In this time where all our elected officials keep telling us how concerned they are about the middle class and how they don’t wan’t their tax burden to go up, they are completely ignoring some huge tax increases caused by Obamacare.
In a recent article on TownHall.com, John Goodman lists jut some of these taxes. For example there is a medical device tax of $20 billion. Who do you think will pay this tax? One of two people, either the end user or the manufacturer. As we know from simple economics, it won’t be the manufacturer. They will either charge the end user (you) or they will find a way to cut other costs. As Goodman points out, one way would be through sending jobs overseas:
This 2.3% tax on gross sales could amount to a very large percent of after tax profit ? thus encouraging an industry that is providing very good domestic jobs to relocate overseas. Meanwhile, the burden of the tax will be reflected in higher prices for anyone who needs an artificial knee or hip or a pacemaker.
Then there is the higher payroll taxes:
The Medicare payroll tax is currently 2.9% on all wages and self-employment profits. Under this tax hike, wages and profits exceeding $200,000 ($250,000 for a couple) will face a 3.8% rate instead. This is a direct tax hike for small business owners, who are liable for self-employment taxes in most cases.
As a former small business owner I know what my plan of action, I would either lay off, cut hours or go out of business. Every day we hear of small businesses doing the same thing. Here is a list provided by Americans For Tax Reform. There are other taxes we don’t hear about as well, and certainly there will some we won’t hear about until we have to pay them.
Unless we change it, we can look forward to more of this. Whether it is health care or “green” transportation we might be forced to use, the precedent has been set, unless we change it.