During President Obama’s Sunday morning talk show blitz he bitterly rejected the criticism that his proposed mandate that all Americans must by law carry health insurance coverage would burden the American people with yet another new tax, something that the President has promised during his campaign not to do.
President Obama Says a Tax Isn’t a Tax
The truth of the matter at hand can be found in Subtitle D – Shared Responsibility of Senate Finance Committee Chair Max Baucus’s proposed America’s Healthy Future Act of 2009.
Excise Tax. The consequence for not maintaining insurance would be an excise tax. If a taxpayer‘s MAGI is between 100-300 percent of FPL, the excise tax for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or an individual claimed as a dependent) is $750 per year. However, the maximum penalty for the taxpayer unit is $1,500. If a taxpayer‘s MAGI is above 300 percent of FPL the penalty for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or as an individual claimed as a dependent) is $950 year. However, the maximum penalty amount a family above 300 percent of FPL would pay is $3,800.
The excise tax would apply for any period for which the individual is not covered by a health insurance plan with the minimum required benefit but would be prorated for partial years of noncompliance. The excise tax would be assessed through the tax code and applied as an additional amount of Federal tax owed. No excise tax will be assessed for individuals not maintaining health insurance for a period less than or equal to three months in the tax year. However, assessed excise taxes for those not insured for more than three months include the entire duration the individual was uninsured during the tax year.
— Senator Max Baucus (D-MT)
America’s Healthy Future Act of 2009
Leaving President Obama’s snideness, bitterness, and obviously growing desperation aside for the moment, this was one of his more stupid lies, reminiscent of his prevarications about key support for ObamaCare. He really should stick to well-nuanced disingenuousness about Americans being able to keep the healthcare if they like it, abortions not receiving federal subsidies, and illegal immigrants not getting expanded coverage.
ObamaCare mandates that every individual American must purchase health insurance and the “Baucus Bill” would institute a tax – specifically an Excise Tax – on anyone who failed to do so. It’s a tax, idiot! It’s even called a tax in the bill in question.