Obamacare is good for everybody . . . or is it?

 

Obama is the President who cares about the middle class. He passed Obamacare, and it's good for everybody. Or is it?

 

Starting in 2013, a couple of provisions of Obamacare will kick in that economists and health care professionals say will impact middle class families -- especially those with special needs children. These people will have to pay more out of pocket for medical expenses as well as higher taxes (but that can't be . . . Obama said no one making less than $250,000 would have his taxes raised).

 

One of the provisions is that a cap will be placed on pre-tax dollars that can be placed in a medical flexible spending account. People with high medical expenses often deposit enough in their flexible spending accounts to pay for insurance premiums and deductibles. The cap means they will have to pay more tax, because they won't be able to put as much money in the account as they have been. Many employers currently cap the amount at $5,000 -- some have no caps at all, but Obamacare caps it at $2,500. In a 25% bracket, that means an additional $625 in taxes for the average person who uses a flex account.

 

The other provision increases the tax deduction threshold for medical expenses from 7.5% to 10%. So before Obamacare, if a taxpayer had unreimbursed expenses of $9,000 on an income of $100,000, he could take a $1,500 deduction. After Obamacare kicks in, he takes zero deduction.

 

Yes, Obama certainly is making health care more affordable!

 

"Special-needs setback." The Dallas Morning News; November 3, 2012; p. 1D.