DALLAS, TX: It comes as no surprise that CBO officials now estimate that nearly 6 million Americans - most in the middle class - will have to pay an average penalty of about $1,200 starting in 2014 for failing to obtain health insurance, a 50 percent increase than previously estimated.
"Since the legislation was passed, all we've learned is how flawed many of the estimates were and we're likely to find even more errors as we move closer to full implementation," said IPI resident scholar Dr. Merrill Matthews.
Matthews said the health care legislation is not only one of the largest tax increases in history, but also is very regressive and an even greater burden on working families.
The Affordable Care Act is already filled with at least 20 new taxes, including:
- 3.8 percent surtax tax on investment income and a 0.9 percent surtax on Medicare taxes for individuals making more than $200,000 and families making more than $250,000;
- 10 percent tax on tanning services and a 2.3 percent excise tax on medical equipment;
- 40 percent tax on comprehensive health coverage that costs more than the designated cap; and
- New taxes that apply to Flexible Savings Accounts and Health Savings Accounts.
"The biggest problem is penalizing people-an estimated $1,200 per family-for not being able to afford health insurance," said Matthews.
This is one more indication that almost all the numbers the president used to sell his health care plan are grossly inaccurate, he said. "Would Democrats have supported the legislation if they knew 50 percent more Americans would have to pay the penalty?"
Dr. Merrill Matthews is resident scholar with the Institute for Policy Innovation, an independent, nonprofit public policy organization based in Dallas, Texas. He is available for interview by contacting Erin Humiston at (972) 874-5139, or erin@ipi.org.