If you don’t buy insurance, will you really pay the tax?

Article Highlights

  • Will the IRS be able to collect the #Obamacare tax?

    Tweet This

  • To get young people to buy health insurance when it’s more expensive than it already is, there must be real consequences.

    Tweet This

  • Though the #ACA imposes a tax, the law explicitly neuters the IRS’s ability to collect it.

    Tweet This

Generally speaking, if you owe money to the IRS, they will get it from you-with the possible exception of the ObamaCare tax.

Now that the Supreme Court has decided that ObamaCare's mandate to buy health insurance is a tax, will the IRS be able to collect it?

Generally speaking, if you owe money to the IRS, they will get it from you-with the possible exception of the ObamaCare tax. Though ObamaCare's individual mandate imposes a tax on people who do not purchase government-approved health insurance, the law explicitly neuters the IRS's ability to collect the tax.

Bizarre? Yes. And it matters. If policymakers expect uninsured young people to buy health insurance when it is even more expensive than it is today, the threat of serious consequences for not doing so must be real. Yes, the threat that the IRS might come after you if you do not do what you are told looks real at first glance. But Democratic politicians, fearing public backlash for making the mandate too intrusive, pulled its teeth.

Read the full article at the American.

Joseph Antos is the Wilson H. Taylor Scholar in Healthcare and Retirement Policy at the American Enterprise Institute, where Michael R. Strain is a research fellow.

 

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Joseph
Antos

 

Michael R.
Strain

What's new on AEI

Retirement crisis is hyped
image Why the Foley beheading will force Obama to continue US airstrikes
image How the New York Times misguides their readers on Internet regulation
image US still has time to stake out a position of strength on Ukraine
AEI on Facebook
Events Calendar
  • 25
    MON
  • 26
    TUE
  • 27
    WED
  • 28
    THU
  • 29
    FRI
Wednesday, August 27, 2014 | 3:00 p.m. – 4:15 p.m.
Teacher quality 2.0: Toward a new era in education reform

Please join AEI for a conversation among several contributors to the new volume “Teacher Quality 2.0: Toward a New Era in Education Reform” (Harvard Education Press, 2014), edited by Frederick M. Hess and Michael Q. McShane. Panelists will discuss the intersection of teacher-quality policy and innovation, exploring roadblocks and possibilities.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.