Individual mandate

Health Care Tax Penalty Investment Fee Will Hit Six Million People

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The doctor is out…of his mind.

The number of Americans who will suffer a severe financial penalty under the Patient Protection and Affordable Care Act has been lowballed by at least half, according to the Congressional Budget Office (CBO). 

The CBO, which in 2010 projected 4 million people would be subject to an uninsured tax under the Affordable Care Act (ACA or Obamacare), yesterday raised that figure to 6 million. 

Obamacare's "individual mandate," which for the first ime in American history penalizes citizens for economic inactivity, will overwhelmingly hit the very people President Obama promised not to penalize in his 2008 campaign. From Associated Press' Ricardo Alonso-Zaldivar

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. 

The individual mandate (which Reuters says will bring in between $7 billion and $8 billion in annual federal revenue), was the most controversial provision of Obamacare, with the administration's lawyers arguing simultaneously that the mandate was a penalty rather than a tax and also that the mandate was authorized under either Congress' interstate commerce powers or its taxation powers. In a convoluted ruling that undermined most of the administration's own arguments, the Supreme Court in June nevertheless upheld the individual mandate as a straight tax. Advocates of limited federal powers such as legal scholar Randy Barnett have argued that this was a victory for enumerated powers. Which won't help the millions of people (this writer included) who will be getting our pockets picked. 

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  1. Drowning deep in my sea of loathing
    Broken your servant I kneel
    (Will you give it to me?)
    It seems what’s left of my human side
    Is slowly changing in me
    (Will you give it to me?)

    Looking at my own reflection
    When suddenly it changes
    Violently it changes
    Oh no, there is no turning back now
    You’ve woken up the demon in me

    Get up, come on get down with the sickness
    Get up, come on get down with the sickness
    Get up, come on get down with the sickness
    Open up your hate, and let it flow into me

    Get up, come on get down with the sickness
    You mother get up
    Come on get down with the sickness
    You fucker get up
    Come on get down with the sickness
    Madness is the gift, that has been given to me

    1. You take a mortal man,
      And put him in control
      Watch him become a god,
      Watch peoples heads a’roll
      A’roll…

      Just like the Pied Piper
      Led rats through the streets
      We dance like marionettes,
      Swaying to the Symphony…
      Of Destruction

      Acting like a robot,
      It’s metal brain corrodes.
      You try to take it’s pulse,
      Before the head explodes.
      Explodes…

      Just like the Pied Piper
      Led rats through the streets
      We dance like marionettes,
      Swaying to the Symphony…
      Of Destruction

      1. I hope this has a METAL tune to it….

        1. Megadeth recently went full retard with a Santorum endorsement. I can only assume senility has set in.

  2. I await the media’s 5 day barrage of reporting on the CBO’s “readjusted” figures.

    Perhaps if we could get this announcement secretly recorded on a cellphone – it would make the evening news.

  3. Hope and Change become Obey n’ Pay.

    If someone told me just after the Hilarycare debacle that we would see O!Care passed in this form, I would have signed their committment papers. Now I am just another inmate in the asylum, I guess.

    1. Hope and Change become Obey n’ Pay.

      What a great bumper sticker or campaign slogan that would make!

      1. Taste me you will see
        More is all you need
        Dedicated to
        How I’m killing you

        Come crawling faster
        Obey your Master
        Your life burns faster
        Obey your Master

    2. oh i am so stealing that lol

  4. After Georgetown, why am I not expecting any religious objections to be upheld?

    1. “Religuous objection” more likely than not just means nonwhite and/or nonJudeoChristian.

  5. Sometimes dude you jsut have to roll with it. Wow.

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  6. I thought i read somewhere that since the IRS cannot come after you for the penalty/tax, that if you plan it right and make it so that you either break even or owe a lil in taxes you can avoid the penalty/tax. Has that changed yet or is it wrong info?

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  8. This story lacks one thing. Context.
    First, this penalty which is about $700 only effects about 4% of the population. 30 million people are uninsured.

    Of these 30 million 20% will have to pay the penalty, 65% of this group of people as individuals have an average income of about $50,000 a year. They can afford to buy insurance or definetly afford the penalty.

    So this leaves about 2.5 million people who may not be able to afford the penalty. However, keep in mind this CBO estimate is based on a slow growing economy and states possibly denying Medicaid expansion because of the court ruling.
    So if the economy improves and states expand Medicaid this number can be even lower. Debunking conservative ideology with numbers! đŸ™‚ Obamas numbers turn out to be about right. I got most of this info from the Christian science monitor. Google it my fellow libertarians.

    1. Average income of $50,000 before or after taxes?

      If I paid only a thousand dollar a month for insurance, that’s 12,000 dollars out of my pocket. And I’m still paying for medicare, if I am drawing a paycheck. A large chunk of the uninsured wasn’t buying healthcare for a reason.

      The penalty makes perfect sense for just about every uninsured American for the first 2,3 years when the penalty is guaranteed to be less than what you would have to pay for insurance. After that, depending on what you make, you might as well pay for insurance.

      The economy could improve….. or employers could drop workers from coverage when they figure they’d have to purchase insurance anyways. The states could expand medicaid, but most of them are broke and you can’t run from the mandate forever.

    2. i think you’re the one missing the context. The point is that Obama pretends to be the champion of the poor and middle class and promised not to raise there taxes. The mandate does exactly that. Also, it’s not very Libertarian of you to argue FOR a mandate on how to prepare for potential health care costs. Actually that’s quite the opposite ideology.

  9. Rhino it’s not just pretends. I think there are some facts behind this decision.

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