Saturday, January 23, 2010

Over the counter drug tax increase in bill

 clipped from www.frc.org

Tylenol: The Pain Reliever Democrats Tax Most

Chief Justice of the Supreme Court John Marshall (1801-1835) once said, "[T]he power to tax involves the power to destroy." Without a doubt, the Obama administration and its Democratic allies in Congress see the power to tax as the greatest weapon in their arsenal. The Libertarian organization, Cato Institute, just released a list of tax increases those in power and Washington have--or are trying--to tax. One potential levy they left off the list is hidden in the Senate and House health care overhaul bills. Under ObamaCare, over-the-counter drugs, like antihistamines, Tylenol, Pedialyte or even prenatal vitamins will all be subject to a tax increase of up to 40 percent if either bill passes. If you pay for any over-the-counter medicines (a full list can be found here) with a flexible spending account (FSA) or health savings account (HSA), then you'll find that both bills restrict individuals with these pre-tax accounts from buying a "medicine or drug only if such medicine or drug is a prescribed" one, which forces individuals (most of whom make well below $250,000 a year) to pay more.

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