Congressman Aaron Schock - Health Care Bill's Tax Impact

The U.S, is apparently heading down the same path as the U.K.; now basically a social democratic country in which U.K. voters (In the U.S. 39% favored ObamaCare vs. 30% a short while ago), are mainly interested in government services, environmental virtue and "free" medical care service. Now the U.S. is headed in the same direction courtesy of most of the Democrats supporting ObamaCare.

Merle Widmer

From: Congressman Aaron Schock [mailto:rep.schock@mail.house.gov]
Sent: Friday, March 26, 2010 10:10 AM
To: Scott Sorrel
Subject: The Schock Report - Health Care Bill's Tax Impact





THE SCHOCK REPORT

Dear Friend:

This week the House passed a mammoth, $1.2 trillion health care package which spends $940 billion in coverage subsidies, $144.2 billion in additional mandatory spending, $70 billion in discretionary spending and $41.6 billion in unrelated education spending.

This bill is essentially the largest tax increase in American history. Below is more information on the impact this bill will have on families, individuals and small businesses.

Increases Financial Burden on Families & Individuals
There are 12 new tax increases in the bill that increase taxes for families making less than t$250,000 a year. There is an overall tax increase of $569.2 billion nationwide over the first 10 years and Illinois' share of increased taxes are $23.9 billion.

Individual Mandate Tax

Taxpayers who fail to prove to the IRS that they had "maintained essential coverage" during each month of the year would have to pay a new IMT when they file their federal income tax returns.
For 2016, the IMT would equal the greater of: $750 per person (up to a maximum of $2,250 per household) or 2 percent of household income.
Medicare Payroll Tax

Expands the Medicare payroll tax an additional 0.9 percent - for the first time in history - to all investment income for individuals with incomes over $200,000 and families with incomes over $250,000.
Because the underlying Senate bill does NOT index this new tax for inflation, more and more middle-class American families will be hit by this tax over time, just like the Alternative Minimum Tax (AMT).
Capital Gains Tax

Includes a new 3.8 percent tax on "unearned income" of people who have adjusted growth income above $200,000 for individuals and $250,000 for families. (This includes interest, dividends, passive business income and capital gains).
This adds up to $210.2 billion in total new taxes. This new tax rate would raise top income tax rates on capital gains and dividends from 15 percent to 23.8 percent by 2013.
Increases Premium Costs

Insurance premiums will increase on average by 10 to 13 percent in the individual market, affecting over 612,000 people in Illinois.
In Illinois the average annual individual market premium is $2,499 for a single person.
Individuals in Illinois will see an additional $150 to $325 dollar increase in their monthly premium or an additional $1,800 to $3,899 increase annually.
Impact on Small Businesses
The health care bill imposes $52 billion in new taxes on employers who cannot afford to pay their employees health care, imposed at a time when unemployment is 9.7 percent.

Employer Mandate

$2,000 tax on employers and businesses, with more than 50 employees, that cannot afford to provide their workers with health coverage
In Illinois, there are approximately 21,684 firms with 50 to 499 employees.
Applies these taxes to part-time as well as full-time workers. As if these higher taxes were not enough of a disincentive to prevent firms from hiring workers, the reconciliation bill also includes an unprecedented extension of the Medicare tax to all non-wage income. These tax increases will raise the top marginal rate on small business owners by 20 percent.
Large employers that offer coverage and have employees that receive a premium tax credit will pay penalties of $3,000 per employee receiving a premium credit.
Latest Videos

Congressman Schock on health care reform


Congressman Schock on public service


Congressman Schock talks national security on Meet the Press


Congressman Schock calls for a jobs bill


Congressman Schock discusses life in Congress





Take Our Survey

Do you support reducing our national deficit by implementing spending freezes and cuts in our FY 11 budget?

TAKE THE SURVEY

We hope you will take a moment and forward this email to your friends and family.

If you are having trouble reading this message, try viewing the web version.

HOW CAN I HELP | ABOUT AARON | THE 18TH DISTRICT | ISSUES | MEDIA RESOURCES | CONTACT



Click Here to view this email in your browser
Click Here to be removed from this list