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Many Nevadans are losing their insurance or seeing their premiums increase, but that’s not the end of the bad news from Obamacare. Nevada families will be hit with an estimated nearly $16 billion in new taxes over the next ten years to pay for other people’s health insurance.
Supporters of the Affordable Care Act (also known as “Obamacare”) had promised those with insurance would have already seen their premiums drop by an average of as much as $2,500 per year. Not only have these savings not materialized, as many Nevada families are being forced to pay higher rather than lower premiums, but these same families will be hit with an average of nearly $1,500 more in higher costs each year to cover tax increases required to pay for tax credits and subsidies for those purchasing insurance through the exchanges or taking advantage of the expansions of Medicaid and other taxpayer-funded insurance programs.
The Kaiser Family Foundation recently released a study that indicated 17 million Americans would be eligible for tax credits and subsidies through the exchanges in 2014, including 115,000 Nevadans. The KFF report references a Congressional Budget Office projection that 7 million people will sign up for coverage through the exchanges for 2014, including 6 million who will receive subsidized coverage.
The story untold in the Kaiser study is that that these subsidies are not free. According to the same CBO report, the subsidies to those who purchase insurance through the exchanges or who receive coverage through Obamacare’s expansion of taxpayer-funded programs will cost taxpayers a total of $1.798 trillion over ten years.
Nevada households’ share of these subsidies may be in the area of about $15.8 billion, based upon Census data and assuming current trends in population and household growth continue (see pdf linked below for more information).
While the veracity of the President’s promise that Obamacare would not add to the deficit is yet to be determined the only way in which its tremendous costs can be paid for is through massive increases in taxes.
Obamacare imposes a slew of new taxes, many of which have nothing to do with health care, including levies on prescription drugs, medical devices, health insurance (a new tax on all plans with an additional tax on so-called “Cadillac” insurance plans), indoor tanning, certain types of bio-fuels and many more. It raises Medicare taxes on families making $250,000 or more and, for the first time, imposes Medicare taxes on the proceeds from the sale of primary residences for families whose income, including income from the sale of their primary residence, is over $250,000. It limits tax exemptions for out-of-pocket medical expenses and removes many exemptions for using Health Savings Accounts. In addition, it imposes a tax on individuals who do not purchase health insurance and on companies that do not provide it for their employees.
Tags: Affordable Care Act, health care reform, health insurance exchanges, obamacare, subsidies, taxes
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