Obamacare Tax: Robbing Peter to Pay Politics

The Administration’s 15-day extension given to those enrollees who encountered technical difficulties on the federal exchange ended Tuesday, coinciding with one of the most dreaded days of the year – Tax Day. With the penalty ultimately being deemed a tax by the United State Supreme Court, the April 15th final deadline seemed fitting as those who can’t or refuse to comply with the insurance mandate will be forced to hand over more of their hard-earned money to the IRS.

A recent report by the Congressional Budget Office reveals just how much Washington is planning to rake in from the tax penalty.

“Though the stated goal of Obamacare is to increase the number of Americans with health insurance, the government’s accounting arm estimates it will get a revenue boost from those that do not buy coverage, anticipating $185 billion over the next decade in penalties from non-compliant individuals and employers.

“People who do not obtain coverage will pay the greater of two amounts: either a flat dollar penalty per adult in a family, rising from $95 in 2014 to $695 in 2016 and indexed to inflation thereafter (the penalty for a child is half the amount, and an overall cap will apply to family payments),” a new report from the Congressional Budget Office and Joint Committee on Taxation stated. The report said this could also be 1 percent of the household’s income.

The report said the offices “estimate that such payments from individuals will total $46 billion over the 2015–2024 period.”…

The revenue from employers would also be a significant $139 billion over 10 years, should that portion of the law – already delayed twice – ever take effect.” [1]

Yes, $185 – with a B – billion revenue boost. This sizable chunk of cash could have been used to purchase groceries, hire more employees, send kids to college, expand businesses, or stimulate any part of this slumping economy. Instead, it will be used to feed an already over bloated federal government that has no constitutional authority to dictate healthcare coverage.

To show how this egregious law is not only draining the finances of families and businesses, but also robbing the economy of potential growth, we put the numbers into perspective.

$46 billion – the current estimate – will be siphoned from individuals over the next 10 years, averaging at $4.6 billion a year. Below is what families across the country could purchase with this yearly amount.

  • 4.4 million months of groceries for a family of four, using a monthly cost of $1,047 for a moderately-priced grocery list. [2]
  • 63 million fill-ups for the minivan, assuming it’s a 20-gallon tank. [3]
  • 263,248 yearly tuition payments for a 4-year public university. [4]
  • 5.6 million monthly mortgage payments for an average-priced home in Indiana. [5]

This money, once used to purchase goods and services, will now bypass local communities and head straight to Washington, who has never met a dollar they didn’t spend.

Businesses will part with three times more – $139 billion – in total. This loss will have a chilling effect as their reinvestment generally translates into raises for employees, promotions and additional jobs for Americans. The President has chided Congress for not acting on his $10.10 minimum wage increase, stipulating that it’s a “no brainer.” Yet, his own policies are responsible for stunting employment and economic growth.

If President Obama is serious about helping Americans and this economy, maybe he should remove this burden – Obamacare – from the backs of Americans, so we can spend more, save more and have more freedom. That’s America’s no-brainer.