pay attention to timelines or you will be duped every time.

warren955955
424
Points
warren955955 07/03/12 - 04:56 pm
5
0

The Cost

One side says this and the other side says something else. So what I would like to know is what is the true cost of the health care program? I have read many articles and no one seems to really know anything about it? I am not sure if it is a good idea or not? Can someone explain all the costs involved and how it will be funded....not some smoke screen answer but actual facts?

Fair n Balanced
40535
Points
Fair n Balanced 07/03/12 - 05:38 pm
3
2

The rest of the lies

won't be exposed until 2014, but believe me it's a fairy tale of unheard of proportions. It's all about control. obama and his cartel are already admitting that it won't help the poor it's supposed to help. It won't be until after the election that they admit they intend to rape the middle class worse that ever before in history.

muehlbau
19721
Points
muehlbau 07/03/12 - 05:57 pm
4
1

Here is a WSJ article that explains whatever the

...CBO is telling you ACA will cost, it is likely to be far, far more based on their past history in estimating the costs of Medicare and Medicaid.

http://online.wsj.com/article/SB1000142405274870374660457446161098524306...

The CBO has already estimated that ACA will cost substantially more than what Obama and Co. claimed it would cost (and as I mentioned above, historically they tend to underestimate).

http://cbo.gov/sites/default/files/cbofiles/attachments/03-13-Coverage%2...

I'll leave it to the supporters of Obamatax to explain to you how this plan is going to save money by covering 10,000,000 more people (many of whom will be subsidized), adding coverage for adult children up to age 26, free birth control, etc. Don't hold your breath for any numbers, though, because it's an article of faith with them that it's going to save oodles of money and they don't put much stock in studies by the government budget office that say it will add to the deficit.

muehlbau
19721
Points
muehlbau 07/03/12 - 06:05 pm
3
1

Erasing...

...duplicate.

Fair n Balanced
40535
Points
Fair n Balanced 07/03/12 - 06:37 pm
5
1

It is estimated

that only 15 state exchanges will be operable by 2014. Therefore, employees in 35 states won't have anywhere to get insurance when their employers drop their current plans due to cost. At the same time about half of the private insurers will have been driven out of business by the government. The only way to get a subsidy to help pay for Obama's plan is to apply at a state run exchange. I see a few problems coming.
Remember this isn't about health care it's about health insurance. Politicians, government employees and the poor are already covered. It's the working people that are about to really find out how bad a dictator and his loyal liberal sheep can rob them blind and force them into slavery.

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