As part of a Mothers’ Day weekend defense of his signature legislative accomplishment, President Obama claimed that the law represented the “largest health care tax cut for working families and small businesses in our history.“
His argument was a Hail-Mary effort to redesignate subsidies for individuals to purchase health insurance on government-run exchanges as a “tax cut.” But according to the Congressional Budget Office, these subsidies actually qualify as more than $1 trillion in “Exchange Subsidies and Related SPENDING.” (Emphasis mine.)
Far from being a historic tax cut, Obamacare actually qualifies as one of the largest tax increases in history. It contains roughly $1 trillion in taxes – on insurance plans, medical devices and investment income. And many of the taxes will end up falling on the middle class. The law’s individual mandate, which the Obama administration successful argued was a tax before the U.S. Supreme Court, is projected to hit nearly 5 million Americans with incomes less than $60,000 by 2016.