The GOP was too stupid to take advantage of information out there and make effective ads and debate points on this. The low information voters will be as surprised by these penalties OR high insurance policy costs come 2014. I hope it isn’t too late for the mid-term elections. Many were surprised by the expiration of the tax holiday for 2% ss/medicare taxes. Come on GOP do your job. I made the mistake of donating again this past election cycle only to be disappointed again. I won’t donate this next cycle until they PROVE they are ready to fight the fight.
The good news is that, for most people, the “penalty tax” for those who choose not to buy health insurance will cost a lot less than health insurance.
As with everything tax-related, there’s no simple answer to “How much is the Obamacare penalty tax?” But here are some key points, from FactCheck.org:
The penalty/tax will be phased in from 2014 to 2016.
The minimum penalty/tax in 2016 will be $695 per person and up to 3-times that per family. After 2016, these amounts will increase at the rate of inflation.
The minimum penalty/tax per person will start at $95 in 2014 (and then increase through 2016)
No family will ever pay more than 3X the per-person penalty, regardless of how many people are in the family.
The $695 per-person penalty is only for those who make between $9,500 and ~$37,000 per year. If you make less than ~$9.500, you’re exempt. If you make more than ~$37,000, your penalty is calculated by the following formula...
The penalty is 2.5% of any household income above the level at which you are required to file a tax return. That level is currently $9,500 per person and $19,000 per couple. The penalty on any income above that is 2.5%. So the penalty can get expensive quickly if you make a lot of money.
However, the penalty can never be more than the cost of a “Bronze” heath insurance plan purchased through one of the state “exchanges” that will be created as part of Obamacare. The CBO estimates that these policies will cost $4,500-$5,000 per person and $12,000-$12,500 per family in 2016, with the costs rising thereafter.
So, basically, you’re looking at penalties of approximately the following at the following income levels:
Less than $9,500 income = $0
$9,500 - $37,000 income = $695
$50,000 income = $1,000
$75,000 income = $1,600
$100,000 income = $2,250
$125,000 income = $2,900
$150,000 income = $3,500
$175,000 income = $4,100
$200,000 income = $4,700
Over $200,000 = The cost of a “bronze” health-insurance plan
Does anyone in O-Butt's administrations seriously think they are going to collect a $695 penalty from someone making $10,000, subsidy or not? These are going to be permanently uncollectable and people will go entirely underground (as I will -- I'm going to stop buying car insurance as well, already did once and then relented).