Tax penalty to hit nearly 6M uninsured people

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MmmMmmMmm

Fayetteville, AR

#1 Sep 19, 2012
Tax penalty to hit nearly 6M uninsured people

By RICARDO ALONSO-ZALDIVAR, Associated Press – 30 minutes ago

WASHINGTON (AP)— Nearly 6 million Americans — significantly more than first estimated— will face a tax penalty under President Barack Obama's health overhaul for not getting insurance, congressional analysts said Wednesday. Most would be in the middle class.

The new estimate amounts to an inconvenient fact for the administration, a reminder of what critics see as broken promises.

The numbers from the nonpartisan Congressional Budget Office are 50 percent higher than a previous projection by the same office in 2010, shortly after the law passed. The earlier estimate found 4 million people would be affected in 2016, when the penalty is fully in effect.

That's still only a sliver of the population, given that more than 150 million people currently are covered by employer plans. Nonetheless, in his first campaign for the White House, Obama pledged not to raise taxes on individuals making less than $200,000 a year and couples making less than $250,000.

And the budget office analysis found that nearly 80 percent of those who'll face the penalty would be making up to or less than five times the federal poverty level. Currently that would work out to $55,850 or less for an individual and $115,250 or less for a family of four.

Average penalty: about $1,200 in 2016.

"The bad news and broken promises from Obamacare just keep piling up," said Rep. Dave Camp, R-Mich., chairman of the House Ways and Means Committee, who wants to repeal the law.

Starting in 2014, virtually every legal resident of the U.S. will be required to carry health insurance or face a tax penalty, with exemptions for financial hardship, religious objections and certain other circumstances. Most people will not have to worry about the requirement since they already have coverage through employers, government programs like Medicare or by buying their own policies.

A spokeswoman for the Obama administration said 98 percent of Americans will not be affected by the tax penalty — and suggested that those who will be should face up to their civic responsibilities.

"This (analysis) doesn't change the basic fact that the individual responsibility policy will only affect people who can afford health care but choose not to buy it," said Erin Shields Britt of the Health and Human Services Department. "We're no longer going to subsidize the care of those who can afford to buy insurance but make a choice not to buy it."

The budget office said most of the increase in its estimate is due to changes in underlying projections about the economy, incorporating the effects of new federal legislation, as well as higher unemployment and lower wages.

The Supreme Court upheld Obama's law as constitutional in a 5-4 decision this summer, finding that the insurance mandate and the tax penalty enforcing it fall within the power of Congress to impose taxes. The penalty will be collected by the IRS, just like taxes.

The budget office said the penalty will raise $6.9 billion in 2016.

The new law will also provide government aid to help middle-class and low-income households afford coverage, the financial carrot that balances out the penalty.

Nonetheless, some people might still decide to remain uninsured because they object to government mandates or because they feel they would come out ahead financially even if they have to pay the penalty. Health insurance is expensive, with employer-provided family coverage averaging nearly $15,800 a year for a family and $4,300 for a single plan. Indeed, insurance industry experts say the federal penalty may be too low.

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MmmMmmMmm

Fayetteville, AR

#2 Sep 19, 2012
The Supreme Court also allowed individual states to opt out of a major Medicaid expansion under the law. The Obama administration says it will exempt low-income people in states that opt out from having to comply with the insurance requirement.

Many Republicans still regard the insurance mandate as unconstitutional and rue the day the Supreme Court upheld it.

However, the idea for an individual insurance requirement comes from Republican health care plans in the 1990s.

It's also a central element of the 2006 Massachusetts health care law signed by then-GOP Gov. Mitt Romney, now running against Obama and promising to repeal the federal law.

Romney spokeswoman Andrea Saul said Wednesday the new report is more evidence that Obama's law is a "costly disaster."

"Even more of the middle-class families who President Obama promised would see no tax increase will in fact see a massive tax increase thanks to Obamacare," she said.

Romney says insurance mandates should be up to each state. The approach seems to have worked well in Massachusetts, with virtually all residents covered and dwindling numbers opting to pay the penalty instead.

Copyright © 2012 The Associated Press. All rights reserved.

Darth Soetoro/Obama destroyer of America and the middle class.

FORWARD COMRADES!

FOUR MORE YEARS!

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NOMOREYEARS

Albuquerque, NM

#3 Sep 20, 2012
Here comes Maobama!

Forward into the breach Comrades - your blood
his ego - 47% of the ship of fools will believe
everything he serves up - then it will be too
late and they will be enslaved.
AntiAgenda21

Springdale, AR

#5 Dec 2, 2012
States need to say NO.
AntiAgenda21

Springdale, AR

#7 Dec 4, 2012
Jack Welch wrote:
About time! tired of paying for teabaggers health care cuz they don't wanna pay for insurance
About time! tired of paying for liberal dead-beats health care cuz they don't wanna pay for insurance
SelfEvidentTruth Army

Springdale, AR

#8 Feb 24, 2013
You were warned!
SelfEvidentTruth Army

Springdale, AR

#10 Feb 24, 2013
Jack Welch wrote:
<quoted text>
so were you now leave our country
Yes, I am stay in Republic.
APPAUSEPLEASE

Albuquerque, NM

#11 Feb 24, 2013
Welcome to Obamacare you fools!

Remember it had to be signed to find out what
was in the bill and what it would do to you.

Standby for more outrageous taxes and limitations.

Can anyone say "Death Panels".
Ex- El Paso Resident

Las Cruces, NM

#13 Mar 20, 2013
Best part of ACA is that the politicians that passed this disaster, regardless of what the public wanted, did not consider timing.

A good deal of the pain and cost for most citizens will occur in 2014 when most of the provisions kick in. More cost, 14 page forms, limited access, etc.

About the same time we are due for another election.

It is nice the pain from ACA will occur just before elections so we know who to vote out of office.

I have not voted to put anyone in for two decades. Just pick the lesser of two evils. Only registered for a party so I can vote against some jerks twice.
quit

Santa Fe, NM

#14 Mar 20, 2013
Ex- El Paso Resident wrote:
lying
You should

Santa Fe, NM

#15 Mar 20, 2013
MmmMmmMmm wrote:
be taxxed for each of the judge-its you give yourself for your inane poast.
Only

Santa Fe, NM

#16 Mar 20, 2013
APPAUSEPLEASE wrote:
Welcome to Obamacare you fools!
Remember it had to be signed to find out what
was in the bill and what it would do to you.
Standby for more outrageous taxes and limitations.
Can anyone say "Death Panels".
an idiot would.

There's one now.
Ex- El Paso Resident

Las Cruces, NM

#17 Mar 21, 2013
quit wrote:
<quoted text>
lying
Since you do not understand ACA and the additional cost:

3.8% tax on every property sale to fund ACA (what does selling a house have to do with health care)?

new taxes on medical devices (such as replacment knee) that will be passed on

$60 per year fee for employeers to pay to the Government for their insured employees.

These are just a few of the fun things in store for the public now that " sinced we passed this law now we should read what's in it".

Yes this is a tax (regardless of what the senate leadership, pelosi and the president say). The SC decided that one. So that was a lie (so you can tell the difference from a fact and a lie) of the POTUS, Ried and Pelosi when they said it was not a tax.

Fact's are b*tch arn't they? Educate youself by actually reading some of the ACA law instead of repeating MSNBC talking points.

And yes a majority of Americans did not want this law.

Just wait until full time folks are made part time (to get around ACA), people are laid off to get companies under 50 employees (to get around ACA) or employers pay the tax (a bargan of $3000) to drop their coverage of health insurance for their employees thus saving them money (typical health care cost employers, for their share, around $5K to $15K depending on the plan).

More fun to come.
More

Santa Fe, NM

#18 Mar 21, 2013
Ex- El Paso Resident wrote:
<quoted text>

.
BS
Ex- El Paso Resident

Las Cruces, NM

#19 Mar 21, 2013
More wrote:
<quoted text>
BS
Great job refuteing the facts (sarcasm).

Can you state any facts or simply spew one word responses?

Facts - 1

talking head points - 0
Ex- El Paso Resident

Las Cruces, NM

#20 Mar 21, 2013
Just few more facts for the one user with multiple names in Santa Fe.
According to Biden Pelosi is the Mother of Obamacare.
http://www.politico.com/politico44/perm/0710/ ...
California is bankrupt with unfunded liabilities so now take a look at what Momma Pelosi has done to help you join the ranks of the bankrupt.
Middle-class tax increases . There are at least a dozen direct and indirect tax increases that would break President Obama’s pledge not to raise taxes on those making less than $200,000 for singles and $250,000 for couples. These include:
* a $32 billion “Cadillac tax” on high-cost plans,
* an individual mandate tax on Americans who do not purchase government-approved health insurance,
* an increase in the 7.5% AGI floor for medical expense deductions to 10%,
* limits on Flexible Spending Accounts in cafeteria plans,
* increased penalties for nonqualified HSA distributions,
* other restrictions on Health Savings Accounts, Health Reimbursement Accounts, and Flexible Spending Accounts,
* a tax on tanning services,
* an employer mandate tax,
* a sales tax on medical devices,
* a tax on health insurance premiums,
* a tax on prescription drugs, and
* a tax on insured and self-insured health plans.
A special deal for union members. Starting in 2018, a single union worker in a multiemployer health plan would be completely exempt from the “Cadillac tax”(a 40% tax on high-cost plans) unless the price of that plan exceeds $27,500. In contrast, a single, non-union worker living right next door would start paying that Cadillac tax as soon as the value of her health plan exceeds $10,200.
Medicare surtaxes. Under the Senate version, the Medicare surtaxes on both earned income (imposed at a rate of 0.9%) and investment income (imposed at a higher rate of 3.8%) have lower thresholds now of $200,000 for singles and $250,000 for couples.
Higher taxes on real estate investments. The 3.8% Medicare surtax would hit average, middle-class investors in real estate. A middle-class taxpayer who happens to sell real estate for a significant gain in a particular year would be liable for this new tax, regardless of how low her income might be in other, more typical years.
Broad new IRS powers. This health care bill vastly expands the responsibilities of the Internal Revenue Service and would strengthen the IRS’s heavy hand in dealing with ordinary taxpayers who play by the rules. If this bill becomes law, the IRS may have to hire up to 16,500 additional auditors, agents, and other employees just to enforce all the new taxes and penalties. The bill would empower the IRS to:(1) verify that Americans have “acceptable” health care coverage; (2) fine Americans up to $2,085 or 2 percent of income (whichever is greater) for the failure to purchase “minimum essential coverage”; (3) confiscate tax refunds; and (4) increase audits.
New marriage penalties. Because the Democrats’ subsidies for health insurance are solely based on the federal poverty level, if two people make $32,000 per year, they would pay between $6,000 and $10,000 more for health insurance than before they said “I do.” This is because as singles they were poor enough to receive health care subsidies, but as a married couple, these Americans are too rich for federal assistance.
Ex- El Paso Resident

Las Cruces, NM

#21 Mar 21, 2013
continued:

A Cadillac tax. The Cadillac tax in the Democrats’ health care bill would not keep pace with medical inflation after it comes into effect in 2018, meaning a larger and larger tax hit over time. Beginning in 2020, this tax would be indexed by only the consumer price index. Given that health insurance premiums will likely increase faster than CPI, the Cadillac tax would hit more and more plans each year and take a bigger bite from those already covered

Non-indexed surtaxes. Instead of learning the lesson of the Alternative Minimum Tax, which hits more and more Americans every year because the exemption level is not indexed for inflation, the Democrats’ bill repeats this mistake by failing to index the exemption threshold for the Medicare surtaxes on both earned and unearned income.

Higher catastrophic costs. Current law provides important tax relief to Americans who suffer catastrophic out-of-pocket medical expenses, permitting a deduction for costs above 7.5% of income. The Democrats’ bill would raise that threshold to 10% of income in 2012 (2016 for seniors and the disabled). This is a particularly hard hit on those with the highest medical costs who can least afford to pay more taxes. And, according to the non-partisan Joint Committee on Taxation, more than 95% of the revenue generated from this tax increase would come from taxpayers earning less than $200,000.

Higher taxes on investments. Under the Democrats’ bill, the Medicare tax would, for the very first time, apply to capital gains, dividends, interest, rents, royalties, and other investment income of singles earning over $200,000 and couples earning over $250,000. Currently, capital gains and dividends are taxed at a top rate of 15%, but those rates are already scheduled to rise in 2011 to 20% and 39.6%, respectively. When the expansion of the Medicare tax is coupled with the already scheduled rate increase, capital gains rates on these types of investment income, long-term capital gains rates would rise by almost 60% next year – from 15% to 23.8%– and the top tax rate on dividends would nearly triple – from 15% to 43.4%
Ex- El Paso Resident

Las Cruces, NM

#22 Mar 21, 2013
According to Biden Pelosi is the Mother of Obamacare.
http://www.politico.com/politico44/perm/0710/ ...
California is bankrupt with unfunded liabilities so now take a look at what Momma Pelosi has done to help you join the ranks of the bankrupt.
Middle-class tax increases . There are at least a dozen direct and indirect tax increases that would break President Obama’s pledge not to raise taxes on those making less than $200,000 for singles and $250,000 for couples. These include:
* a $32 billion “Cadillac tax” on high-cost plans,
* an individual mandate tax on Americans who do not purchase government-approved health insurance,
* an increase in the 7.5% AGI floor for medical expense deductions to 10%,
* limits on Flexible Spending Accounts in cafeteria plans,
* increased penalties for nonqualified HSA distributions,
* other restrictions on Health Savings Accounts, Health Reimbursement Accounts, and Flexible Spending Accounts,
* a tax on tanning services,
* an employer mandate tax,
* a sales tax on medical devices,
* a tax on health insurance premiums,
* a tax on prescription drugs, and
* a tax on insured and self-insured health plans.
A special deal for union members. Starting in 2018, a single union worker in a multiemployer health plan would be completely exempt from the “Cadillac tax”(a 40% tax on high-cost plans) unless the price of that plan exceeds $27,500. In contrast, a single, non-union worker living right next door would start paying that Cadillac tax as soon as the value of her health plan exceeds $10,200.
Medicare surtaxes. Under the Senate version, the Medicare surtaxes on both earned income (imposed at a rate of 0.9%) and investment income (imposed at a higher rate of 3.8%) have lower thresholds now of $200,000 for singles and $250,000 for couples.
Higher taxes on real estate investments. The 3.8% Medicare surtax would hit average, middle-class investors in real estate. A middle-class taxpayer who happens to sell real estate for a significant gain in a particular year would be liable for this new tax, regardless of how low her income might be in other, more typical years.
Broad new IRS powers. This health care bill vastly expands the responsibilities of the Internal Revenue Service and would strengthen the IRS’s heavy hand in dealing with ordinary taxpayers who play by the rules. If this bill becomes law, the IRS may have to hire up to 16,500 additional auditors, agents, and other employees just to enforce all the new taxes and penalties. The bill would empower the IRS to:(1) verify that Americans have “acceptable” health care coverage; (2) fine Americans up to $2,085 or 2 percent of income (whichever is greater) for the failure to purchase “minimum essential coverage”; (3) confiscate tax refunds; and (4) increase audits.
New marriage penalties. Because the Democrats’ subsidies for health insurance are solely based on the federal poverty level, if two people make $32,000 per year, they would pay between $6,000 and $10,000 more for health insurance than before they said “I do.” This is because as singles they were poor enough to receive health care subsidies, but as a married couple, these Americans are too rich for federal assistance.
Ex- El Paso Resident

Las Cruces, NM

#23 Mar 21, 2013
Ok Quit, Only, More and whatever other names you use.

Call me a poopy head next and show your real IQ.
Ex- El Paso Resident

Las Cruces, NM

#24 Mar 21, 2013
ACA - written by the insurance industry lobby for the insurance industry and support by bought and paid for senators and representatives.

Does not make medical care affordable.

It shifts who pays for it and adds 20 million to 30 million new customers to the private insurance companies rolls.

Insurance companies won.

More customer that can pay due to the Government taxing everyone else to pay for them.

Tip. Buy health insurance stock

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