Obama promised to increase taxes only on “the rich.” However, this “tax” wpuld apply to everyone who was not insured, regardless of income, ie, not progressive.
It is true that those of lower income who chose to sign up for Medicaid (not all low-income people are eligible; and for some who are, there is a waiting list), would not then have to pay the “tax;” however, this leads to the conundrum of “taxing” those who do not have or who turn down state aid.
And of course one is left to wonder why the cost of the expansion of federally-funded and mandated health care was not ever mentioned; instead we heard only about how much money wpuld be saved by the government as a result of this law, leading a normal-thinking person to wonder why the tax is needed.
Employers can already deduct 100% of the premiums they pay for group health plans.
Ahhh, that’s what I was trying to say. Thank you for clarifying that.
That depends on how you view it. The tax is 2.5% and its capped at the cost to insure you.
Hmmmm, Sounds like if the average price of health insurance is $10k/yr, then if your adjusted taxable income were over $400,000/year, you wouldn’t have to pay the full “tax.”
Now, say that a family has an income of $50k adjusted income, and paid 10%; that would be $5000 they pay in taxes. If the employer did not provide health insurance and they had to pay for their own, that would cost them $10k. If they were unable to afford to pay 20% of their gross income on health insurance, they would pay an additional 2.5% “tax,” or $1250 (which was described as a fine when the legislation was discussed).
So those who cannot afford health insurance will pay this “tax,” while those who can afford health insurance on their after-tax income or who have it provided by their employer on untaxed income will get a 2.5% “reduction” from the previously unmentioned 2.5% increase.
Gee, sounds like a fine to me. Esp considering the way it was emphatically described during the discussion on the then-proposed legilation. That was odd, they passed the bill then found that it included an across-the-board tax increase and a very minor tax deduction.
A person which would be more expensive to cover would pay more.
I didn’t understand this…