A post at Mother Jones has been making the rounds on Facebook with the table to the left as the main point. To quote author Kevin Drum, “Democrats have long insisted that Obamacare’s penalty for not buying health insurance isn’t a tax, but on Thursday the Supreme Court upheld it on the grounds that it was a tax. J’accuse! Or, as America’s Bard of the Frozen North tweeted, “Obama lies, freedom dies.” This is so stupid it hurts.”
Yes Kevin, I agree. Disagreeing with the fact that the SCOTUS saved the bill on the basis that it is a tax is stupid indeed. The source of Drum’s angst is a Forbes articlethat says the following:
“And if both the premium and the penalty are considered a tax, the mandate becomes the largest tax increase in U.S. history. And that doesn’t include all of the other taxes imposed by the legislation.”
However, Drum does not provide the quote, nor does he properly analyze it. He omits the part in bold. He omits the numbers relating to the premium. His analysis is based on just the financial impact of the penalty, which I think is a mistake.
But let’s ignore that glaring mathematical error for the time being and stick with his main premise. Drum created this table to prove a point, to clearly show that Republicans are stupid for claiming that the tax is the largest tax in history. (The data came from this Treasury Department report.) If you compare the impact of Obamacare to previous large tax hits as a percentage of GDP, Drum is correct, this is not the largest tax increase in history.
But, if you look at the raw dollars of the deal, again using Drum’s numbers, the cost of Obamacare is $71.18 billion dollars. (0.49% x 2010 GDP of $14.526B). That would make it the largest tax increase ever. The second highest dollar amount in the list? Clinton’s 1993 tax increase of $33.34 billion, which is less than half of the Obama tax increase. Third would be GHW Bush and fourth Reagan.
But let’s take this further because this is not just about bashing flawed logic. It is about exposing the truth. There have been larger increases than Obamacare, and some of them were passed by Republican presidents. I think it is important to note that the vast majority of massive tax increases took place during Democratic leadership. Liberals are free t0 whine about how Conservatives hate this massively expensive government overreach. But let’s use this topic as yet another opportunity to point out how the left wants bigger government spending more money, as proven by their track record of instituting the largest taxes in our history.
The following charts should provide more transparency on the topic.
Under ObamaCare so many people have waivers or exemptions that the weight of supporting them will be impossible.
No one (most filers) who gets the Earned Income Tax Credit even has to worry about getting either coverage OR paying any penalty!
Then what about all of the people who do not bother to file at all?
They will not get coverage OR pay a penalty either.
Only the minority; people who are already Taxed Enough Already will be liable.
In So Cal we have a parallel situation with cars not registered or drivers not licensed.
If you seem illegal or poor, you are exempt.
If it looks like you have two dimes to rub together,you get the book thrown at you!
ObamaCare writ small.
Is Obamacare The Largest Tax Ever?
Is this the silliest question republicans have asked, to date?
Perhaps, Jason, only silly that it’s still shooting over your head – even after given the explanations that it’s the entire tax consequences of the bill en toto. Thus the economic repercussions of it not being struck down. If the electorate does it’s job, responding this tax increase in this climate, heads will roll in November.
This health care bill?? Clear a path through the forest of paper…this Bill has everything to do with Control….Tax? Penalty? Mandate? does it matter? Seriously this is like luring children with candy and the ‘candy’ being the ‘notion’ of [free] health care…This bill is going to kill the Middle Class….anyone who thinks differently is a fool.
It does ‘not matter’ to those who tell us “we have to pass the bill so we will know whats in it” … Now, is this the stupidest statement ever made by a Democrat?? [Pelosi the progressive] and ilk….the head witch who “claims” via a CON she doesn’t know what’s in this bill – are you kidding me??
They ALL know… and, they know WE know….which is why they are shoving it down our throats…. only, the smartest among us can smell a rat and we know this is a ‘con job’ of major proportions…sadly we have a lot of morons in this country – by design…
@Jason: I agree, yes is the answer. If it looks like it and smells like it!!
Yes it is a tax and yes it’s a bad bill that needs to be dumped ASAP!!
This is called ‘spin’:
“… if you look at the raw dollars of the deal, again using Drum’s numbers, the cost of Obamacare is $71.18 billion dollars. (0.49% x 2010 GDP of $14.526B)”
Conservatives twist things in such a way that they seem to be consistent with their position. If you’re going to consider the entire cost of the AHCA as a tax, I guess you’re correct.
@Liberal1 (objectivity):
That isn’t what has been done here, Lib1, and your statement shows the depth of your ignorance on the subject.