The Blog

‘The Largest Set of Tax Law Changes in 20 Years’

2:37 PM, Jun 22, 2012 • By JEFFREY H. ANDERSON
Widget tooltip
Single Page Print Larger Text Smaller Text Alerts

A new report from the Treasury Department says that Obamacare “represents the largest set of tax law changes in more than 20 years and affects millions of taxpayers.” As the report notes, Obamacare’s “new taxes, fees, and penalties account for approximately $438 billion.” But, really, it’s even worse than that.   

IRS logo

IRS logo

That’s because, according to the official estimate that the Treasury Department sites, that $438 billion in new taxes, fees, and penalties on Americans and American businesses is just the tally through 2019 — at which point Obamacare would really have been in effect for only six years (2014-19), not the ten years that are the norm for government scoring.  On an annual basis, Obamacare’s taxes, fees, and penalties (according to that same official estimate) would increase from $48 billion in 2014 to $88 billion in 2019, rising between 9 and 26 percent per year (depending upon the year) — with no end in sight.

On a positive note, however, this would allow Obamacare to promote job growth in at least one area.  As the Treasury report conveys,

“As of May 2, 2011, the IRS reported that it had hired 495 new employees and had plans to hire an additional 87 new employees by the end of September 2011 to assist in implementing the provisions associated with the ACA [Obamacare]. Actual ACA spending for Fiscal Year 2011 included 582 full-time equivalents (FTE)….The IRS projected its Fiscal Years 2012 and 2013 ACA staffing needs to be 1,278 FTEs and 859 FTEs, respectively.”

The report adds that the IRS “has not projected staffing needs beyond Fiscal Year 2013.”  But if Obamacare isn’t repealed (or struck down), prospects for employment in the IRS sector would presumably remain strong for the foreseeable future.

Recent Blog Posts