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2 Bumps

Tax evasion and Obamacare???

" The state controls who gets medicaid, so if they reject the law, you are not allowed medicaid and not allowed a federal subsidy, meaning you must find a way to pay full price for insurance for your family or you'll be found guilty of tax evasion. At least until the SCOTUS rules one way or the other, forcing subsidy or overturning state laws."NotPanicking
How would people who fall in this bracket be guilty of tax evasion?? Or did I just misunderstand you NP??
Definition of tax evasion in the US is..
"Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution"

I was under the impression that if you could not afford coverage, you get fined when you go to file your income taxes. I meant "get taxed" for those who will rip my head off for not being correct.
But I found an article which is another reason I hope SCOTUS over turns this insanely stupid Ocare law, and again why it is SUCH a bad idea. The first thing I found was that OCare will provide strong incentives for employers to avoid hiring workers from low-income households. Eligibility for subsidized insurance in the exchanges is based on household income, and the employers can be penalized if one of their workers gets subsidized coverage in an exchange. So the employers have a strong incentive to find workers who won’t qualify for subsidized coverage, which may also lead to invasions of privacy. For instance, a restaurant might find it better to hire young waiters from upper-income neighborhoods, as opposed to low-income areas, because they would be less likely to qualify for subsidized insurance in the exchanges. OCare therefore is penalizing the very households it was supposedly passed to help.
When Ocare is implemented, it will force most American businesses to offer government-approved health insurance to their employees or else pay new federal taxes for not doing so. This costly new requirement will make it more expensive for employers to hire workers in the future. Consequently, it will destroy jobs, and many firms are likely to slow down on hiring in anticipation of it implementation.
Then listening to his speech last night about wanting to raise the minimum wage to $9 an hour??? Is he just delusional? Does he really think all this is gonna work? Then when he says the US is the wealthiest nation in the world, just told he really is delusional, and a few other choice descriptions that may very well earn me a fly over from his weapon of choice, the drone.
Did you all know he has made unprecedented use of the drone since he has been in office??? Both for spying on a few choice Americans and then using the drone as an attack dog and dropping bombs on suspected terrorist hideouts. While I do approve the taking out the terrorists, he may very well be killing many innocent folks also that had the bad luck of being next one.
I still shake my head wondering how in the holy hell did Obama get rewarded with the Nobel Peace Prize...

Answer Question

Asked by Michigan-Mom74 at 2:34 AM on Feb. 14, 2013 in Politics & Current Events

Level 34 (66,351 Credits)
Answers (11)
  • I agree. Obamacare is f***ing scary, and the routine invasion of the privacy of American citizens that has grown under Obama is, too. Delusional is a good word for him.

    Answer by Ballad at 3:35 AM on Feb. 14, 2013

  • Yeah, the minimum wage thing makes me crazy - it just drives up prices and the people he thinks it will help will be in the same position because they will be paying more for the things they need.

    Answer by missanc at 5:55 AM on Feb. 14, 2013

  • $9 an hour!? You know how many small businesses that would KILL?

    Answer by But_Mommie at 7:46 AM on Feb. 14, 2013

  • Where did you get this information? Also, if minimum wage had kept pace with inflation it would be over $10 an hour. There is a site set up to help small business and nonprofits afford the purchase of medical insurance.

    Answer by booklover545 at 9:06 AM on Feb. 14, 2013

  • I don't know how you take the incentive away from the medical community and then expect that there will suddenly be enough Dr's to oversee the population of our country and then on top of that, actually believe that rationing won't happen.

    I think the comment about tax evasion is because they argued on both grounds of it being a 'penaltaty' and a 'tax' and it only stood constitutionally via the SCOTUS as a tax. The fact that it will be overseen by the IRS is even more troubling, however one has to wonder what kind of oversight they will have at first (i.e. next year when it goes into full effect). Since many states have chosen not to create an exchange for themselves, it will be left to the federal government to do something about it.

    The whole thing is a huge fucking mess that will just make things worse.


    Answer by QuinnMae at 9:45 AM on Feb. 14, 2013

  • How would people who fall in this bracket be guilty of tax evasion?? Or did I just misunderstand you NP??

    The reason they got away with putting in punishment for for not being insured, and the reason the SCOTUS refused to overturn the law, is that it's tied inexorably to the tax code. You must pay for your insurance out of pocket all year, no matter how much it costs. At the end of the year, when you file your taxes, you provide proof that you paid for insurance all year, and your subsidy (the money from the government helping to pay your insurance if you qualify for one, will be issued in the form of a tax refund). If you cannot prove you paid for insurance all year, you are fined in the form of a tax penalty. If you do not pay that fine, you are prosecuted for tax evasion.

    Doing that made the commerce clause not the main issue, since, when it's convenient, the law is a new tax, not a commerce regulation.

    Answer by NotPanicking at 1:47 PM on Feb. 14, 2013

  • "Where did you get this information? Booklover

    Which part are you talking about? The part of the employers incentive not to hire m,ore workers do to Ocare? Right here...



    Comment by Michigan-Mom74 (original poster) at 6:51 PM on Feb. 14, 2013

  • Um. I'm pretty sure if you can't afford health insurance you don't have to buy it. If you make enough money and choose not to buy it, THEN you pay the fine. They're not going to make people pay a fine if they plain don't have enough money

    Answer by katinthehat8914 at 9:31 PM on Feb. 15, 2013

  • And for the record, the minimum wage in Oregon is $9 an hour and we're doing okay. Not to be rude or anything, but there are states who already have this (or higher) as their minimum wage.

    Answer by katinthehat8914 at 9:33 PM on Feb. 15, 2013

  • Katie...For you all that lived in OR, yes you would be ok, but your price of living is more then it is here in MI. For you folks in OR, you more for 16% more for food, the cost of housing is 54% more, although your utilities are 15% less then what we pay here, but you pay 13% more for transportation, and the cost of health care is 19% more there then it is here. Our minimum wage here is only $7.40.

    Comment by Michigan-Mom74 (original poster) at 12:29 AM on Feb. 16, 2013

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