Obama's 'Specific' Healthcare Speech: Will He Disavow Pledge-Breaking Tax Hikes...

Obama's 'Specific' Healthcare Speech: Will He Disavow Pledge-Breaking Tax
Hikes in House Dem Health Bill?

WASHINGTON, Sept. 2 /PRNewswire-USNewswire/ -- There are four tax hikes in the
House Democrat healthcare bill (H.R. 3200) that violate President Obama's
promise not to raise "any form" of taxes on families making less than $250,000
per year. The White House has told reporters that Obama is going to get
specific on healthcare policy in a speech next week, which begs the question:

If Obama is serious about keeping his central campaign promise, will he
disavow the four pledge-breaking provisions in the House Democrat healthcare
bill? They are as follows:

Restrictions on tax-deductible purchases of over-the-counter medicines with
health spending accounts like FSAs and HSAs. This isn't in the original H.R.
3200, but it did make it into Charlie Rangel's "Chairman's Mark." The
description can be found at www.jct.gov, and it's document JCX-32-09. The 8
million Americans who have a health savings account (HSA) and 30 million
Americans who have a health flexible spending account (FSA) will no longer be
able to buy over-the-counter medicines (aspirin, etc.) on a pre-tax basis.
Contrary to the Obama rhetoric, this would change the plan people currently
have, and raises their taxes in the process. This affects anyone with these
types of accounts, not just those making more than $250,000 per year.

Tax on Individuals Not Enrolled in Health Insurance (Page 167): Those who
don't enroll in a health insurance plan will have to pay a new tax equal to
2.5% of income. If they earn $40,000 a year and don't have health insurance,
they will have to pay tax of $1000. Notice how this tax affects all
individuals, not just those making more than $250,000 per year.

Tax on Businesses Not Offering Health Insurance (Page 183): If a business has
a payroll of at least $500,000 and does not offer health insurance, it will be
compelled to pay a new payroll tax of 8 percent. It doesn't matter if the
business is profitable or running a loss. Small businesses pay taxes on their
owners' 1040s. This will affect thousands of small businesses with profits of
less than $250,000 per year.

IRS Can Disallow Perfectly Legal Tax Deductions They Just Don't Like (Page
207): If a taxpayer (including one making less than $250,000 per year) uses a
perfectly-legal tax deduction the IRS doesn't like, the IRS will be empowered
to simply disallow it. The only reason the IRS has to give is that the tax
break lacks "economic substance" -- that is, the taxpayer is not taking the
deduction for "substantial" or "business" reasons. For those wanting to
engage in a legal activity to cut their tax bill, the IRS wins no matter what.

Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer
groups who oppose all tax increases.. For more information or to arrange an
interview please contact John Kartch at (202) 785-0266 or by email at
jkartch@atr.org.

SOURCE Americans for Tax Reform

John Kartch of Americans for Tax Reform, +1-202-785-0266, JKARTCH@ATR.ORG