Obamacare penalty regressive, will cost most uninsured at least $1,000

The penalty imposed by the Affordable Care Act on citizens who elect not to purchase health insurance will be at least $1,000 for most people, and more than $12,000 for high-income earners, according to an analysis by the nonpartisan Tax Foundation.

“We can see that this is a big tax, particularly on the poor,” writes the Tax Foundation’s William McBride. “Higher income families generally pay a higher amount, but actually a smaller percent of their income, making this a regressive tax.”

For example, the penalty for a family of four earning $20,000 will be $2,085, more than 10 percent of its income, according to the Tax Foundation — whereas a family of four making $100,000 will only have two percent of its income taken away by the government.

Initially, the CBO projected that 3.9 million people would pay the tax in 2016, most of them low- and middle-income households. However, after the Supreme Court ruled that states could opt out of the Medicaid expansion that was intended to cover low-income uninsured people, the CBO put out a new estimate that there could be 6 million additional people dumped into the uninsured pool. Half of that 6 million is estimated to buy insurance.

Read more here.

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One thought on “Obamacare penalty regressive, will cost most uninsured at least $1,000”

  1. They get what they deserve for being in favor of this thing. They thought were going to get free healthcare, and now they’re getting taxed. I’m so happy these freeloading idiots will get what they deserve.

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