President Obama vowed to protect the middle class from new taxes. One way to do this – slippery, these politicians – is to instead tax stuff the middle class is going to buy.
As everyone knows, companies react in two ways to this: they fire people, or they pass the taxes on to buyers in the form of higher prices. That is, unless we’re talking about cases of Dom Perignon, they pass it on to the middle class.
According to the Associated Press, Obamacare is about to assess a $63-per-enrollee “fee” on health plans to help cover people with pre-existing conditions. And guess what. Even the Associated Press is acknowledging the truth, usually claimed by conservatives, that businesses don’t pay taxes: they collect them.
That is, your employer doesn’t want to pay more to insure you, and the fee is likely to be passed on YOU and ME. Whether we make $250K or not.
The new middle class tax – let’s call it what it is – is kindly slated to phase out by 2014. It’s just temporary, you see. Until, of course, Congress decides it likes the new tax and it would be a pain in their political rumps to replace it with something else, and then it doesn’t phase out.