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Exemptions Galore

It's not a penalty, it's a tax

Received: 10Aug2014 (partly from the Worcester Telegram)

About 30-million Americans have no health insurance

These uninsured residents are required to buy health insurance by 2016
Otherwise, they pay a minimum of $695 in additional taxes.

Don't believe that this tax revenue will keep the ACA financially viable because the CBO estimates that only 13% will actually pay the tax.

The other 87% will use one of the following exemptions to dodge the tax:

  • you were a victim of domestic abuse
  • you received a shut-off notice from a utility company
  • you are a native American
  • one of your close family members died
  • you filed for bankruptcy
  • your family had extraordinary medical expenses
  • your religion objects to the idea of insurance
  • an insurance plan would exceed 8% of your income
  • as a result of the enactment of the ACA, your individual insurance was cancelled
  • in the last 24-months, you had medical expenses that resulted in substantial debt
  • you were homeless

Bottom line: about 26-million people will pay nothing in tax penalty which will result in an ACA revenue loss of $18B but don't fret, we had an infinite amount of money to recover the website boondoggle so there is plenty left to deal with this revenue shortfall.