Surprise: Democrat Health Care Bill Passed Last Night Doesn’t Index For Inflation

Proof • November 9, 2009

Why is that important? Because it results in tax-bracket creep.
Inflation is when, for various reason, the purchasing power of your money decreases. The amount of money you earn might stay the same, but the amount of stuff you can buy with that money decreases. Often taxes are indexed for inflation so that the rate your taxed stays relative to the real value of your money. But the Democrat health care bill passed last night ends that, at least partially:

All of those twentysomethings who voted for Barack Obama last year are about to experience the change they haven’t been waiting for: the return of income tax bracket creep. Buried in Nancy Pelosi’s health-care bill is a provision that will partially repeal tax indexing for inflation, meaning that as their earnings rise over a lifetime these youngsters can look forward to paying higher rates even if their income gains aren’t real.
In order to raise enough money to make their plan look like it won’t add to the deficit, House Democrats have deliberately not indexed two main tax features of their plan: the $500,000 threshold for the 5.4-percentage-point income tax surcharge; and the payroll level at which small businesses must pay a new 8% tax penalty for not offering health insurance.

So why is this important? Because it essentially means that what you pay in taxes will gradually go up over time without the politicians actually having to pass tax hikes and suffer the political consequences of them.
Sneaky? Dishonest? Fundamentally wrong for the economic health of our country? All that and more.

Tags: Asshats, Domestic Issues, Politics

http://Array sayanything-48

With Trillions of new printed USD currency flooding the market, more and more countries turning their own cash loose for other holdings, and a government that lies, manipulates, and acts without the rules that add stability to the value of currency…

Two words: We’re Screwed!

Inflation??? LOL! Unless Geitner and Bernaki are next to God-like with their timing, we’ll dwarf Zimbabwe’s inflation… I don’t think “Hyper-Inflation” is a strong enough word.
AKA WOOF

Pelosi’s breasts have no relationship to economic inflation.

“the Pelosi Puppies are going to pay for this bill with their seats.”
gary gulrud

Good post.

With all the talk about ‘soaking the evil rich’ the poor and young(mostly poor-some temporarily) miss the truth about marginal tax rates. The middle and upper classes complain they’re not invested in the system.

Take the sin taxes, gas taxes, sales taxes, fees for licenses, permits, on and on and on. Tax Prof says NYC they’ll reach 80% for the wealthy, but they’re still rapacious for everyone.
I don’t like today’s GOP

Those republicans should have gotten involved and fixed it instead of trying to kill it.
sayanything-106

STFU Dino. you have no idea what you are talking about.
I don’t like today’s GOP

There were no common sense Republican amendments offered. They were all political gamesmanship and rhetoric.

This passive aggressive republican quest to be martyrs isn’t going to work.

So STFU, ha ha ha, I’m clever like ND Boob, er goon, er whatever
sayanything-106

The truth is the Pelosi Puppies are going to pay for this bill with their seats.
Ozcar

My Rep, yes a D, voted for this. It’s now my mission to see he never holds another elected office for the rest of his life.

EOTIS
brain trust

Once hyper-inflation kicks in, thanks to our government’s thirst for spending and printing money, our wages will all have to go up to cover our living expenses. We will probably all find ourselves subject to that tax surcharge.
brain trust

Democratic leadership should have known that. Now we have all of these dummies that voted for it, ours included, that are hung out to dry at the next election. A monkey could probably beat Earl in 2010.
sayanything-106

Word is that this bill is dead on arrival in the senate.
http://sayanythingblog.com robport

Oh, right. So this little dirty trick shoved into the bill by Democrats is all the fault of Republicans.

Maybe Democrats should have let people, you know, read the finalized version of the bill before it passed.

Or maybe they should just admit that this bill is awful and kill it.
sayanything-4808

You are probably the only person outside an anatomical specialist who even thinks Pelosi has any breasts.
sayanything-7743

The Republicans could not get involved; the Democrats kept locking them out of the process. True, the Democrats kept accusing the Republicans of not participating, but every time they would proposed a common sense amendment, the Democrats would kill it. No, this disastrous legislation is solely owned by little, Barri Ovomit, the boy-child president, and Nancy Pelosi. Donâ€™t blame the Republicans for this mess.
sayanything-4416

I’m not sure a conservative has any room to comment on what is “fundamentally wrong for the economic health of our country.”

You don’t even believe in a country much less have a clue about what makes the economy work. Your ideas have led to disaster.
sayanything-4416

Even if the savages manage to kill reform, it will come back even harder next time.

You will see a single-payer system within 10 years of this doesn’t pass. Mark my words.

That camel’s nose is way under that tent.

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Surprise: Democrat Health Care Bill Passed Last Night Doesn’t Index For Inflation

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