FOR IMMEDIATE RELEASE
July 17, 2014
Contact: Allison Moore 502-618-1372
LOUISVILLE – Team Mitch today released the following statement and background information highlighting Alison Lundergan Grimes’ Obamacare implementation will hurt middle class Kentuckians.
“As Barack Obama’s Kentucky candidate, Alison Lundergan Grimes fully supports the implementation of Obamacare and the devastating tax hikes it will have on middle class Kentuckians. Sen. McConnell, on the other hand, has been a leading opponent of Obamacare and fought hard against President Obama’s anti-Kentucky liberal policy agenda,” said Team Mitch spokeswoman Allison Moore.
Obamacare Taxes Will Begin Hurting The Middle Class
Obamacare Taxes Are Going To “Begin Hitting A Lot More Taxpayers. “And Obamacare taxes aimed at the well-to-do will begin hitting a lot more taxpayers. Even if Congress does nothing, rising incomes, inflation and other factors will quietly push up taxes over the next 25 years well beyond historical averages, the Congressional Budget Office reported on Tuesday.” (Brian Faler, “CBO: Everyone’s taxes will go up quietly,” Politico, 7/16/14)
Obamacare Taxes On Investments Will “Gradually” Start Affecting People Below The Income Threshold Specified In The Law. “The health care law is financed in part by a 3.8 percent “net investment tax” on the capital gains, dividends, interest and other investments claimed by couples earning more than $250,000. Lawmakers did not index those particular provisions for inflation so more people will gradually become subject to them, because of increasing incomes as well as rising prices. (Brian Faler, “CBO: Everyone’s taxes will go up quietly,” Politico, 7/16/14)
Consumers Who Switch To A Lower Cost Insurance Coverage To Avoid Obamacare Taxes Will Still See Higher Taxes. “The Affordable Care Act also imposed a 40 percent excise tax on gold-plated insurance policies scheduled to take effect in 2018. That tax is linked to changes in overall consumer prices, though CBO projects health care costs will grow faster than that over the long term. And even if people switch to lower-cost coverage to avoid that tax, they’ll still get hit with other levies. That’s because CBO says their total compensation is unlikely to change — they’ll simply receive more of their pay in the form of wages rather than health care benefits, which means they’ll pay higher income and payroll taxes. “Whether policyholders decided to pay the excise tax or to avoid it by switching to lower-cost plans, total tax revenues would ultimately rise,” the report said. (Brian Faler, “CBO: Everyone’s taxes will go up quietly,” Politico, 7/16/14)