When Nancy Pelosi urged America to stand down so that Congress could pass Obamacare in order to know what was in it, understandably many feared the unknown. Now that further study of the bill has taken place, it seems those fears, and many more, are completely justified.
The central Obamacare mechanism for increasing insurance coverage is an expansion of the Medicaid program.
To pay for this expansion, the bill takes $529 billion from Medicare, with roughly 39 percent of the cut coming from the Medicare Advantage program. This represents a large transfer of resources, sacrificing the care of the elderly in order to increase the Medicaid rolls.
For all this supposed reform, you, the American taxpayer, can expect a bill to the tune of $569 billion.
Front and center among the new taxes is the 40 percent excise tax on those lucky people with so-called Cadillac health plans. The higher insurance costs that are driven by the government mandates will push many more ordinary plans into Cadillac territory.
If the idea of taxing people with coverage deemed too good doesn’t bother you, maybe the new 3.8 percent tax on investment income will. That will apply even to a small number of home sales, those that generate $250,000 in profit for an individual or $500,000 for a married couple.
FULL ARTICLE BY KEVIN HASSETT AT BLOOMBERG, HERE