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This is one of the means to destroy private health insurances.
Those strapped by low finances will pay the fine instead of insurance companies in 2014.
Between 2014-2016, insurance companies will have to endure a decreasing customer base because of high costs (which means less people paying into the risk pool), and an increasing payout of money from those people who can't be denied for pre-existing conditions. They don't pay into the risk pool, but they will be allowed to collect benefits. Insurance companies will be hit hard.
So in 2016 and beyond, the fines will be higher than insurance costs - but how many insurance companies will remain? The goal is for government to be the only option standing by that time.
Insurance companies aren't stupid. They are smart enough to stop offering insurance before they go out of business.
I'm curious about what "teeth" they do have. I understand that they can seize your tax return. That's pretty simple to address, just reduce your withholding so that you owe or break even at the end of the year. Anyone that doesn't do that anyway isn't very smart. Beyond that, what does the law allow them to do to collect?
Nothing. They can only take the fine from your refund.
Nothing. They can only take the fine from your refund.
And if you have no refund, they WILL come after your assets. You would have to be really dumb to think they won't. Do you actually think they will just ignore the fact that after a few years of not paying the fine or having a refund for them to take you will owe them a serious amount of money? Not in a million years, they will take your earnings or your property.
Location: Just transplanted to FL from the N GA mountains
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Originally Posted by Toyman at Jewel Lake
I'm curious about what "teeth" they do have. I understand that they can seize your tax return. That's pretty simple to address, just reduce your withholding so that you owe or break even at the end of the year. Anyone that doesn't do that anyway isn't very smart. Beyond that, what does the law allow them to do to collect?
Along with that, I'm curious how much interest and penalties their going to tack on? Some friends of ours were victims of identity theft a couple of years ago. The IRS said, you didn't report income on your taxes in the amount of 45K. (Seems someone was using his SS number). During the investigation (which still isn't completed) they had to pay interest and penalties on this supposed income, before the IRS would process their return this year. It was a chunk of change... And why.. because by not paying the screwed up year penalties.. the IRS was going to start charging interest and penalty on 2012 due and payble in 13 even though it was correctly filed.
And if you have no refund, they WILL come after your assets. You would have to be really dumb to think they won't. Do you actually think they will just ignore the fact that after a few years of not paying the fine or having a refund for them to take you will owe them a serious amount of money? Not in a million years, they will take your earnings or your property.
What part of "they can only take the fine from your refund" is too difficult to comprehend?
(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.
The rhetoric that I've heard frequently is that young people can not afford Obamacare and they will simply take the $95 tax penalty.
But then I saw this posting on a friend's facebook:
Actual comment from someone who was able to log on to Obamacare website.....
I actually made it through this morning at 8:00 A.M. I have a preexisting condition (Type 1 Diabetes) and my income base was 45K-55K annually I chose tier 2 “Silver Plan” and my monthly premiums came out to $597.00 with $13,988 yearly deductible!!! There is NO POSSIBLE way that I can afford this so I “opt-out” and chose to continue along with no insurance. I received an email tonight at 5:00 P.M. informing me that my fine would be $4,037 and could be attached to my yearly income tax return. Then you make it to the “REPERCUSSIONS PORTION” for “non-payment” of yearly fine. First, your drivers license will be suspended until paid, and if you go 24 consecutive months with “Non-Payment” and you happen to be a home owner, you will have a federal tax lien placed on your home. You can agree to give your bank information so that they can easy “Automatically withdraw” your “penalties” weekly, bi-weekly or monthly! This by no means is “Free” or even “Affordable.”
I was puzzled why her fee would be so high, and the rest doesn't sound right. (and scary as hell if her numbers are really true) So I went to Obamacarefacts.com, and I had no idea that these fees go up every year!
2014 = $95 per person per year or 1% of your Income
2015 = $325 per person per year or 2% of your Income
2016 = $695 per person per year or 2.5% of your Income
2017 = Tax Penalty will increase by the rate of inflation going forward, or 2.5% of your Income
So what happens after 2017? It looks like this law gives the government the power to set any tax amount they want. What's to stop them from saying it will 25% of your income in 2018? They will squeeze and squeeze until it just becomes very difficult if not impossible to make a good living.
She forgot to add that she will also be getting a bill for 100% of the cost from whatever healthcare provider she shows up to when needing treatment because she will not be entitled to the insurance negotiated discounted fee.
She forgot to add that she will also be getting a bill for 100% of the cost from whatever healthcare provider she shows up to when needing treatment because she will not be entitled to the insurance negotiated discounted fee.
Yep and these hospitals and clinics want their money. Now they will often only give you 15 days to pay up or it goes to collections.
And if you have no refund, they WILL come after your assets. You would have to be really dumb to think they won't. Do you actually think they will just ignore the fact that after a few years of not paying the fine or having a refund for them to take you will owe them a serious amount of money? Not in a million years, they will take your earnings or your property.
I will bet that the unpaid fine will remain on the books incurring interest and penalties just like any other balance due to the government.
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