Thursday, July 11, 2019

Gavin got his Obamacare taxes

California Legislature Votes to Restore Tax on People Without Health Insurance
The California Legislature voted Monday [June 24] to tax people who refuse to buy health insurance, bringing back a key part of former President Barack Obama’s health care law in the country’s most populous state after it was eliminated by Republicans in Congress.
The tax now heads to Democratic Gov. Gavin Newsom, who proposed a similar plan in January — an indication he will likely approve it.
The federal Affordable Care Act required everyone to buy health insurance or pay a penalty. The U.S. Supreme Court upheld the law, ruling the penalty was a tax.
In 2017, Republicans in Congress eliminated the penalty — beginning this year — as part of an overhaul of the federal tax code.
The bill passed by Democrats in California would reinstate the tax, effective Jan. 1. No Republicans voted for it. One Democrat in the state Assembly — Rudy Salas Jr. — voted against it.
One down, about three to go on his tax hikes.  The logic seems a bit unusual:
That means a family of four earning up to $150,000 a year would be eligible [for subsidies] .
“These new subsidies will impact almost 1 million Californians and help them get the health care access that they deserve,” said Democratic Assemblyman Phil Ting of San Francisco.
Republican state Sen. John Moorlach said in 2014 that 82% of Californians who paid the penalty for not having health insurance had taxable incomes of $50,000 or less.
“This trailer bill will take money away from people making $30,000 to $50,000 a year and give it to people making between $75,000 and $130,000 a year,” GOP Assemblyman Jay Obernolte said. “That makes no sense.”
Perhaps no sense applies. We shall see. I agree that the middle class pays the bills here, they are the largest group of total money available to Gavin. But we will also get new wage settings and a reorganization of the labor markets around the $30,000 cutoff.  We will see a bigger gap appear in the middle class earnings box. 

We will also see a bigger tax rebellion as Gavin picks us  off one by one with his tax hikes.  This bodes ill for the Prop 13 revision, I think that fails. The more likely outcome is a resurgence of the massive tax rebellion in the 70s, hitting us in the 2020 election.

No comments: