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Fri Jun 29, 2012, 12:40 PM

How Much Is the ACA ‘Tax’?

Q: How much will the “tax” penalty be for going without health insurance?


A: The minimum assessment will be $695 per person (but no more than $2,085 per family) in 2016, when fully phased in. The amount can be higher depending on income. But there are exemptions for low-income persons and others.




But it will be less to start. The minimum penalty per person will start at $95 in 2014, the first year that the law will require individuals to obtain coverage. And it will rise to $325 the following year.

Starting in 2017, the minimum tax per person will rise each year with inflation. And for children 18 and under, the minimum per-person tax is half of that for adults.


http://factcheck.org/2012/06/how-much-is-the-obamacare-tax/

23 replies, 3796 views

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Arrow 23 replies Author Time Post
Reply How Much Is the ACA ‘Tax’? (Original post)
liberal N proud Jun 2012 OP
Zalatix Jun 2012 #1
cliffordu Jun 2012 #4
Zalatix Jun 2012 #10
cliffordu Jun 2012 #13
FarLeftFist Jun 2012 #17
uponit7771 Jun 2012 #5
Fawke Em Jun 2012 #6
Zalatix Jun 2012 #7
FarLeftFist Jun 2012 #18
EC Jun 2012 #15
nadinbrzezinski Jun 2012 #21
derby378 Jun 2012 #2
uponit7771 Jun 2012 #8
B2G Jun 2012 #11
EC Jun 2012 #16
B2G Jun 2012 #19
uponit7771 Jun 2012 #3
B2G Jun 2012 #9
Bluenorthwest Jun 2012 #12
Ship of Fools Jun 2012 #14
backscatter712 Jun 2012 #20
Roselma Jun 2012 #22
liberal N proud Jun 2012 #23

Response to liberal N proud (Original post)

Fri Jun 29, 2012, 12:53 PM

1. So if you're making $28,000 a year you now lose an extra $695 a year on this in 2016. Minimum loss.

 

Nope, that won't hurt anyone's budget. Just get a second job to cover it, they're plentiful!

People in this tax bracket whose employers don't offer health insurance, or who have unemployed spouses, fuck them, they gotta pay, dammit.

I see the soup lines getting longer...

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Response to Zalatix (Reply #1)

Fri Jun 29, 2012, 12:56 PM

4. Fifty bucks a month for the year from 28,000 salary???

I wish I had such problems.

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Response to cliffordu (Reply #4)

Fri Jun 29, 2012, 01:03 PM

10. An EXTRA fifty bucks a month. And at $28,000 a year you likely cannot afford that extra expense.

 

Where I live, rent is likely to be more than HALF that per year. If your household is making $28,000 you are likely behind on something unless you ride a bike, are single AND are living in a roach trap. Of course it might go further in Le Traileur Parque, Alabammer.

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Response to Zalatix (Reply #10)

Fri Jun 29, 2012, 01:23 PM

13. Ah...

"Le Traileur Parque, Alabammer"

'Nuff said.

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Response to cliffordu (Reply #13)

Fri Jun 29, 2012, 01:46 PM

17. If you make $28,000/yr for a family of 4 you are eligible for Medicaid

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Response to Zalatix (Reply #1)

Fri Jun 29, 2012, 12:57 PM

5. My understanding is there is a subsidie per income...the Obama admin is STILL doing a horrible job

...at explaining these simple questions.

There should be an easy start app or website for ACA

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Response to Zalatix (Reply #1)

Fri Jun 29, 2012, 12:57 PM

6. No... then you would be give subsidies to purchase insurance

OR you'd qualify for Medicare's extensions, depending upon the number of your dependents.

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Response to Fawke Em (Reply #6)

Fri Jun 29, 2012, 12:59 PM

7. $28,000 a year is too high for that. You MIGHT get a subsidy.

 

Those who do get a subsidy have to pay for the insurance FIRST and then get the subsidy. Kind of a case of too little, too late.

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Response to Zalatix (Reply #7)

Fri Jun 29, 2012, 01:47 PM

18. No, 28000/yr is not too high for medicaid, depending on how many family members

A family of 4 IS qualified for medicaid.

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Response to Zalatix (Reply #1)

Fri Jun 29, 2012, 01:42 PM

15. Depends on the cut off for

the considered poverty group who won't be taxed. There is no penalty or enforcement remedies for not paying so you're not forced to pay.

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Response to Zalatix (Reply #1)

Fri Jun 29, 2012, 01:56 PM

21. People who are of low income

Will get subsidies. Under the exchanges 133% of poverty, they qualify for...free healthcare.

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Response to liberal N proud (Original post)

Fri Jun 29, 2012, 12:54 PM

2. Why the quotation marks?

It's a tax. The Supreme Court automagically converted the penalty into a tax yesterday.

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Response to derby378 (Reply #2)

Fri Jun 29, 2012, 12:59 PM

8. Bcause that wasn't the intent, there's no IRS enforcement of the "tax" so it's still

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Response to uponit7771 (Reply #8)

Fri Jun 29, 2012, 01:04 PM

11. There WILL be IRS enforcement

How do you think they're going to collect that tax? Via your federal income tax returns, that's how.

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Response to B2G (Reply #11)

Fri Jun 29, 2012, 01:43 PM

16. No there is no enforcement remedies.

The law itself spells out that the IRS cannot use remedies to collect.

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Response to EC (Reply #16)

Fri Jun 29, 2012, 01:53 PM

19. Then it's a toothless tax

Want to wager on how quickly this will change upon implementation? All of the pertinent info will be on your W2.

And even if it remains as is, the penalty will be deducted from your return. So the only way they won't get it is if you owe money when you file. If you think they won't just add the HC tax to that amount, you're nuts.

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Response to liberal N proud (Original post)

Fri Jun 29, 2012, 12:55 PM

3. K, this is the thing...2100 for my family of five is better than what I'm getting now

...through HCI...why not just risk the tax and get on the spot HCI?

unless they're not going to offer on the spot HCI...

Regards

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Response to liberal N proud (Original post)

Fri Jun 29, 2012, 01:02 PM

9. It is 2.5% of your income or the flat rate of $695

Whichever is more.

The penalty for people who forego insurance is the greatest of two amounts: a specified percentage of income or a specified dollar amount. The percentages of income are phased in over time at 1% in 2014, 2% in 2015, and 2.5% starting in 2016. The dollar amounts are also phased in at $95 in 2014, $325 in 2015, and $695 beginning in 2016 (with annual increases after that). The Congressional Budget Office projects that 3.9 million people will pay the penalty in 2016. The total penalty for the taxable year will not exceed the national average of the annual premiums of a bronze level health insurance plan offered through the health insurance Exchanges.

http://healthreform.kff.org/faq/will-everyone-have-to-buy-health-insurance.aspx

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Response to liberal N proud (Original post)

Fri Jun 29, 2012, 01:13 PM

12. And the definition of the word 'family' is? Biblical?

Some of us will not be treated fairly, as the tax code is bigoted. It would be nice to see that addressed. But it won't be unless a huge stink is endlessly raised.

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Response to liberal N proud (Original post)

Fri Jun 29, 2012, 01:34 PM

14. Just some general thought here:

I'm totally a visual person. At www.healthcare.gov, the homepage
has a *little button* at the top: "Health Care Law & You."

It's orange, so it stands out FAIRLY well, but imo the homepage
should begin with a large print, bulleted list of the benefits
of ACA. Simple, easy-to-read. Defined straight out of the chute.

It's been my observation that if the good and really smart
folks here at DU find themselves scratching their heads about
some of these issues, I can't imagine what the average Joe 6-Pack
is doing (and I'm your average Joe 6-Pack, fwiw.)

And how about some bumperstickers from HQ with
the site name/address? Along the lines of

ACA: Got Questions? Go to blahblahhblah

Just some thoughts.

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Response to liberal N proud (Original post)

Fri Jun 29, 2012, 01:56 PM

20. And it's only going to apply to a small fraction of the population.

Namely the people who can afford insurance, but choose not to get it.

If you're too poor to afford it, either you get a subsidy, which may very well cover most of the cost for you, or if you're below 133% of the poverty line, you get on Medicaid, or if somehow you slip through those two scenarios, you can simply explain that you can't afford to buy insurance and get an exemption.

Really, if you're in a situation where you have to pay the individual mandate penalty, you deserve it.

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Response to liberal N proud (Original post)

Fri Jun 29, 2012, 02:05 PM

22. The generosity of

subsidies cannot be minimized. Who on earth would rather do without insurance than have it provided for nearly nothing? That's just stupid. Take 10 seconds, play with this calculator, and see if it would ever be worth turning down Medicaid or turning down federal subsidies.

http://healthreform.kff.org/SubsidyCalculator.aspx

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Response to Roselma (Reply #22)

Fri Jun 29, 2012, 02:14 PM

23. Thanks for posting that

The dumbest questions of the day comes from those who think it would be smart to drop your insurance and pay the penalty.

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