Tax, or Penalty? Doesn't Much Matter

IN an ongoing effort to inject some rational, evidence-based thinking into the Healthcare debate, here are a couple of facts about how the tax/penalty could affect you

First, it must be mentioned that the penalty only applies to people who can afford to have insurance, but choose not to, so they can continue to 'free-ride' on the backs of American taxpayers.


Taxpayers who are required to purchase health insurance and do not will receive a notice from the Internal Revenue Service (IRS) with the amount of the penalty they owe. Individuals who fail to pay the penalty are not subject to criminal prosecutions and the government cannot file notice of lein or levy any property for a taxpayer who doesn’t pay the penalty. 

The obligation for individuals to purchase health insurance beginning in 2014 was included as part of the Affordable Care Act.  The provision requires individuals to maintain minimum essential coverage for themselves and their dependents or pay a penalty of $95 in 2014. ($95!) Families would pay half the amount for children, and the requirement includes a cap on the total allowable fine per family. If affordable health insurance coverage is not available to an individual, then the penalty would be waived.  Along with the individual responsibility requirement, the Affordable Care Act also provides subsidies to some individuals beginning in 2014 to help pay for their health insurance premiums and other costs associated with their health insurance.

Taxpayers who are required to pay a fine but fail to do so will receive a notice from Internal Revenue Service (IRS). If an individual still neglects to pay the fine, the IRS can attempt to collect the funds by reducing the amount of their tax refund in the future.  Individuals who fail to pay the penalty, however, will not be subject to criminal prosecution. The government cannot file notice of lien or levy on any property for a taxpayer who does not pay the penalty.

I urge everyone to learn the facts before they adopt a position on the ACA. It is already working in massachusetts, and people ther are overwhelmingly in favor of it.

Don't believe the malarkey of the Tea Partisan Obama-haters.