President Obama promised not to raise taxes on the middle class. He lied. Obamacare will hit nearly 6 million uninsured Americans, most of whom are middle class. The wealthy have insurance, the poor have Medicaid. It’s the middle class that struggles with the cost of health insurance. Now those middle class Americans will be taxed.
Nearly 6 million Americans — significantly more than first estimated— will face a tax penalty under President Barack Obama’s health overhaul for not getting insurance, congressional analysts said Wednesday. Most would be in the middle class.
The new estimate amounts to an inconvenient fact for the administration, a reminder of what critics see as broken promises.
The numbers from the nonpartisan Congressional Budget Office are 50 percent higher than a previous projection by the same office in 2010, shortly after the law passed. The earlier estimate found 4 million people would be affected in 2016, when the penalty is fully in effect.
That’s still only a sliver of the population, given that more than 150 million people currently are covered by employer plans. Nonetheless, in his first campaign for the White House, Obama pledged not to raise taxes on individuals making less than $200,000 a year and couples making less than $250,000.
And the budget office analysis found that nearly 80 percent of those who’ll face the penalty would be making up to or less than five times the federal poverty level. Currently that would work out to $55,850 or less for an individual and $115,250 or less for a family of four.
In justifying the tax, administration officials were suddenly interested in the concept of personal responsibility.
“This (analysis) doesn’t change the basic fact that the individual responsibility policy will only affect people who can afford health care but choose not to buy it,” said Erin Shields Britt of the Health and Human Services Department. “We’re no longer going to subsidize the care of those who can afford to buy insurance but make a choice not to buy it.” (Read More)
The government mandates that insurance policies cover everything under the sun, driving the cost up to the point where many individuals can’t afford it, then penalize them for not paying for what they can’t afford. This is maddening.