Obamacare's Tax Mess

  • 4 February 2015
  • NormanL
Frustrated Man Obamacares Tax Mess

Millions of taxpayers are about to get socked with penalties from the IRS, all due to obamacare">Obamacare. What does the Administration propose to do about it? Offer more exemptions from the law:

Obama administration officials and other supporters of the Affordable Care Act say they worry that the tax-filing season will generate new anger as uninsured consumers learn that they must pay tax penalties and as many people struggle with complex forms needed to justify tax credits they received in 2014">2014 to pay for health insurance.

The White House has already granted some exemptions and is considering more to avoid a political firestorm.

Mark J. Mazur, the assistant Treasury secretary for tax policy, said up to six million taxpayers would have to “pay a fee this year because they made a choice not to obtain health care coverage that they could have afforded.”

But Christine Speidel, a tax lawyer at Vermont legal">Legal Aid, said: “A lot of people do not feel that health insurance plans in the marketplace were affordable to them, even with subsidies. Some went without coverage and will therefore be subject to penalties.”

Let's see...an amazingly complex law passes congress">Congress (most of whose members never read the bill before they voted for it). Time passes and people discover the amazingly complex law has some real problems that could end up getting much worse.

A rational person would look at all of this and say it's a bad law that needs to be scrapped. But if you're the Obama White House, you instead try to patch the law on the fly, and blame people for not understanding it (nevermind that no one else in the federal government knows how it works, either).