The Congressional Budget Office has just released new estimates of the number of people who will be subject to the individual mandate penalty tax for failing to obtain qualifying health insurance in 2016. According to CBO’s new analysis, the penalty tax will be paid by six million people. The penalty tax will generate an estimated $7 billion for the U.S. treasury and 80 percent of those paying the penalty tax will earn less than 500 percent of the poverty level. (For reference, the poverty line for a family of four is $23,050 in 2012, according to HHS.)
Now remember something, kids. This “penalty” is a tax. The Supreme Court said. Barack Obama says so as of about two months ago. All the Democrats are saying this is a tax since that was the only way the Supreme Court would uphold it.
So … Barack Obama has a tax increase planned for about five million poor and middle class families. Granted, it won’t kick in until he’s a lame duck in a hypothetical second term. But it’s a tax hike, nonetheless. And not on the rich.