“Let me tell you how it will be, It’s one for you, nineteen for me.” – Taxman, The Beatles

Well, Obama’s wasting no time getting ready to fund his monstrosity known as Obamacare.

Reuters.com has the story:

The Internal Revenue Service has released new rules for investment income taxes on capital gains and dividends earned by high-income individuals that passed Congress as part of the 2010 healthcare reform law.

The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.

The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.

The tax applies to a broad range of investment securities ranging from stocks and bonds to commodity securities and specialized derivatives.

The 159 pages of rules spell out when the tax applies to trusts and annuities, as well as to individual securities traders.

Released late on Friday, the new regulations include a 0.9 percent healthcare tax on wages for high-income individuals.

Both sets of rules will be published on Wednesday in the Federal Register.

The proposed rules are effective starting January 1. Before making the rules final, the IRS will take public comments and hold hearings in April.

Together, the two taxes are estimated to raise $317.7 billion over 10 years, according to a Joint Committee on Taxation analysis released in June.

To illustrate when the tax applies, the IRS offered an example of a taxpayer filing as a single individual who makes $180,000 in wage income plus $90,000 from investment income. The individual’s modified adjusted gross income is $270,000.

The 3.8 percent tax applies to the $70,000, and the individual would pay $2,660 in surtaxes, the IRS said.

The IRS plans to release a new form for taxpayers to fill out for this tax when filing 2013 returns.

Here is a brief overview of the timeline for the implementation of Obamacare, from a pdf prepared by the House Ways and Means and Energy and Commerce Committees on April 2, 2010.

2013

Payments to Primary Care Physicians. Requires that Medicaid payment rates to primary care physicians for furnishing primary care services be no less than 100% of Medicare payment rates in 2013 and 2014.

Administrative Simplification. Health plans must adopt and implement uniform standards and business rules for the electronic exchange of health information to reduce paperwork and administrative burdens and costs.

Encouraging Provider Collaboration. Establishes a national pilot program on payment bundling

Limiting Health Flexible Savings Account Contributions.

Increased Threshold for Claiming Itemized Deduction for Medical Expenses.

Medical device excise tax. Establishes a 2.3 percent excise tax on the sale of a medical device by a manufacturer or importer.

Limiting Executive Compensation.

Fee for patient-centered outcomes research.

2014

Reforming Health Insurance Regulations.

Eliminating Annual Limits.

Ensuring Coverage for Individuals Participating in Clinical Trials.

Establishing Health Insurance Exchanges. Opens health insurance Exchanges in each State to individuals and small employers. This new venue will enable people to comparison shop for standardized health packages.

Local hack politicians are lining up for jobs right now.

Providing Health Care Tax Credits.

Ensuring Choice through Free Choice Vouchers.

Promoting Individual Responsibility.

Small Business Tax Credit.

Quality Reporting for Certain Providers.

Health Insurance Provider Fee. Imposes an annual, non-deductible fee on the health insurance sector allocated across the industry according to market share.

2015

Continuing Innovation and Lower Health Costs. Establishes an Independent Payment Advisory Board to develop and submit proposals to Congress and the private sector aimed at extending the solvency of Medicare, lowering health care costs, improving health outcomes for patients, promoting quality and efficiency, and expanding access to evidence-based care.

Paying Physicians Based on Value Not Volume. Creates a physician value-based payment program to promote increased quality of care for Medicare beneficiaries.

2018

Excise tax on high cost employer-provided health plans becomes effective. Tax is on the cost of coverage in excess of $27,500 (family coverage) and $10,200 (single coverage), increased to $30,950 (family) and $11,850

As I noted earlier,the “Healthcare Exchanges” are supposed to be in place by 2012. Several states are refusing to co-operate. However, if they don’t, the president plans on punishing them,  as newsmax.com reports:

Residents of states that refuse to set up health insurance exchanges under Obamacare are set to be hit with higher premiums under new rules announced by the Health and Human Services Department.

Insurance companies will be charged 3.5 percent of any premiums they sell through the federal exchanges, the department announced Friday.

And insurers are likely to pass that surcharge on to clients, leading to higher premiums.

The only states to be affected are those that refuse to set up their own exchanges because of opposition to the Patient Protection and Affordable Care Act. They are almost certain to be those under Republican control. In those states, HHS will set up the exchanges.

GOP governors are taking a hard line against implementing any part of the healthcare law, which will mean insurers in their states will need to pay the monthly fee, The Hill reports.

Arizona Gov. Jan Brewer announced this week that her state will not set up an exchange, calling the proposal “too expensive and too risky.” Her decision brings the total of states refusing to comply with the act’s provisions up to 17.

The exchanges were supposed to be up and running in all states by 2014. HHS plans to charge insurers 3.5 percent of the premiums for each plan they sell through the federal exchange.

There are still some states that haven’t yet decided whether to set up their own exchanges or use the federal exchange option, so it’s not yet known how much money the HHS will collect from insurance companies. In addition, HHS said it might change the user fees later on as more people enroll through the exchanges.

But exchanges that don’t attract enough insurers may make the companies carry larger percentages of unhealthy and thus expensive, patients, making them appeal even less to customers.

Why didn’t Obama and his minions try capitalism, instead of Marxism, as a solution for the high price of Health Insurance? All they had to do was rule that all Health Insurance Companies have to be available for consumers to purchase in every state.

Yes, Scooter. All 57 of them.

That would force them to lower their rates, in order to be competitive.

Affordable health insurance mandated by the free market system.

Imagine that. Sounds like an American Solution, doesn’t it?

Capitalism works. Marxism never has.

Until He Comes,

KJ