Last Thursday, the Supreme Court upheld Obamacare under Congresses’ taxing power. This has many Americans wondering: How will Obamacare affect my bottom line?
To help answer that question, The Wall Street Journal‘s senior economics writer, Stephen Moore, has conducted some interesting research about the tax’s effect on the average American.
During a recent interview with Fox News, Moore revealed that over 75 percent of the cost of Obamacare will fall on the backs of families that make less than $120,000 per year, making for “a big punch in the stomach to middle class families,” according to Moore.
What’s more, the tax’s total burden for those not purchasing health insurance will increase with time. For a single adult, the average tax penalty will cost $95 in 2014 and grow to $695 in 2016. For a family, this burden will increase from $285 in 2014 to $2,085 in 2016.
Further, under Obamacare, insurance costs are expected to continue to increase for those purchasing health insurance. Already, the cost of insurance increased by 8-10 percent the first year, and if that trend continues, cost increases would range from $300-400 per year.
The Obama administration categorizes this tax as a penalty for freeloaders on the system. However, in reality, this “penalty” is a tax, it will increase the overall cost of insurance, and it places an enormous financial burden on the middle class.
According to Moore, “if it looks like a duck, quacks like a duck, it’s a duck.” And unfortunately for Americans, this is a very expensive duck.
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