Don’t want to buy health insurance? No problem. The IRS will send you a tax bill. CNN reports the IRS may need as many as 16,000 new insurance police to enforce the law.
The penalty tax for non-compliance?
An adult who does not have health insurance by 2014 would be penalized $95 or 1 percent of income, whichever is greater, so long as the amount does not exceed the price tag of a basic health plan. But by 2016, the penalty increases to $695 for an uninsured adult, and up to $2,085 per household, or 2.5 percent of income, whichever is greater.
Let’s see. Buy health insurance or pay the greater of $95 or 1% of your income.
According to USA Today the average family health insurance premium is 2009 was $13,375.
The U.S. Census Bureau reports average 4-person family income for the last 12 months is $60,298.
OK math whizzes, let’s work this through.
Buy health insurance for your family and pay $13,375, or
pay a $95 penalty, or
1% of your income which is roughly $603.
Which of the following does not belong? $95 . . . $13,375 . . . or $603.
Of course the prez also said family insurance premiums would drop by $2500 or 3000%, whichever is greater.
Reality check.
Yes, Joe, this really IS a BFD . . .
