When Americans pay the gas tax, they assume (wrongfully) that the money is going to roads and bridges upon which they will drive their cars. As we approach 2016 and Obamacare’s taxes for not having insurance approach $700 per person, what exactly do voters get for that money?
The “tax”, as the Supreme Court ruled, isn’t just assessable when someone fails to purchase health insurance. Americans must also pay the tax if they buy health insurance deemed unacceptable to the government. Plans like high-deductible health plans with health savings accounts won’t be allowed under the new law and cost-savvy health consumers will no longer have that lower-cost option without also paying the Obamacare tax.
In 2014 the tax starts out small – just 1% of income or $95 whichever is greater. In 2015 it goes up to 2% of income or $395 per person per year. In 2016 it grows to $695 per person per year and grows every year after that using the government’s flawed inflation calculations.
Many Americans are considering just paying the tax so that they can avoid the over-insurance present in Obamacare. The premiums of the plans on the exchanges will be exorbitant in order to pay for those that just pay the tax and only get insurance when they get sick or hurt – we’ll call those free-riders. This is possible due to the pre-existing conditions clauses in Obamacare that prevents insurance companies from charging someone more or denying coverage to someone that already has a condition prior to first premium payment.
Those choosing the
penalty tax versus paying for insurance they don’t want or need are weighing the options and might even feel that they are getting one over on the government. Paying $695/yr so that they don’t have to pay$450+ month for an overly-rich, government-prescribed health care plan sound financially well-thought – until a fundamental question is asked: What do you get for your $695/yr? NOTHING!
The government has found a way to get employers and citizens to give it money for nothing. You don’t get better roads or bridges, better hospitals or a new playground at your children’s school. You don’t even get better healthcare. You get.. bubkiss, nada, zilch, zero… And some are happy to do it!
Obama didn’t completely lie. He said that if we liked our health coverage we could keep it. Unfortunately, he forgot to mention that we might have to pay almost $700 per year per person to keep that privilege.