Research Briefing

ObamaCare’s “Devastating” Impacts

LOCAL JOB CREATORS FEAR “DEVASTATING” IMPACTS ON TAXPAYERS …

Owner Of North Carolina Tanning Salon Calls Tax “Pretty Devastating In All Honesty.” “‘It’s going to be pretty devastating, in all honesty,’ said Paula Poole, owner of Mimi’s Tanning Shak in Knightdale, near Raleigh. At Mimi’s, a 10 percent tax would amount to $4 a month on a monthly package of $40 for unlimited sessions. Poole said she can’t afford to absorb the tax herself by lowering her prices so that customers don’t end up paying more.” (David Ranii & Steve Lyttle, “Tanning Salon Tax May Turn Some Browners Blue,” The Charlotte Observer, 4/13/10)

• Another North Carolina Tanning Salon Owner Worries She Won’t Be Able To “Afford The Payroll.” “But Jill Donovan, owner of six Jill’s Beach salons in the Raleigh area, is worried. ‘If we don’t have the customers, if we don’t have the sales, we can’t afford the payroll,’ she said.” (David Ranii & Steve Lyttle, “Tanning Salon Tax May Turn Some Browners Blue,” The Charlotte Observer, 4/13/10)

Ohio Woman Says ObamaCare’s Tanning Tax Would Hit Middle Class Because “It’s The Working People That Will Have To Pay For It, No Matter What.” “If anything, Snyder, 53, of 106 Lee Ave., Marietta, said, the measure is more of a tax on the middle class. ‘It’s supposed to tax (the salon owners), which will then be passed onto us. It’s the working people that will have to pay for it, no matter what,’ she said. ‘They say it’s a sin tax, but I just wish they’d leave us alone.’” (Justin McIntosh, “Tanning Tax Burns Some,” Marietta Times, 4/12/10)

WHILE BUSINESSES, PATIENTS AND DOCTORS NATIONWIDE WILL BE HURT

Government-Run Health Care Bill Has Onerous New Business Tax Reporting Requirements. “Tucked away in just 23 lines of Section 9006 of the Healthcare reform bill be a dramatic change in the 1099 reporting requirements.  No longer will corporations or payments for merchandise be exempt 1099 reporting… There is no doubt this will be an administrative nightmare for many businesses in the first year or two.  Taxpayer identification numbers need to be collected for all vendors.  Have a large business related meal at a restaurant, this will need to be reported on a 1099.  Spend a week in a hotel in Waco Texas, you will need to send a 1099.” (Jaime Downey, “Healthcare Reform Bill Expands Business Tax Reporting,” The Boston Globe’s “Managing Your Money” Blog, 4/12/10)

Contradictory Provisions Could “Undermine One Of Its Central” Aims By Charging Sick People More. “The new health care law promises to extend coverage to millions of Americans and to cut costs by cultivating healthy habits and preventive care. But could its emphasis on wellness undermine one of its central achievements: putting an end to the practice of charging sick people more for health insurance?” (Roni Caryn Rabin, “Could Health Overhaul Incentives Hurt Some?” The New York Times, 4/13/10)

Doctor Shortage Will Worsen, Which Will Lead To “More-Limited Access To Health Care And Longer Wait Times For Patients.” “The new federal health-care law has raised the stakes for hospitals and schools already scrambling to train more doctors. Experts warn there won’t be enough doctors to treat the millions of people newly insured under the law. At current graduation and training rates, the nation could face a shortage of as many as 150,000 doctors in the next 15 years, according to the Association of American Medical Colleges….The greatest demand will be for primary-care physicians. … A shortage of primary-care and other physicians could mean more-limited access to health care and longer wait times for patients.” (Suzanne Sataline & Shirley Wang, “Medical Schools Can’t Keep Up,” The Wall Street Journal, 4/12/10)