Saturday, January 31, 2015

Gotcha! There Goes Your Tax Refund -- ObamaCare -- TrainWreck -- Administration Will Expand Exemptions -- January 31, 2015

It should be noted that this story broke on Super Bowl weekend when no one was paying attention and by next week it will be old news.

The New York Times is reporting.
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 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 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.”
The penalties, approaching 1 percent of income for some households, are supposed to be paid with income taxes due April 15. In addition, officials said, many people with subsidized coverage purchased through the new public insurance exchanges will need to repay some of the subsidies because they received more than they were entitled to. 
All those folks looking forward to income tax refunds aren't going to be happy. The interesting thing: we're talking about a handful of people in the big scheme of things, but they are going to be very, very vocal when they don't get their income tax refund.

Looks like ObamaCare will be deferred, waived, whatever for another year. I doubt the middle class will get any of those tax breaks. 

Joe Biden can probably explain this better than I can.

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