Sunday, July 8, 2012

Who's Against Obamacare?


Now that Obamacare is officially constitutional, the next step is to read through the 2700 pages of the legislation to figure out how it affects us.  Since it is named after a children's book author, it can't be too complex, so I took the liberty of reading the CliffsNotes condensed version.  
Gallup polls show that support for Obamacare is split, meaning half of those polled are for it, and the other half is against it.  In an attempt to identify those who should be against it, I will summarize the taxes and penalties for each group affected by this novel.  
Uninsured:
Social media outlets were flooded with comments following news of Obamacare's constitutionality, and almost all of them surrounded that of the penalties for being uninsured.  There were already penalties for not having car insurance so a precedent had been set for topics of this nature.  It really was just a matter of time.  

Basically, if you don't have health insurance, you will be paying a fine to the IRS when filing taxes.  If you fail to pay the fine, there is a slim chance that you will get caught; and if you are caught, the penalty isn't much worse than the fine.  So if you want to get out of it, just don't pay the penalty.  
This isn't going to be a very big source for revenue since only 16% of Americans are uninsured, that according the Kaiser Health.  Factor in the people who will be getting health insurance and that number drops significantly.  
Top 1.2%:
Those who make more than $200,000 are subject to a couple more taxes.  Taxes on investment income will go up 3.8% and Medicaid taxes will go up .9%.  Those who have "Cadillac Health Care Plans" are subject to additional taxes too.  Since people who have this plan are mostly executives of big corporations, it's probably safe to assume they are in this category.  
According to the most recent data from the IRS, only 1.2% of Americans make more than $200,000.  
Fake Bakers:
According the American Academy of Dermatology, 32% of Americans has visited a tanning salon in the last year.  As of 2010, a 10% tax has been levied on indoor tanning.  That means for every $10 tan, $1 goes towards Obamacare.  
Despite the tax increase, there hasn’t been a noticeable drop in tanners.  Because of the apparent inelastic demand that is inherent with tanning, we could assume that we are 1.2 trillion tans away from balancing the budget for 2012.  
Patricia Krentcil could almost balance the budget on her own.
Interestingly enough, these three groups combined add up to...49.2%, about half of the population.  So if you are an insured natural tanner making less than $200,000, this legislation will not affect your life.
However, if you are grabbing your ankles as an uninsured tanner making more than $200,000, make sure you have a good proctologist.  

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