Recent News - NY GOP - Higher Taxes "Fine" with Senator Gillibrand

Recent News - NY GOP

ICYMI - Higher Taxes "Fine" with Senator Gillibrand

"I thought it was fine to say it was under the Congress's ability to tax as their basis and rationale."

New York, New York -  In the wake of last Friday's disappointing employment report and yesterday's push by President Obama to once again raise taxes there is no relief in sight for job creators and hardworking middle class New York families because higher taxes are apparently just "fine" with Senator Gillibrand.

In a meeting with the editorial board of the Auburnpub.com, The Citizen, Senator Gillibrand said of the Supreme Court's decision on Obamacare: "I thought the bill was constitutional, even under the Commerce Clause, particularly since we ask people to buy car insurance if they're going to drive on our national highways and roads. I felt there was plenty of arguments under the Commerce Clause. That being said, I thought it was fine to say it was under the Congress's ability to tax as their basis and rationale."

US Senate Candidate Wendy Long said, "Senator Gillibrand is wrong on the law, wrong on the policy, wrond on taxes and wrong for New Yorkers.  Not only does she think the Supreme Court's new, invented basis for Congress to 'tax' is 'fine,' she is incorrect that our federal government forces people to buy auto insurance; the states are the ones that require drivers to purchase auto insurance, not the federal government under the Commerce Clause. And her stance in favor of Obamacare means that she approves a whole series of onerous new taxes on New Yorkers under the bill." 

Among the higher taxes that Gillibrand considers "fine": 

• A "penalty" tax for those who don't buy health insurance. This will phase in from 2014-2016. It will range from $695 per person to about $4,700 per person, depending on your income. 

• A 3.8% surtax on "investment income" when your adjusted gross income is more than $200,000 ($250,000 for joint-filers). What is "investment income?" Dividends, interest, rent, capital gains, annuities, house sales, partnerships, etc. Taxes on dividends will rise from 15% to 18.8%--if Congress extends the Bush tax cuts. If Congress does not extend the Bush tax cuts, taxes on dividends will rise from 15% to a shocking 43.8%.

• A 0.9% surtax on Medicare taxes for those making $200,000 or more ($250,000 joint). You already pay Medicare tax of 1.45%, and your employer pays another 1.45% for you (unless you're self-employed, in which case you pay the whole 2.9% yourself). Next year, your Medicare bill will be 2.35%. 

• Flexible Spending Account contributions will be capped at $2,500. Currently, there is no tax-related limit on how much you can set aside pre-tax to pay for medical expenses. Next year, there will be. If you have been socking away, say, $10,000 in your FSA to pay medical bills, you'll have to cut that to $2,500. (ATR.org)

• The itemized-deduction hurdle for medical expenses is going up to $10,000. Right now, any medical expenses over $7,500 per year are deductible. Next year, that hurdle will be $10,000. 

• The penalty on non-medical withdrawals from Healthcare Savings Accounts is now 20% instead of 10%. That's twice the penalty that applies to annuities, IRAs, and other tax-free vehicles. 

• A tax of 10% on indoor tanning services. This has been in place for two years, since the summer of 2010. 

• A 40% tax on "Cadillac Health Care Plans" starting in 2018.Those whose employers pay for all or most of comprehensive healthcare plans (costing $10,200 for an individual or $27,500 for families) will have to pay a 40% tax on the amount their employer pays. The 2018 start date is political payback to unions, which often have comprehensive plans. 

• A"Medicine Cabinet Tax" that eliminates the ability to pay for over-the-counter medicines from a pre-tax Flexible Spending Account. This started in January 2011. 

• A tax on medical devices costing more than $100. Starting in 2013, medical device manufacturers will have to pay a 2.3% excise tax on medical equipment. This will hurt New York's thriving medical device industry killing jobs for middle class families.

Long concluded, "As New York's United States Senator I will work as part of the reconciliation process to repeal and replace Obamacare - Senator Gillibrand won't."

See original work for more on this and other stories.