Thursday, September 27, 2012

Now about that individual mandate penalty tax


One of the reasons we've heard for the justifiability of the individual mandate comes from a moral standpoint, as in the "we're all in this together"/"we're all one big risk pool, now" and so, (you've heard this before "everyone needs to pay their fair share".

What this demonstrates to us is that there has been no real reforming of a broken system only a doubling down of dumping 30 million more Americans into that broke system.

But let's take that argument at face value and bounce it against a recently-released CBO report on who it is that is going to be paying the tax penalty for not signing up for health insurance.

No big surprise that the overwhelming majority of Americans who will have to pay the penalty tax (6 million people) because they are uninsured are from the lower income brackets. The CBO upped this estimate from 4 million people in 2010 because of the recent Supreme Court decision on ObamaCare which has led to states not expanding their Medicaid rolls, thus dumping 2 million more people into the uninsured category. (Yet another negative unintended consequence unleashed by ObamaCare)

6 million people in this gray area: Not poor enough to be granted an exemption but still poor enough to not be able to afford the still rising cost of health insurance and because of it - for their troubles - they will be dinged $695/person per year (children will be penalized around half that amount).

The total collections from the penalty tax will be about $7 billion in 2016 and will rise to $8 billion from 2017-2022.

Now, aint that a turn?:how's that for "paying your fair share" and how's that for "compassion"?

ObamaCare: being built on the backs of those who can't afford it.



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