I must admit, I have been remiss and have not scoured the “Baucus Proposal”. I waited in anticipation, downloaded it as soon as it was available and then………..when I opened it my eyes glazed over. After spending days reading the last bill (H.R. 3200) I’m just not looking forward to this one. However, after the Obama Sunday show extravaganza and the discussion of the ‘definition’ of tax – I got started.
Page 29 of the Baucus Proposal.
Excise Tax. The consequence for not maintaining insurance would be an excise tax. If a taxpayer‘s MAGI is between 100-300 percent of FPL, the excise tax for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or an individual claimed as a dependent) is $750 per year. However, the maximum penalty for the taxpayer unit is $1,500. If a taxpayer‘s MAGI is above 300 percent of FPL the penalty for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or as an individual claimed as a dependent) is $950 year. However, the maximum penalty amount a family above 300 percent of FPL would pay is $3,800.
The excise tax would be assessed through the tax code and applied as an additional amount of Federal tax owed.
George was right.
What could this possibly mean for you:
Single Person = $62.50 to $125 per month of new taxes
Family = Up to $316 per month of new taxes
If your Modified Adjusted Gross Income (MAGI) on your last tax return was more than 300% of the Federal Povery Level (FPL) you will not be eligible for ANY tax credit to offset these costs. So, if you are a single person making more than $15.63 per hour – sorry, no bennies for you.
How would a new $300 bill each month impact your family? Where will you make the cuts, food, clothing?
Where do you fall in these numbers?
Um, what happened to no tax increases.