BRIDGE VERSUS OBAMACARE

Howard Lipset of Progressive Management and www.thecfo.wordpress.com talks about the Affordable Care Act and how it is going to affect all of us.I love to play Duplicate Bridge.

The game is totally logical. It requires that you be able to count 4 suits of 13 cards each AND 10 points in each suit and after a few plays you can figure out where the rest of the cards lie.

The same thing cannot be said for the Affordable Care Act (ACA). Despite the fact that we were assured that premiums would go down, they are on the rise. Despite the fact that we were assured that if we liked our policy, we could keep our policy, the truth is that the old policies are going to be squeezed out.

Despite the fact that we were assured that we would have better health care, how can one logically say that when they are adding 30 million new patients to the healthcare rolls at the same time they are cutting payments to doctors. An immediate shortage of doctors now will be exacerbated by fewer new doctors entering the field. What is in it for them? Higher tuitions, higher malpractice premiums versus lower reimbursements from the insurance carriers. And those that say this will not happen are not being logical. They are being hopeful.

On top of the additional paperwork mandated by ACA, in 2013 there are additional new taxes. This is a partial list:

  1. A premium tax on fully insured and self-funded group health plans. The tax will fund “Comparative Effectiveness Research Programs”. Do you know what that is? I am guessing this is another government give-a-way to political donors.

  2. Flexible Spending Accounts (FSA) will now be limited to $2,500 per year. Most people had a $5,000 limit before. This is effectively a tax increase as an additional $2,500 is now exposed to taxation.

  3. The threshold for deducting medical expenses rises from 7.5% of Adjusted Gross Income to 10% for those under 65 years of age. By 2016, that waiver will disappear for those 65 or over. Taken into account with the FSA limitation, this is a double hit for those taxpayer’s affected.

  4. The Medicare payroll tax will increase by 0.9% for singles making over $200,000 and marrieds making over $250,000. Remember, this was only to be for millionaires.

  5. There will now be a 3.5% Medicare contribution on Dividends, Interest and Capital Gains from high income taxpayers. For the average person, if you sell your home for a large profit, you will not only pay capital gains tax but this extra 3.5%.

And by linking all of this to your tax return, they are going to feel free to use the Internal Revenue Service as the enforcer. Do you feel comfortable having another government agency that has recently acted in a Fascist manner dealing with your healthcare?

And for those who may object to the term Fascist, Webster’s Online Dictionary defines fascism as “a political philosophy, ….. that exalts nation …..above the individual and that stands for a centralized Autocratic government headed by a Dictatorial leader, severe economic and social regimentation, and forcible suppression of opposition.”

You WILL have the healthcare that the politicians mandate for you, but exclude themselves and their staffs.

Howard Lipset, CPA
Progressive Management, Inc.
(516) 883-2962
lipset@progressivemanage.com

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