Health care tax hikes: Who will get hit the most?
New report outlines impact on Americans
- Duration 3:41
- Date Aug 10, 2012
New report outlines impact on Americans
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President says the rich is should be paying their fair share and now a new report shows that the wealthiest Americans.
We'll take the biggest hit by the tax hikes in the new health care law according to the AP the top 2% will carry the highest burden.
That includes individuals earning more than 200000 dollars a year families making more than 250.
Among the increases a point 9% Medicare tax and a three point 8% tax on investment income that's already on top of the 50% capital gains tax.
Which will also be going up Steve Moore is a senior economic writer at the Wall Street Journal good to see you Steve so.
Good morning the rich get hit the hardest.
It's true that the rich get hit hard under that tax -- and I health care plan but it's also true that just about anybody who uses the health care system.
Is gonna get hit with higher taxes there.
Taxes on medical devices there are taxes on.
Health care plans don't forget employers that provide health care or don't provide health care are gonna from have to pay higher taxes so.
It's really across the board I count about fifteen or twenty.
New taxes that start taking place in 2013.
Fourteen or fifteen under this -- and may -- one more thing you're tested maybe the most important thing let's not forgot that the Supreme Court determined just last month.
That these job -- implode -- individual mandates to purchase health insurance those are taxes and acting class people.
Up to 15100 to 2000 dollars per -- You're talking about the penalty for those who choose -- not to get health insurance and those are only people who make the decision not to get it they'll be taxed as well but the AP analysis.
That I cited at the top of this in the introduction Steve said -- for the vast majority.
Of people to health care law will not mean spending more money sending more money rather to the IRS and roughly twenty million people eventually we'll get.
Tax credits that start in 2014 to help them pay insurance premiums that out yet.
The -- the problem that analysis is that doesn't take into affect all these indirect taxes the taxes on.
Drugs the taxes on medical devices the kinds of things that we use when we access the health care system.
Now it is true that there are gigantic tax increases on the -- Under that Obama care plan for example you mentioned the one that I think is most destructive to the economy three point 8% investments that tax surcharge.
By the way you were right that we have a 15% capital gains tax right now.
Under the Obama plan next year if we allow that.
Bush tax cuts it goes I don't wanna -- -- and then you add three point 8% up up about.
That's at 24%.
Tax or just short point 4% tax I'm not capital gains at a time by the way when businesses aren't in -- think.
That dividend tax by the way would go up by almost threefold so I think these are very harmful to the economy I think -- a lot of middle class families that are struggling to get by.
These all of these little fees and taxes and penalties whatever you want to call them.
Are gonna really -- up and put a pitch on their wallet what about repealing obamacare because that would have that would have cost as well who would pay for that.
And how much -- that price tag be.
Well I you know that's going to be the big battle Royale come 2013.
Especially if Mitt Romney wins this election Republicans will make that a top priority -- that of course if obamacare is repealed or big parts of -- are.
Then you're gonna see something take its place and we don't know exactly what that will be.
But there's no question we have to reform our health care system because these out of control costs in terms of the premium sound plans.
Are like attacks on American businesses and consumers and don't forget.
-- last year we saw a gigantic increase in premiums even though the idea behind obamacare was to lower of these costs.
Steve -- is a senior economic writer for the Wall Street Journal -- by the same parent company of this network Steve good to see.