One of the consequences of having the Obamacare
penalty tax penalty tax: the IRS is going to be asking some questions:
As many as 3.4 million people who received Obamacare subsidies may owe refunds to the federal government, according to an estimate by a tax preparation firm.
H&R Block is estimating that as many as half of the 6.8 million people who received insurance premium subsidies under the Affordable Care Act benefited from subsidies that were too large, the Wall Street Journal reported Thursday.
“The ACA is going to result in more confusion for existing clients, and many taxpayers may well be very disappointed by getting less money and possibly even owing money,” the president of a tax preparation and education school told the Journal.
Obamacare subsidies are paid out based on your income. But it is difficult to predict income in advance, especially for those in the low-income brackets where jobs and income tend to be a bit more variable. As a result, several million people are going to find themselves with an unexpected tax bill because they made more money than they predicted. This was entirely foreseeable, of course, which meant the Administration did nothing to account for it.
In other tax-related news, the “Cadillac Tax” of Obamacare is kicking in. This means that many businesses are looking to cut insurance costs to avoid paying the tax. The best way to do this is to increase deductibles and co-pays so that your employees use less healthcare and your rates come down.
Guess who’s not happy about that:
“Deplorable, deeply regressive, a sign of the corporatization of the university.” That’s what Harvard Classics professor Richard F. Thomas calls the changes in Harvard’s health plan, which have a large number of the faculty up in arms.
Are Harvard professors being forced onto Medicaid? Has their employer denied coverage for cancer treatment? Do they need to sign a corporate loyalty oath in order to access health insurance? Not exactly. But copayments are being raised and deductibles altered, making their plan … well, actually, their plan is still extraordinarily generous by any standard:
The Harvard profs are having kittens because they will have to make $20 copays, meet a $250/$750 deductible and pay 10% of costs up to a maximum of $1500/$4500. I hate to tell them but that’s still a very generous plan.
The irony, of course, is that Obamacare was cooked up by Harvard, pushed by Harvard experts and implemented by a Harvard Law grad. Harvard faculty have overwhelming supported the President and Obamacare. So what this amounts to is our educational elites having a temper tantrum because they’re going to have to eat at the commoner’s table, if you can imagine such a thing. But instead of dealing with the reality, they’re insisting that we should be able to cut costs without cutting care.
Instead, they persist in our mass delusion: that there is some magic pot of money in the health-care system, which can be painlessly tapped to provide universal coverage without dislocating any of the generous arrangements that insured people currently enjoy. Just as there are no leprechauns, there is no free money at the end of the rainbow; there are patients demanding services, and health-care workers making comfortable livings, who have built their financial lives around the expectation that those incomes will continue. Until we shed this delusion, you can expect a lot of ranting and raving about the hard truths of the real world.
Especially when those hard truths get applied to the ruling class.