Both the Senate and House versions of the proposed health care bill include provisions that would require a majority of Americans to have health insurance or face a financial penalty. It would be the IRS’ job to enforce this legislation. They would require Americans to provide proof of their coverage on their federal tax returns. Those who don’t would face a monetary penalty. It would be the IRS’ job to go after those who decline health care coverage.
In addition to monitoring tax returns, the IRS would be responsible for distributing as much as $140 billion in annual subsidies to help small businesses and lower-income people buy coverage. The IRS would also be in charge of collecting hundreds of billions of dollars in new fees on employers, drug companies and device makers, according to the Congressional Budget Office (CBO).
The big question is – can the IRS handle these additional roles? In recent years, the IRS has suffered from budget problems, staffing shortages and outdated computer systems. This is in addition to the difficulty the IRS faces with collecting taxes that are due. According to the IRS, they failed to collect about $290 billion in taxes in 2005.
The CBO estimates that the IRS, with their yearly budget of $11.5 billion, will need $5 to $10 billion to cover their expanded role. So far, neither bill has taken this increased cost into account nor there is no language anywhere to increase the IRS’ budget.
Printer-friendly version
Questions are all good and
Questions are all good and are just the tip of the iceberg. If (still the optimist) we see passage of a bill, the implementation will be a nightmare.
Has anyone stopped to ask if they are willing to share their family finances with their employer. Think about it, the only way that you can qualify for a subsidy of employer based coverage is based on total family income. So, who is willing to tell their boss what thier spouse earns?
We already have a great deal
We already have a great deal of underground businesses, where workers are paid in cash. This type of system will only increase that in the future in my opinion. How will any institution be able to monitor this? When someone goes into the emergency room? And undocumented income - do you think those people will file tax returns?
Also - here in California, I have several doctor friends who have stated that they will retire or not take government plans AT ALL. They have told me that they just can't afford to operate at what the MediCare/MediCal reimbursements are currently.
There are no easy answers, that is for sure.....
Quesion: What happens to the
Quesion: What happens to the millions of people who are here illegally and use our healthcare system? Who will fund them when we are all mandated to carry insurance?
Can you still force the carriers to pay a portion of that? Are you still going to charge us in taxes to fund that? This needs to be addressed.
Post new comment