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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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    Dec 26, 2013 1:23 PM

    Gasser: A person or event that stimulates a very enthusiastic response:

    Back in the 1930s, jazz musicians were the coolest cats on the planet, (many would argue they still are, except the genre has been infiltrated with a pop sound and softness that belies the grittiness needed to be an arbiter of cool). And, when performing at their peak, it was called "cookin with gas." The term became popular for describing anything that was excellent or sensational. Those with the touch were gassers; everyone else just simply tried but failed.

    Right now, it's safe to say the US economy is heating up, and while it is too early for superlatives like cookin with gas, momentum is pointing in the right direction. But, it's too soon to be cocky or to confuse a resilient economy with proof that economic policies are working. On the contrary, this economy, the greatest ever to operate on the face of the planet, is forging ahead because of the character of our citizens and determination of businesses. Still, this economy could be so much better-- if allowed to cook. Instead, more roadblocks in the form of taxes to support the new healthcare law loom as speed bumps or worse.

    Beginning in the New Year, a $2.00 fee will be leveled on every health plan, in addition to more taxes that could cost each American taxpayer with a $6,000 burden. This isn't the best post- Christmas message to wake- up to, but it's a reality that could become even more detrimental, as enrollment points to a shortfall in participants. Ironically, architects of this monstrosity knew lots of people would opt out of paying and instead fork over fines as part of the individual mandate tax.

    I just think they were lying to themselves or just drinking too much Kool-Aid, when they figured only a certain percentage of young people (being called The Young and Invincible) would see the wisdom in paying thousands of dollars, when the other option is a ninety-five buck fine.

    ObamaCare Tax Hikes:

    $123 Billion

    Surtax on Investment Income (Jan 2013)

    3.8% surtax on investment income in households earning at least $250,000 ($200,000 single). Note: new tax rates capital gains 23.8% from 15% and dividends 43.4% from 15%.

    $86 Billion

    Medicare Payroll Tax (Jan 2013)

    Income above $200,000 (single) or $250,000 (family) employee tax increase to 2.35% from 1.45% of wages while self employed surges to 3.8% from 2.9% of income.

    $65 Billion

    Individual Mandate Excise Tax (2014)

    2014 1% of Adjusted Gross Income or $95

    2015 2% of Adjusted Gross Income or $325

    2016 2.5% of Adjusted Gross Income or $695

    $60.1 Billion

    Tax on Health Insurers (Jan 2014)

    Tax on health premiums collected that phases in until 2018, and is imposed on firms with $50.0 million in profits.

    $32 Billion

    Excise Tax on Comprehensive Health Insurance Plans (Jan 2018)

    40% excise tax on "Cadillac" healthcare plans defined as $10,200 single/ $27,500 family.

    $23.6 Billion

    Black Liquor (Jan 2010)

    On certain type of bio-fuel:

    $22.2 Billion

    Tax on Innovator Drug Companies (Jan 2010)

    $2.3 billion annual tax on industry distributed on share of sales made.

    $20 Billion

    Medical Device Manufactures (Jan 2013)

    2.3% excise tax on industry.

    $15.2 Billion

    High Medical Bills Tax (Jan 2013)

    Once deductions were allowed for medical expenses exceeding 7.5% of adjusted gross income, now the level is hiked to 10%. Waived for 65+ for 2013 to 2016.

    $13.2 Billion

    Flexible Spending Account Cap (Jan 2013)

    Also known as special needs kids tax used today for education among other needs. Before the new healthcare law, FSA were capped at $5,000; now caps established at $2500.

    $5 Billion

    Medicine Cabinet Tax

    Prohibits the use of health savings accounts; flexible spending accounts: or health reimbursement pre- tax dollars to purchase non-prescription and OTC medicines.

    $4.5 Billion

    Elimination of Tax Deduction for Employer-Provided Retirement Rx Drug Coverage 13

    $4.5 Billion

    Codification of "Economic Substance Doctrine" (2010)

    IRS can disallow completely legal tax deductions and other legal tax-minimizing plans if agency seems the actions lack "substance" and just used to reduce taxes.

    $2.7 Billion

    Indoor Tanning (2010)

    $1.4 Billion

    HSA Withdrawal Tax Hike (Jan 2011)

    Increase additional tax on non-medical early withdrawal from HSA to 20% from 10%:

    Fewer Choices

    The promise of more choices and cheaper insurance is also a myth that continues to unravel at lightning speed. In today's USA Today, it's reported that more than half of US counties don't offer a so-called Bronze Plan: this is the lowest priced plan. Which means the higher plan may be an example of catastrophic coverage. People are suffering massive sticker shock as the notion of getting sick under the bronze, and even silver plan, would mean worst-case economy scenario for so many families who were promised those were fears never to be revisited.



    Healthcare Insurance Plans



    Deductible (Individual)



    Deductible (family)



    Doctors visit



    Cap on out of pocket (single)



    Cap on out of pocket (family)



    Today's Session

    Equities will open higher as the market is now on automatic pilot. This is perhaps the best day for stocks in general as December 26 has seen the S&P 500 higher 79% of the time since 1945.

    Click here to get Charles Payne's Daily Market Commentary by email.

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