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Obamacare's Chief Enforcement Officer: The IRS

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Thursday, 23 August 2012 08:07

Written by Justin Credible

As noted in the American Spectator, the IRS is the chief enforcer of Obamacare.  After all, the individual mandate is the core of the law and collecting dues from individuals that don't have coverage is one way the law is funded.  Well, that and gutting Medicare by $716 billion.  Obamacare is so massive that the IRS will need 5,000 employees minimum to enforce the law, which is only the beginning of the government taking over the health care system.  Americans will be shocked what's changed once the law gets implemented.

Below is very useful information about the IRS's role in enforcing Obamacare.  We reported back in April that the IRS would massively expand, but that all of the details wouldn't be known until the law was fully implemented.  The law is so big that the government is having trouble implementing it, which is also happening with Dodd-Frank financial reform.  The takeaway: two of the most transformative laws in American history are too big for the government to manage.  This will be a nightmare for citizens.

Here are additional details:

Perhaps the most important and complex new IRS responsibility is to enforce the act's individual and employer mandates requiring individuals and employers to buy the health insurance not that they want, but that the federal government says they must have. This will effectively be a new burdensome payroll tax on the middle class and working people, and on job creators, as politics will force every politically correct benefit to be included in the required insurance, causing its cost to soar. That health insurance will likely cost $20,000 per year per family to start, rising rapidly after that. President Obama's 2008 campaign promise not to raise taxes on singles making less than $200,000 a year, and couples making less than $250,000, has been thrown aside and forgotten, with the Supreme Court ruling that the individual mandate is constitutional precisely because it is a tax.

Individuals who fail to comply and buy the health insurance chosen for them by Kathleen Sebelius will be subjected to a penalty of $695 per person per year, up to a maximum of $2,085 per family, or 2.5% of household income, whichever is greater. Pilla explains that "The gross applicable penalty is pro-rated to apply on a monthly basis 'for any month during which any failure' to have adequate coverage exists."

The PPACA precludes the IRS from using its levy power or filing tax liens to collect these penalties on individuals. But Pilla notes the IRS can offset the penalties against any federal income tax refund owed to you. The IRS can also seize any state or local tax refund you are due as well. And if you send any payment to the IRS that is not specifically designated in writing as applying to a specific IRS debt, the IRS can apply it to your health insurance penalty, and you will not be able to get it back.

The employer mandate is a new vicious tax on job creation that is already causing employers to cut back on hiring. Employers can either pay $20,000 a year or so for the family coverage Kathleen Sebelius chooses for them, required by the PPACA not only for their workers but for all of their dependents as well, or they can start paying the tax penalties. That includes for those with 50 or more full-time employees a penalty of $2,000 per year per full time worker (minus 30 employees), if they offer no insurance. But even if the employer does provide employee health insurance, the employer is assessed a penalty of $3,000 per employee if the worker nevertheless qualifies to purchase his or her own health insurance on a state health insurance exchange and does so.

Under these incentives, even employers who have provided employee health insurance for years are likely to drop the coverage. The bottom line is that $2,000 per worker is a lot less than insurance costing $20,000 per family, with possible further penalties of $3,000 per worker. That is why top economists are predicting that tens of millions will lose their employer-provided coverage as a result.

The costs of not having insurance under Obamacare will be a massive burden for many individuals and families.  Of course, the White House and Democrats have worked overtime to hide the true impact of the law as much as possible until after the 2012 election.  They know it's smooth sailing if they make it past 2012, despite the entire health care system getting destroyed.  As long as liberals achieve their agenda, everything else is meaningless.  They're disgusting human beings.

Justin Credible is a contributing editor for Habledash.