I just came across this letter from IRS Commissioner John Koskinen related to his July 17 presentation to Congress on the tax implications of ObamaCare for last tax year. I’m sure there are broad points that could be made with some investigation, about the additional expense of premiums, about likely increases next year, and so on. On the fly, though, a couple of impressions are worth making.
First is how inappropriate it is for this to be the purview of the Internal Revenue Service. It’s bad enough that the agency is empowered to take our money away and to collect all sorts of personal information in the process. Now our healthcare is mixed up with it. This is an agency that targets people for audits if they give to the wrong kind of non-profit.
Second is how the billions just slosh around in government. With two-thirds of the estimated number of Americans expected to file claims related to the “premium tax credit” having done so:
- $10 billion was paid out in health insurance subsidies (3.2 million taxpayers; $3,125 average).
- $780 million more was paid out after claims on tax returns (1.3 million taxpayers; $600 average).
- $1.3 billion was taken back from taxpayers who’d received subsidies (1.6 million taxpayers; $800 average).
- $1.5 billion was taken from taxpayers who had to pay the penalty for not having insurance (7.5 million taxpayers; $200 average). (The percentage of income used to calculate this penalty doubles in the current tax year.)
The IRS will now be sending collection letters to 710,000 Americans with a “reminder” that they have to file, along with “correspondence” to another 760,000 who filed tax returns without the ObamaCare form.
Beyond its attempt to take over healthcare across the country, this law is an excuse for government intrusion and redistribution of income.