Democrats and former President Barack Obama liked to pitch that they were fighting for the little people, that they had ‘hope and change’ for the poor and the middle class.
But looking at the numbers reveals that that is far from true.
And nowhere is it better shown than in Obama’s namesake legislation, Obamacare.
A new report shows that Obama is actually taking money out of the pockets of the average American through the individual mandate.
According to Forbes contributor Ryan Ellis, the individual mandate that is at the center of Obamacare actually hits working-class families the hardest.
“The mandate is a tax which punishes those who can least afford it,” Ellis wrote.
He looked at the breakdown of who actually pays the individual mandate surtax, which is the penalty that kicks in if a person doesn’t purchase government-approved health insurance. What he found was shocking.
It hits the poor and the middle class the hardest.
“According to the IRS, some 6.7 million American families pay Obamacare’s individual mandate surtax, forking over $3 billion annually to Uncle Sam merely for exercising their right not to purchase an unaffordable Obamacare plan,” Ellis wrote.
“It turns out most of these taxpayers are solidly in the middle class. The great majority of them (80 percent) actually make less than $50,000 per year. This is perhaps the most regressive tax we have on the books today.”
Around 5.3 million Americans who earn under $50,000 annually were forced to pay the mandate penalty, which averaged about $340 per person.
So it’s the average citizens who are being whacked the most with a penalty of hundreds of dollars for the ‘privilege’ of not buying expensive insurance that the government demands they buy.
Sounds so “Affordable,” right?
Sen. Steve Daines, a Montana Republican has done a similar analysis and has come to the same conclusions that it burdens those individuals and families who make under $50,000 the most.
The Senate tax reform bill is trying to get rid of the individual mandate. Would that blow up the system if the penalty didn’t exist?
Ellis says no.
“Ending the individual mandate surtax will not cause anyone to lose their health insurance,” he said. “It will merely stop punishing people who choose not to buy expensive insurance with a surtax they cannot afford, either.”
When the Democrats and Obama pitched Obamacare, they downplayed the mandate and the surtax and that harmful effect that it would have.
They claimed the only adverse effects would be to the rich who could well afford it or who wanted a Cadillac plan that they shouldn’t have anyway.
Of course, as with everything else associated with Obamacare, that was all lies, like keeping your plan and keeping your doctor.
It’s time for the individual mandate and the penalty to go.
And if it’s a tax, as Chief Justice John Roberts claimed, sweep it out in tax reform.
Get rid of one more harmful element of the Obama legacy.