“...If I do not to have health insurance, then my tax liability goes up via the tax penalty.
I call that not the same thing...”
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You dont have kids? Your tax liability goes up...
You dont have a mortgage? Your tax liability goes up...
You dont give to charity? Your tax liability goes up...
You dont contribute to a 401K plan? Your tax liability goes up...
You didnt put in a new high efficiency air conditioner? Your tax liability goes up...
You didnt buy an alternative fuel vehicle? Your tax liability goes up...
You dont have health insurance? Your tax liability goes up...
Same damn thing.
A tax credit and a tax penalty are not the same thing.
With the health insurance tax penalty I’m being penalized for not doing what the government is trying to coerce me to do. I have no option. Do as they say or be penalized. The IRS will enforce this.
There’s no coercion with tax credits. I don’t have to take a tax credit, even if I qualify for one. There’s no forced penalty if I choose not to take the credit. I’d be foolish not to take it, but there’s no IRS forcing me to.
The IRS didn’t hire 15,000 plus agents to force people to take tax credits.