In speaking with people, we find many do not realize the affect the health care laws will have on them. With several tax increases in the act, the President has said the taxes are on the rich—those making more than $250,000. We ask, does a dual income family making more than $250,000, feel rich?
For those earning more than $250,000 married filing jointly, it is possible they may face around a 10% tax increase or more if the Bush-era tax cuts expire, combined with the 3.8% additional tax on unearned income and the additional 0.9% in Medicare payroll tax. Depending on an individual’s tax bracket, this could be $3,000 to $4,000 a year more. While that may not seem like a lot, it is nearly $300 a month. We liken this to when gas prices increase. If you have $10 in your pocket, you can spend it. But if you have to pay that $10 for higher gas prices, you may not spend the $10 on goods and services. We feel $300 a month for a “rich” person will result in the economy contracting.
We have also spoken with several doctors, and have learned that Medicare and Medicaid make it very difficult for them to get paid. We feel we already have a shortage of doctors, and there is little to encourage people to go into medicine. Fewer doctors choose basic care because the more specialized they are, the more they can be paid. Considering the nearly $300,000 in student loans many doctors have, fewer become general practitioners or emergency room doctors. We are also concerned that the health care laws do little to curb the cost of health care. We have known for several years that the baby boomer generation retiring will strain the system. Now with the health care reform, we will be adding nearly 20 million new patients to the system.
Overall we feel tax cuts would help the economy as the money could remain in the public sector where it could be both spent and invested, thus stimulating the economy.