IRS Will Enforce ObamaCare — Eventually
One of the most hotly debated aspects of the new health care legislation is what it will mean for the role of the IRS in American society.
Conservatives have loudly trumpeted that 16,500 new IRS agents will be required to audit and enforce the individual mandate provisions of the health bill. That figure seems to have originated with a March 18 analysis prepared for the ranking Republican on the House Ways and Means Committee, Dave Camp (R-MI). The report claims that the new legislation would grant the IRS the power to verify if you have “acceptable” health insurance and fine you “up to $2,250 or 2 percent of your income” if you do not. In addition, the report concludes that the IRS may need upwards of $10 billion “to administer the new health care program this decade” and may need “as many as 16,500 additional auditors, agents and other employees to investigate and collect billions in new taxes from Americans.”
However, it is important to note that the report offers that 16,500 figure as an estimate only, based on “reasonable assumptions about costs and program responsibilities” such as the current number of IRS employees, current IRS payroll, and Congressional Budge Office (CBO) estimates of additional funds the IRS may need to enforce the new law.
In a March 11 letter to Senate Majority Leader Harry Reid (D-NV), CBO Director Doug Elmendorf did estimate that the IRS may need an additional “$5 billion to $10 billion over 10 years for administrative costs” (note that the analysis for Dave Camp took the high end of that estimate, the $10 billion figure, as its starting point). However, during congressional testimony on March 25, IRS Commissioner Douglas Shulman claimed that the agency had not yet finished completing its own estimates on what the legislation will mean for its staffing and funding needs.
Shulman also claimed in his testimony that the IRS will not audit taxpayers to verify if they have acceptable health coverage. Instead, he envisions that “the Department of Health and Human Services and the [insurance] exchanges will be working with the insurance companies to determine what is acceptable coverage.” However, Shulman did admit that the IRS would be involved in the “tax portions” of the new law, i.e., incentives, subsidies, credits, and penalties.
Of course the IRS will “police” taxpayer compliance. (The Military would seem to unfriendly.) If for no other reason than to enlarge the size of government and to exert more control over the American people. Money to the government is like meth to an addict. How better to equalize the citizens than to take from the productive 50% who pay taxes and redistribute to the 50% who don’t. The IRS as enforcers makes perfect sense to carry out this mission. Just like the Mafia needs enforcers to filter money to the top. The Mafia will break your knee caps and the IRS will confiscate your house. So, what’s the difference ? Don’t they both claim to be voluntary “for your own best interest” of protection. Don’t get me wrong I am happy to pay my fair share for national defense, caring for the very needy, etc. but not for a larger jet for Nancy Palosi, purchasing votes , and buying congressmen and congresswomen and the massive waste by government. We as Americans have gone from viewing the Sopranos to living the Sopranos thanks to Obama, his friends, and the soon to be increased IRS enforcers. Begin the protest by voting NO on any incumbent.
I believe we must pay for a representative government. right now…I don’t believe the government we have represents anythin constructive and most positively, not me.
The way we are watched and treated…I can understand why people try to hide assets etc. It will only get worse
We will be voting NO on incumbents that have voted against/for anything we think was not representative of our views. Although we do live in a very red state, we are not Republican, nor dems.. We tend to vote for the people that we feel represent our point of view.
$5/10billion for administrative costs is outrageous. I do not see how our country can last as a democracy with all the things that have passed and are happening in our country.
Many of my friends are uninsured and I do not think they will buy insurance just to satisfy the mandate. My very good friend works selling car’s, which pays modestly. We have not discussed his income since 2008. I suspect he is still pulling in between 50-100k a year. He purchased a home down the block from me for 350,000 dollars and opted to skip insurance for the near future so he can pay down the loan a little faster so he can get his loan under control before he has his first child.
Combined income for the house would be in the low 6 figures. Once you get done paying the taxes and the bills he is left with a rather small amount to use to prepay. Most of that money is used to pay down the loan. Due to his high income he will be stuck paying most of the insurance premium if not all of it. I suspect insurance for 2 adults will likely be around 10,000 dollars a year. Every 10,000 dollars he pays off of his mortgage for the next 4 or 5 years. Will save him a total of 76,000 dollars after 25 years of interest.
Having control over your capital is so important if you want to get a head start on life. Its going to have dire effects on upstart business’s. Since the owners will now be required to carry insurance. Removing much needed investment money. Once again the hard working folk are screwed. The subsidy to buy insurance will be very small if your income is over 30k. From what I have read a person with a 30k income will receive roughly 1500 dollars towards coverage. Leaving an unfunded liability of roughly 3,500.
None of my uninsured friends plan on buying insurance. Why should they if they can’t get soaked for a preexisting condition. Which will really screw the insurance companies who will have a higher percentage of sick people vs. healthy folks. Which will force the IRS to break out tougher policies. We will up our dependants so we owe money at the end of the year. There is really no option but to enforce this really hard.
“There is really no option but to enforce this really hard.”
I can think of several options that don’t entail the IRS becoming larger and more intrusive. Personal Freedom comes to mind first.
Let them! We will enforce universal civil disobedience!
My balls feel so kicked.
I want to go home…I want to go home….I want to go home…
REPEAL.
How, exactly?
Perhaps THIS will eventually null and void everything Barry has signed into ‘law’ thus far???
micro management form dc.
Yup. Changing behavior through the tax code and the IRS. To reduce human carbon gas emissions and alleviate the shortage of organ transplants, I understand there is a tax subsidy to promote the growth of one lungers in Obama care. If you volunteer to get a lung removed for an organ bank there’s a one lung investment credit available. I don’t know if includes other redundant organs, like kidneys and gonads and teats. I understand the EPA wants more one lungers too, and is considering a carbon offset program to promote more one lungers in lieu of expensive wind mills.
Conservatives may be right to fear this brand-new IRS enforcement thing. However, it looks as though there might also be another such enforcement task force in the works…
http://www.moonbattery.com/archives/2010/04/will-obamunism.html
…and it’s supposed to come into effect just before this fall’s elections. What timing, huh?
Look for the State to increase withholding by the amount
of the potential ‘Fine’ (can’t call it a tax) avoiding the
cost (including hazard pay) of collecting the fines in person.
If the republicans cannot repeal this legislation or do not make a concerted effort to do so, then they may as well be relegated to Reagan`s ash heap of history. This law was passed by democraps alone, with no input from republicans and against the will of the American people so I for one do not want to hear any bellyaching from republicans or anyone else that it cannot be repealed. In fact , the republicans should have already introduced legislation in this congress to do so. Even if the democrap controlled congress wouldn`t consider the bill it should still be introduced as a gesture of things to come. This would lend creedence to the Republican Party going into the Nov election that they are serious about disposing of this rancid piece of garbage legislation.
Republican! Get it done!!
It doesn’t matter what the GOP does. We are stuck with Dems running the White House for the rest of mankind. We’ll have four more of Obama, followed by eight of Hillary. All the illegals have made the Republicans more extinct with each border crossing. That’s reality. But unfortunately so is unemployment. While I will never see a non-Dem win again, I will never see unemployment get anywhere near 5% again either.
I have the ultimate revenge against the IRS. I have lived my not having not worked for the State, or ever taken any form of welfare or unemployment.
This is the most balanced piece I have read on this site. Congratulations to the author.
Well, the mandate does not kick in until 2014. Even then the first years fine will be less than 100$. Hopefully by then there will be a cheap public option.
Hmmm will that public option be mandatory and required with penalties of jail and fines if you choose not to use it! This is just more forced taxation disguised as health care reform. Try reading the actual bill and all the other laws that it refers to, you will find that it is not free and makes you and your children slaves to the government who decide when and where and by whom you get care if at all!
#15 Brian: A cheap public option? I wouldn’t hold my breath. There will be nothing cheap about Obamacare. You’ll see skyrocketing premiums & doctor/hospital bills, shortages of quality providers, long waiting periods for routine procedures, and bureaucrats making decisions about the care you receive, if any. Several Democratic House members have said publicly that the IRS won’t be enforcing it, which means you can take it to the bank they will.
Those thousands of new IRS agents should instead be used to audit every individual receiving taxpayer subsidies for their health insurance as well as every individual who does not pay any federal income taxes.
If the Democrats are so intent on shoving this up our… um, down our throats then I want proof that every dollar is spent correctly.
And, while we’re at it, when do we get to see Geithner’s 2009 tax returns? As a known tax fraud in charge of Treasury, I should have the right to know if he’s obeying the law he’s enforcing on others.
The IRS will levy a penalty. They have never been limited to collected penalties from tax refunds. Expect liens on homes, sales of homes, and seizure and sale of personal property.
Look for the IRS (and the BATF) to become increasingly paramilitary in nature- more goons for the oblammo gang to use against law abiding citizens. . . .the tipping point is drawing ever closer.
I’d like to piggyback on M. Report (Comment #11). The commissioner admits to setoff of tax refunds against any individual mandate fine owing, as a probable collection mechanism. M. Report suggests that the IRS will rejigger the withholding tables to account for the fine, which makes good sense. For the unsuspecting taxpayer, it’ll pump up the amount of any refund providing ample room to deduct any such fine. And I think the IRS can adjust those tables under its regulatory powers (‘tho I’d have to research it to make sure).
But knowledgeable taxpayers will adjust their withholding to match their estimated taxes. How does the IRS sock them? I suspect that the IRS will apply taxes you’ve paid during a given year first to the individual mandate fine, then to current year taxes, then to delinquent taxes and related penalties and interest. If you underpay the total amount owing, then you’ll be deemed to have underpaid your taxes, not the fine, and penalties and interest will be applied to your deficiency.
It’s only a step from there to tax liens and other collection efforts.
All this is why the IRS has sixty Remington shotguns ordered. Check it out.
Not with standing all the other problems Obamacare has, there’s a very real possibility of it never happening…largely due to funding…or I should say lack there of. The bottom line is there is no realistic way to pay for it.
With the massive lack of jobs (and growing) and huge number of unemployed (and growing), there aren’t enough working people to pay for the rest. The US is on the verge of a long depression and not far off from third-world status.