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News today the White House is pushing ahead with the president's health care a lot.
Pumping an extra 500 million dollars into the IRS to help -- implement Obama care and of course the taxes that go along with it.
The individual mandate is under review by the US Supreme Court as you know and a whole lot could be at risk at the mandate gets thrown out so what would happen to them.
Break down Pete -- executive vice president of the National Taxpayers Union.
So what do you make of this whole story we you know -- raising taxes were giving it to the higher S and yet we may not even have.
Well even if the Supreme Court decides to start -- single law and saying.
You can't have the individual mandate certain taxes under the health care law would go into effect -- -- -- big one being the surtax is on earned and so called unearned in com.
On wealthier earners the big deal with that of course is that.
The income thresholds 200000.
For singles 250000.
For married it's that is not adjusted for inflation year after year.
Meaning what you're setting up.
Is an Alternative Minimum Tax park to.
He has capital gains dividend taxes that are through the roof once their fully implement I think people would be shocked to see.
What they're gonna be paying and then there's the tax if you don't get coverage how much have to pay for that.
Second in that the later years goes into the thousands of dollars as single household could end up paying.
More than 2000 every year for that -- it's a lot of taxes but I have to tell you.
I was shocked to say that there's an implementation.
Under obamacare at least a billion dollars being set aside Republicans calling it a slush fund.
Well I would say it is somewhat of a slush fund it was obviously set aside so that.
The annual appropriations.
Process couldn't necessarily derail some of the IRS's own efforts and they're probably saying well if we can't derail what.
That means the train will leave the station -- and I will start flowing and the federal government will have more money to play way and make no mistake.
Again certain taxes will go into effect regardless.
Of whether the Supreme Court overturns an individual mandate portion or not they would have to strike down on the whole law before things like the excise tax on medical devices that tanning tax.
The new contribution limits on flexible spending accounts none of those are really tie out to the individual mandate.
And the list goes on -- on -- some 28 new or increase taxes on families and small businesses.
Generated 400 billion dollars with the taxes that obamacare creates and of course we know within -- because nobody -- -- Yes as you start and could drill into this.
And the cost of obamacare and -- implementation.
It's been a range of cost adjustments five billion maybe double that -- -- ten billion.
What's likely realist.
I think between five and seven billion is realistic.
They're only two components that the IRS has made requests so far for more employees that's helping people with the new tax credit.
For lower income individuals to help them purchase health insurance.
Plus about another 300 employees are so about a thousand total for implementing the even.
Medical device tax and others that doesn't count a lot of the individual mandate requirements.
That are going to necessitated a lot more employees and I think when all is said and done especially with the low income credits they're going to find real problems with improper payments -- are going to need a lot more of an oversight workforce -- their admitting that they want to hire out isn't that where a lot of the Friday is in tax collections and isn't tax credits.
Yes the earned income credit alone the big program for the war has had improper payment rates of between twenty and 25%.
In some years that's huge -- another one that's.
Yes you may very well see a similar rate.
To Begin with -- this program and the big sleeper is the curtailment of the medical expense deduction you've got ten million people who claim that.
Of them make less than 200000.
A year it's gonna get tougher for them to -- that expense threshold to Begin deducting the costs that's gonna start.
Happens -- next time period here so originally that level currently right now is that what 101000.
Well what you have to prove is seven and a half percent of your adjusted gross sorry come attributable to medical expenses then why don't you start deducting and now the hurdles stunning to change to 10%.
That's going to make it tough.
For several million of those ten million people to get any valuable deduction -- -- and of course we know that medical expenses is one of the first things that throws people in the bankruptcy.
If if you -- to pay.
And that was one small thing the government can do.
Now those folks -- keep -- thanks for coming on -- always a pleasure to have you one question after.