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Medical Service Is Not ‘Free’

POSTED July 25, 2012 12:46 p.m.

Dear Editor,

David Sayen, (‘More On Medicare’ July 18 issue) constantly makes the reference in the column that the Medicare medical service to patients is “free.” The Affordable Care Act, otherwise known as Obama Care, must be paid for by an estimated $503 billion in new taxes. Since the Act became law in 2010, $83 billion of the $503 billion already has been collected and is providing that “free” medical service mentioned repeatedly throughout Mr. Sayen’s column. While this law has been challenged in the courts since its passage, Secretary Sebelius has been implementing it with all due haste unchecked by Congress or the Courts. In 2010, $32 billion in taxes was collected on exclusion of unprocessed fuels credit, increase in corporate taxes on business reducing their tax liabilities and 10 percent excise tax on tanning services. In 2011, $33 billion in taxes was collected on manufacturers and importers of branded drugs, on reducing the number of medical products with funds in Health Savings Accounts and increasing the penalty to 20 percent on products purchased in Health Savings Accounts. Thus far in 2012, another $18 billion in taxes is in the process of being collected on higher corporate taxes by stricter enforcement. In 2013, the newly hired 2500 IRS Agents, will start collecting $210 billion in taxes at the increase rate of 3.8 percent on the Health Insurance portion of payroll taxes and further applying the same 3.8 percent Health Insurance tax to investments such as dividends, rents, capital gains and royalties. Unfortunately, even the $503 billion tax dollars scheduled to be collected under the Obama Care is not enough to save Medicare even as it is today. The law specifies health “exchanges” be set up in every state with intent on dispensing measured medical service; in other words bureaucrats will determine your doctor, your medicine, your treatment, the required payment for said treatment and the availability of the treatment. This is a partial list of the 18 new taxes levied under this law so it is not free by any measure.

Brewster Burns

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