The penalty/tax will be phased in from 2014 to 2016. The minimum penalty/tax in 2016 will be $695 per person and up to 3-times that per family. After 2016, these amounts will increase at the rate of inflation. The minimum penalty/tax per person will start at $95 in 2014 (and then increase through 2016) No family will ever pay more than 3X the per-person penalty, regardless of how many people are in the family. The $695 per-person penalty is only for those who make between $9,500 and ~$37,000 per year. If you make less than ~$9.500, you're exempt. If you make more than ~$37,000, your penalty is calculated by the following formula... The penalty is 2.5% of any household income above the level at which you are required to file a tax return. That level is currently $9,500 per person and $19,000 per couple. The penalty on any income above that is 2.5%. So the penalty can get expensive quickly if you make a lot of money. However, the penalty can never be more than the cost of a "Bronze" heath insurance plan purchased through one of the state "exchanges" that will be created as part of Obamacare. The CBO estimates that these policies will cost $4,500-$5,000 per person and $12,000-$12,500 per family in 2016, with the costs rising thereafter. So, basically, you're looking at penalties of approximately the following at the following income levels: Less than $9,500 income = $0 $9,500 - $37,000 income = $695 $50,000 income = $1,000 $75,000 income = $1,600 $100,000 income = $2,250 $125,000 income = $2,900 $150,000 income = $3,500 $175,000 income = $4,100 $200,000 income = $4,700 Over $200,000 = The cost of a "bronze" health-insurance plan Read more: http://www.businessinsider.com/how-much-is-the-obamacare-penalty-tax-2012-7#ixzz2aBIhPH8O
Affordable Care Act > Affordable Care Act FAQs > What’s the penalty for not having health insurance? What’s the penalty for not having health insurance?June 26, 2013 The tax penalties go into effect in 2014, which means, if you’re uninsured for more than three months in 2014, you may incur the tax penalty and that penalty would be applied when you file your 2014 income tax return. If you don’t qualify for an exemption to the Affordable Care Act’s mandate to purchase qualifying health coverage, then you will be subject to a tax penalty. The penalty is phased-in over a three year period. In 2014, the penalty will be the greater of 1.0% of taxable income or $95 per adult and $47.50 per child (up to $285 per family). In 2015, the penalty will be the greater of 2.0% of taxable income or $325 per adult and $162.50 per child (up to $975 per family). In 2016, the penalty will be at the greater of 2.5% of taxable income or $695 per adult and $347.50 per child (up to $$2,085 per family). After 2016, the penalty will be increased annually by the increase to the cost-of-living. Households with incomes above 400% of FPL will be exempt from paying tax penalties if insurance in their area costs more than 8% of their taxable income, after taking into account employer contributions or tax credits
For employers, it's about $2,000 per employee. As opposed to providing the benefits and paying what's required - which is closer to $6,000 per employee.
Except now there is no employer penalty. See, under our Dear Leader, the law is what he says it is rather than what's passed by Congress and signed by the President. Just lay back and enjoy it. Our Sun King knows what's best for us.
true..if you are a big enough contribuitor to the party, you can get an exemption..just the average small business that will get nailed
the only state that is projected to go down is in NY, and that is only due to how jacked their system has been in NOT allowing out of state competition etc
So let me get this straight, the employer will not have a penalty for offering insurance, but the tax payer that makes an income of over 9k will if they don't? 9k a year is less than a grand a month. That's like small time work force
The employer with over 50 employees won't face a penalty, because President Obama is choosing not to enforce part of the law. However, the individual mandate stands. But Barack is for the little people!
I have insurance, but if I were faced with that choice, I would purchase insurance (so to speak--I would actually join up with medishare, which is basically the same thing, only not).
you are correct. I had forgotten that he had delayed untill past the mid term elections (sound like we have haerd this story) His excuse was that it was being done as part of his economic recovery program, I believe..
