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  • More Middle-Class Americans Hit by Obamacare Tax

    Yesterday, the Congressional Budget Office (CBO) released a new report that determined that even more Americans than previously estimated will be hit with Obamacare’s ever-controversial individual mandate tax, totaling 6 million by 2016.

    Of the 30 million Americans whom Obamacare leaves uninsured and without affordable insurance options, 6 million will have to pay the penalty, an increased estimate from 2010. According to CBO, “About two million more uninsured people are now projected to pay the penalty each year, and collections are now expected to be about $3 billion more per year.” The total cost to uninsured Americans will be around $7 billion in 2016 and is projected to be about $8 billion every year from 2017 to 2022.

    The tax penalty is calculated in different ways depending on income levels. If they do not obtain Obamacare-mandated health insurance, households with lower incomes will pay a flat dollar amount each year, and those with higher incomes will pay a penalty equal to a percentage of their incomes.

    Despite claims made by Obamacare’s advocates that the law will help middle- and low-income Americans, CBO’s table reveals that the distribution of the tax falls heavily on those making less than 400 percent of the federal poverty level (FPL)—meaning the majority of this new tax falls on the very people the law was supposed to help. For instance, a family of four making about $24,600 per year, the projected FPL in 2016, could be subject to this egregious tax penalty.

    Regardless of whether or not these 6 million Americans want health coverage, they are going to pay a hefty tax and still won’t have it. Moreover, the individual mandate tax is only one of Obamacare’s 18 new or increased taxes and penalties that will cost Americans $836 billion over the next 10 years.

    Posted in Featured, Obamacare [slideshow_deploy]

    11 Responses to More Middle-Class Americans Hit by Obamacare Tax

    1. Bobbie says:

      I thought I heard the slut talk of democrats chant "it starts from the middle-class out" after their "bottoms up" that didn't work!? So Obama's care is deliberately hitting the middle class so hard they will soon be government dependents! Get the government out of all classes and private services like insurance to STOP the government focus on their abuse of power that continually corrupts to collapse!

      • Jerome Bigge says:

        Obamacare in truth was a "sell out" to the private health insurance with their 20% markup's over cost. With private insurance you pay in a dollar's worth of premiums to get back on the average 80 cents worth of benefits. Compare this to what people pay in "single payer" countries for health insurance. In effect you pay in $1.00 or the same in national currency to get 95 cents worth of benefits. We could have done even better by breaking the "monopoly" in health care to start with. Repeal of prescription laws would have been a good start. Allowing "parallel" imports of medical drugs would have been another. Creation of "doctor on a disc" medical software yet another. Development of multiple tier medical institutions still yet another. In effect, creating a true free market in health care would have reduced our health care costs considerably simply by getting the heavy hand of government as far out of health care as possible. Medical savings accounts without a limit could replace most private insurance, especially under true free market conditions. Libertarians such as myself have been advocating these ideas for a long time.

    2. Conrad says:

      How about a list of categories that if people fall in them they will have to buy insurance or pay a penalty i.e. kids >26 no longer on Dads insurance but living at home w/o a job. Theoretically every kid that graduated in the past 4 years (8M) cannot find a job and fall in the category of giving up looking (88M). See BLS houshold tables 1A.

    3. Jerry Suggs says:

      And yet some people still want obama to serve another four years? I for one can't afford him.

    4. Mike D. says:

      I am a retired federal employee and just got my new insurance rates for 2013. My insurance costs are increasing by approximately 19% this year. I have GEHA and it was $185.00 monthly in 2012 and it's going to be $221.00 per month in 2013. Thank you OPM and Mr. Obama.

    5. Lloyd Scallan says:

      Yet the established Republican hand-picked candidate Romney tells us all that he will "keep parts of it" despite his promise during the campaign to "throw the whole thing out". When Obama is reelected, we all had better look to the GOP, just as we did in 2008 with McCain. Except this time, the nation will not survive another four years of Obama. We know it and so does the GOP!

      • Anthony Tellez says:

        Boy are you lucky…to be retired & still have access to health insurance! I am 56 & have worked continuously for 40 years. I recently had to make a career change due to the recession. First of all, I am faced with the fact that I will never be able to stop working, literally (not asking for sympathy, just a fact). Secondly, my employer just announced that our defined benefit pension plan will change for anyone who is not fully vested (i.e. less than 5 years. of service). I.e. everyone's retirement will be a defined contribution. because they will no longer guarantee the specific pension benefit.
        I do have a basis for understanding your situation. My dear mother is 88, a widow, US. Army Veteran, retired from Civil Service, & happy to pay for her Blue Cross Insurance plan. She also enjoys C.O.L.A. increases from her government pension that offset her premium increases!
        Lastly, have you ever thought that the sky high rates & profits of insurance companies, doctors, surgeons, hospitals, drug companies, imaging companies, R.N.'s, nursing homes, therapy clinics, etc. have something to do with it! Therein lies the conundrum. Wives, attorneys, government, insurance companies…can't live with them & can't live without them. Well you can, just have to resign to go it alone & pay the entire freight yourself, as your GOP gods will have you do.
        God help you, because your fellow Republican won't..by design, you are on your own!

    6. neal r says:

      What constitutes somebody not having insurance? Premiums are normally paid monthly. Does buying insurance in December mean you had insurance for a whole year? What if an individual buys insurance for Jan. to June, lets it lapse for 3 months of July to September than buys it again, paying premiums for October to December. Is this counted as insured for the full year?

    7. Pete Green says:

      The liberal agenda keeps pumping up Obamacare without knowing what is in it. As in Pelosi's own words, "you have to pass Obamacare so you know what is in it" . That was about a stupid statement, especially coming from someone in Congress who is suppose to know what is going on and what they are selling the public and these pumpers continue to badmouth the Romney campaign for trying to get rid of it. We are on S.S., Medicare payments for each of us are about $100.00 / mo , wife's Medicare pres. plan another 43.00 mo. , her secondary coverage – 205.00 mo. and we still pay about another $5,000.00 / year out of pocket. Obamacare is going to make this better, in your dreams !!

    8. Syd Bradbury says:

      As I read the CBO report, if I am single and make less than 400% of the federal poverty level, that would be roughly $48,000. If the premiums for health insurance would exceed 8% of my income ( $3,840 or 320 per month ) I will not have to pay the penalty tax. On the other hand, if I only have myself to support, why would I not have health insurance when I have that income? ($4,000 per month) I can also be exempt from the tax if I can show hardship. The only people who will pay the tax are those who just want to be contrary and make the rest of us pay for the unreimbursed medical costs they incur. They deserve the penalty. The vast majority of people will chose to have health insurtance and will not have to pay the tax. The Heritage foundation is saying that people who can afford insurance and chose not to have it deserve to have their costs paid by the rest of us? I don't think so.

    9. Benson II says:

      So far it looks like the facts have fallen on deaf ears of at least half of voters. The more we make it easy on them the more likely they'll vote liberal again. There's only one way to inform them since the media won't, suffer along with them until they see the light then get rid of all the Democrats possible and undo it totally. When we protect ourselves we're also protecting them from the truth. Since we couldn't pick the right candidate to inform them this seems like the only way left. In Ohio we have a Republican governor who actually took a ( I think it was a 10 million dollar debt) left by a Democrat governor balanced the budget got rid of the debt and didn't raise taxes. So because Ohioians aren't suffering enough from their bad first decision, electing a Democrat, they also weren't hurting enough to rid us of Obama. The reason Carter was ousted was because we had an articulate candidate telling the truth and everyone could see the disaster of the hostages but most of all we were all suffering with long gas lines. Even the press couldn't save his a$$ because even lying didn't shorten the gas lines or bring home the hostages.

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