We guess that Tax Day wasn’t enough of an f-you to the American people because today Obamacare’s teeth get even sharper. Americans have already begun to feel the sting of Obamacare as they’ve watched their healthcare premiums increase – or worse, their plans get cancelled. Now, millions of Americans are about to see their taxes go up under the individual mandate.
It is the last day for individuals to sign up for health insurance coverage. That means if you haven’t signed up for coverage by the end of today then you’re going to owe $95 or 1 percent of your income, whichever is greater, on next year’s tax bill. According to a recent study in the Wall Street Journal, the penalty is almost always more than $95, for example:
In a more common case — a married couple with two kids making $50,000 a year on the adjusted basis — the penalty for not having insurance could run about $300 a year. The same couple making $100,000 a year on this basis could be subject to a fine of about $800.
Those penalties will grow significantly larger in 2016, and young adults between 18 and 34 are going to get hit hard. Colorado is no exception. The Denver Post has well documented the problems facing young adults in Colorado trying to shop for affordable coverage. Those reluctant to sign up for Obamacare over cost concerns are being forced to choose between insurance they can’t afford and a tax penalty that actually might be less money out of pocket.
So happy Tax Day Peak Nation™! AND happy individual mandate day! Anybody else want a shot?