Posted on 10/02/2013 11:08:47 AM PDT by CivilWarBrewing
The following is a screen shot of the comments section at Healthcare.gov and is circulating on the web. Among other startling facts, the user indicates that his fine for electing to 'opt out' of 0bamacare is $4,037.00 and would be attached to his tax return:
The number I see continuously thrown around is 6k deductible plus premiums.
That is not quite true. When I was self-employed many, many years ago I had a policy with a $5,000 deductible. I wasn't worried about the first $5,000 but about the next $10 million. It was very affordable and protected me from a catastrophe.
Well, now YOU are responsible for more disinformation, or, perhaps, you were misled by the chart. The MAX penalty is NOT just $285. It is 1% of your income. For someone making $50K, that is $500 the first year, and it grows to 2% or $1,000 the second year, and 2.5% or $1,250 the third year and every year subsequently.
Yeah, as a tea party member I cant wait for the IRS to handle health insurance issues!
“Oh, its a real shame Mr. X. I see in your file that you are a registered republican. It does sound like you need that hip replacement but your age and party affiliation might be a problem”
Like most news and opinions on the matter, it was a lie. The new law is disliked by more than enough voters without the lies.
So his fine will be $550, not $4,000.
Kinda different.
Yes Disinformation. The premium seems ok but the penalty is way too high and they can’t do liens.
OK, here’s my question: if the additional tax is assessed on your 1040, how will they apply any withholding or payments you’ve made?
For example, suppose your total income tax, not including the affordable care insurance tax is $ 2,500, and your ACA insurance tax is $ 500, that’s a total on the 1040 of $ 3,000. If you have $ 2,600 paid in, and don’t pay the balance, can you just claim that the additional $ 400 is insurance tax and tell them to pound sand?
On the other hand, is this a way to recoup some of the earned income credit? If Papa Smurf has a $ 3,000 refund from EIC and owes $ 500 AC insurance tax, are they going to send him all $ 3,000, or offset the AC insurance tax?
I have no need to do so.
But, this kind of hyperbole will just backfire. The law explicitly prohibits the IRS from pursuing someone for non-payment of the penalty. The only thing they can really do is withhold your tax refund, and it isn't difficult to structure your withholding or estimated tax payments to avoid any refund.
Yes, the IRS has a history of not following the law, or at least bending it. But, until they do so, and the evidence is more than a blog post with no corroboration, hyperbole will just undermine recognition of the real problems.
There are enough real problems with Obamacare. There's no need to invent ones.
But, still not good. It’s a lot for a mere fine! And yet, his premiums are what are really frightening. Still, it is a hoax. But, true stories do abound. My own is this: I am expected to pay somewhere between $510 and $815 per month for a 70/30 Silver plan (the rates vary at the three calculators I have found online). I cannot afford even the lower amount, and so, will not buy insurance. The catastrophic policy I have now will be outlawed, so that means no protection whatsoever, now. And because I cannot afford to buy the insurance my government tells me that I must buy, I will be deemed a freeloader and, worse, made to pay a penalty, and made a criminal when I refuse to pay that penalty. I do think there is a percentage of income rule that enables one to avoid the penalty, but the principle is the same. Meanwhile, I am scared to go online and give them any information. I am already an identity theft victim at the hands of the IRS. Why would I trust them?
I agree with your comments.
In the lead-in to the story the guy claimed to be in the 45-55k income bracket.
As this whole thing rolls out, I’m sure we will see a myriad of truth, exaggeration, and outright lies.
In the article, there's a link to the bill, as passed:
http://democrats.senate.gov/reform/patient-protection-affordable-care-act-as-passed.pdf
You can also find it here:
http://www.gpo.gov/fdsys/pkg/BILLS-111hr3590enr/pdf/BILLS-111hr3590enr.pdf
The language in question is actually on page 131 of the PDF:
(g) ADMINISTRATION AND PROCEDURE.— (1) IN GENERAL.—The penalty provided by this section shall be paid upon notice and demand by the Secretary, and except as provided in paragraph (2), shall be assessed and collected in the same manner as an assessable penalty under subchapter B of chapter 68. (2) SPECIAL RULES.—Notwithstanding any other provision of law— (A) WAIVER OF CRIMINAL PENALTIES.—In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure. (B) LIMITATIONS ON LIENS AND LEVIES.—The Secretary shall not— (i) file notice of lien with respect to any property of a taxpayer by reason of any failure to pay the penalty imposed by this section, or (ii) levy on any such property with respect to such failure.
There is a ceiling on the penalty, which isn't covered by this chart.
I've read elsewhere that the ceiling on the tax/penalty is the premium for a "bronze" plan bought through your state exchange.
Or as glitchy as the system is, maybe the crazy emails are actually being sent out by the system. I've lost faith in the government.
I've got a feeling that ObamaCare is going to be a lot worse than I ever thought.
How can they threaten loss of a drivers license if that is the case?...SSAN?
Actually that is probably $13000 total out of pocket. When I ran our incomes through the Covered Ca calculator for me and hubby the premium per mnth was almost $1k and the total out of pocket for the yr (which included premiums) was almost $20k.
Now that’s AFFORDABLE! Bastards.
Is the monthly rate for an individual or a family?
Hmmm...no driver's license AND rent an apartment....who does that sound like...oh, yeah!! the same folks who can't get an ID to vote and have 0Phones.
More handouts/bribes to the LIV(0) voters!
Scary numbers. Do you have to use ObamaCare or are you checking out what it would cost? If you are using something else, what does it currently cost you?
I heard yesterday that people searching for the exchanges were actually finding scam sites ranked higher than the real exchanges.
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