Saturday, February 21, 2015

Obamacare Tax Monster | Bogus Enrollment Numbers | And No You Can't Fire a Drunken Trucker on Armstrong & Getty 2/20/15

My Friday visit to the Armstrong and Getty studio (I'm in the first half of this hour):

And more information on the stories we covered:
  1. No, there really aren't 11.4 million sign ups and the website is still not fully functional 5 years after this behemoth passed.  
  2. The IRS is requesting a $2 billion budget increase and 9,000 new agents as it prepares to enforce Obamacare’s 46 new tax provisions
  3. Record Dependency: Half of all kids in California are now on the government healthcare program for the poor.
  4. The New York Times published that we are now up over 30 exemptions to the Individual Mandate.
  5. You can fire a driver if he’s an alcoholic, right? You won’t like the answer
  6. Covered California Sends Out Nearly 100,000 Tax Forms Containing Errors, Others Deal With Missing Forms
  7. Gaming Obamacare: If a family of four makes $85,000 but states their income is $52,000, they would have a significant difference in subsidy. This subsidy—close to $5,000—would far exceed the payback limitation of $2,500.
  8. The Obamacare tax nightmare is going to be bad, very bad.  This is from Investor's Business Daily
... The way ObamaCare works is that when people sign up, they have to guess what their income will be for the following year. Whatever subsidy they get is based both on their projected income and the cost of the relevant Silver plan. 
The problem is that these people now must reconcile their actual income with whatever they guessed when enrolling for ObamaCare. If they earned more than they guessed, they'll have to pay back some of their "advance premium tax credit." If they earned less, the IRS will refund them the difference. 
With us so far? 
To reconcile their income, they must confront the new Form 8962, which really should be called the H&R Block Full Employment Form. 
Form 8962 is a testament to all that is wrong with ObamaCare. It takes up two pages, contains five parts and requires a total of 36 steps. Several of those steps involve separate worksheets. The instruction booklet explaining it all runs 15 pages. 
Filers first have to calculate their entire family's "modified" adjusted gross income (which requires a separate set of calculations), locate the correct poverty line number in the instruction booklet and divide the two. Then they have to translate the result into an "applicable figure," also found in the instruction booklet, and then do a couple more calculations. 
That's just to get through Part 1. 
It gets even more arcane from there. At one point, the instructions say: "If you checked the 'No' box on line 6 or you are using filing status married filing separately and Situation 2, earlier, does not apply to you, skip columns A through E, and see Column F, later." 
Simple, right? 
And in the end, millions will find that their subsidies were too big and they owe money to the government. In fact, H&R Block figures that as many as half of those who got ObamaCare subsidies last year will owe some of it back. 
Then there are those who went uninsured last year and now must pay a tax penalty. They'll need to fill out their own form. If they want an exemption, still more paperwork. ...
Obamacare really is the gift that keeps on giving.  Who can forget these classics where party girls are used to help sell insurance: