Randall S. van Reken, EA, CFP, ATP

Tax Man LLC

2012 Winter Rant

​Obamacare - It's Not About Health Care, It's About Taxes

I found it interesting that the Supreme Court decided that Obamacare was in fact a “tax” as opposed to a health care mandate.  A few years ago I was bored at a seminar, so I downloaded the bill when it was HR3200.  And I read the tax provisions of it.  I quickly realized that it was just that . . . a TAX bill.  Let me show that in two ways:

1. The IRS is hiring thousands of new employees to enforce Obamacare.  Some estimates go as high as 16,500 new employees.  If it’s not a tax, why is the IRS so involved?  Personally I thought it might involve . . . say . . . doctors, nurses, hospitals, but apparently not.
 
2. Starting in 2014 if you don’t have health insurance, you have to pay a tax . . . excuse me . . . a “shared responsibility payment” to the IRS .  It grows significantly over the first few years to a minimum of $2,085 per household of four.  And after you pay this penalty guess what you still don’t have?  You still don’t have health care!!