Sunday, January 25, 2015

Obamacare Tax Penalties & Imprisonment - Coming Soon!

When Obamacare was first passed in to law, my mother, who is a die-hard Obama fan, laughed when I told her that people will go to prison for non-payment.

"That's ridiculous!" she told me. "They just said on the news that no one will go to jail!"

"Well then, why did they right it in to the law?" I replied.

After a moment she replied, "Obama says no one will go to jail and that's good enough for me!"

If you've completed your taxes for 2014 yet, as I have, you'll notice a new section for Obamacare. And, if you've been in just about any public place, you may be seeing the health insurance representatives out in force, soliciting new clients.

Just last week, I spoke with a very nice saleswoman named Donna about the farce otherwise known as "Obamacare"  According to her, she sells an average of $500 per month healthcare plans (more expensive than the plans she sold before Obamacare came in to law) to the average household, complete with high deductibles.  


Did you know that before Obamacare, individuals could write off healthcare bills under bankruptcy protection. Now, under Obamacare, if you don't pay for insurance, you are fined by the IRS. Those fines accumulate interest when unpaid, and can lead to imprisonment. And yes, people will be going to jail for non-payment beginning 2016! This will last until 2019 when much if not all of Obamacare will finally be repealed. 

We had a good laugh at my suggestion that once she's done selling healthcare, she can get in to tax penalty and bankruptcy consulting.  Too bad that before Obamacare, people could write off medical expenses under bankruptcy protection. Now, with the mandate, failure to pay Obamacare means you get hit with a hefty tax penalty, and this will result in jail time, tax liens, etc.

According to Whiteoutpress.com, the tax penalty for not paying Obamacare increases to 2.5% of taxable income in 2016. Now, this may not seem like much, but to those in the middle class that live paycheck to paycheck, it certainly is a big hit come tax time! And, these penalties could hit as many as 47 million Americans!



"According to Census Bureau data from 2012, there are 48 million of us who don’t currently have any health insurance. Government estimates expect 6 million of those to enroll in Obamacare. That leaves 42 million Americans who will be forced to either go out and buy health insurance or pay the Obamacare tax/fine, or as ruled by the US Supreme Court, go to jail for tax evasion."


Now, if you're like me, you've made provisions to protect yourself from being surprised by these penalties by actually purchasing insurance. In my case, I'm moving overseas, and have easily found far more comprehensive healthcare insurance plans, complete with low deductibles, for less than half the price of staying in the United States.

Good luck to those in the productive lower middle classes. The next few years are going to hurt, especially if you're already on a tight monthly budget. 

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