The Obamacare deadline is right around the corner, but should the poor be worried while the rich can simply laugh it off?
In a related report by The Inquisitr, the Obamacare approval rating reached an all-time low just as the deadline started approaching. But those who fear the Obamacare penalty may get to laugh it off for one more year:
“Under the new rules, people will be able to qualify for an extension by checking a blue box on HealthCare.gov to indicate that they tried to enroll before the deadline. This method will rely on an honor system; the government will not try to determine whether the person is telling the truth. The rules, which will apply to the federal exchanges operating in three dozen states, will essentially create a large loophole even as White House officials have repeatedly said that the March 31 deadline was firm.”
According to the White House, all Americans must be signed up for health insurance by March 31, 2014 in order to avoid the Obamacare deadline. The original Obamacare penalty maxes out at $285, or one percent of the income, for a family of four. In 2016, the Obamacare penalty maxes at $695 per person, $2,085 for the family, or 2.5 percent of taxable income, which amounts to $173.75 per month.
In the end, about 5.9 million Americans are expected to ignore the Obamacare deadline and end up paying the penalty. Some can try to ignore it entirely since there are Obamacare exemptions that cover religious beliefs, the poor, qualifying Native Americans, illegal aliens, criminals, those suffering “hardships,” and many other categories. But the reason why the rich won’t have to fear the Obamacare deadline is because when Congress passed the Affordable Care Act in 2010 the IRS was banned from making public liens, garnishing wages, or doing anything that might scare those who fail to purchase health insurance:
“The penalty applies to any period the individual does not maintain minimum essential coverage and is determined monthly. The penalty is assessed through the Code,” the tax code, “and accounted for as an additional amount of federal tax owed.” So it’s tax. However, it is not subject to the enforcement provisions of subtitle F of the Code. The use of liens and seizures otherwise authorized for collection of taxes does not apply to the collection of this penalty. Non-compliance with the personal responsibility requirement to have health coverage is not subject to criminal or civil penalties under the Code and interest does not accrue for failure to pay in a timely manner.”
Unfortunately, while the IRS might be limited to writing scary letters to the rich who refuse to pay the tax man, when it comes to the poor they can simply enforce the Obamacare penalty by deducting the fine from your income tax return. Since the rich pretty much never receive a return this means the Obamacare deadline really only affects the poor.
Do you plan on ignoring the Obamacare deadline and paying the penalty required by the Affordable Care Act?