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The Affordable Health Care Act | Is your glass half full? Or half empty?

On and on people go. Either loving or hating this new act, also known as Obamacare. Yet I seriously doubt anyone has even read even a portion of it. Our system is broke, except for those who make enough money to cover the rising cost of premiums as well as the deductibles and the portions not covered by the insurer. I have heard many people retort, “this is the first time someone is being taxed for NOT buying something,” – and they have a point, but a different perspective puts a completely different look on this whole tax penalty.

Let’s take a look at this “tax penalty” from a different angle….

Every year I have paid my taxes I am penalized for NOT purchasing a home, and NOT having children. But you say it’s not the same thing? Oh, yes it most absolutely is. Just a different perspective is all. You know, the glass half full or half empty deal.

Taxes. Before we complete our yearly or quarterly tax forms, we start out with a clean slate. We’re all equal until the numbers start appearing. I am going to use two simple and common deductions to show how a change of perspective explain how many of us are already penalized, and you don’t even realize it. Do you have a mortgage? Then you get a tax deduction. Do you have children living at home under the age of 18 that you claim as a dependent? Then you receive a deduction for each of those children.

Different perspective now. I am now starting my tax forms. Now, mortgage tax deduction is already assumed based upon a $100k note at 5% interest, and I have two children who are dependents at home – my tax forms already start out with this deduction given to every citizen. Wait… I don’t have a mortgage, then I pay a penalty for not having a $100k mortgage with a 5% interest. I don’t have children, so I have to pay a penalty and add back those deductions automatically assumed.

Do you see what I’m getting at here? Is the glass half full or half empty?

Another little tidbit…. Let’s say I have $100,000 in a savings account – yeah, stupid to have it in a savings, but I do. I still pay the full amount of taxes on the $100k. Now someone has the same amount of $100k in an IRA – they pay less in taxes. Therefore I am penalized for having the SAME amount of money, but being held in a different place and account.

Choices… all about choices. If you do not want health care, that is a choice. The poverty stricken and unemployed will receive a voucher for care. Don’t want that? Then pay the tax. It is a choice!

There are penalties of all shapes and manners for both having and doing, or not having and doing in our country. For the past several decades, we have all been paying for the uninsured – and rightly so complaining about it. Millions of people without insurance have been asking for insurance, but either they could not afford it, or the company they work for is too small to carry coverage for their employees.

Times have changes. This plan fixes those two, in addition to a plethora of other items such as pre-existing conditions and yearly maximum amounts, and now many are complaining about the change? You no longer will have to pay for the uninsured… it’s up to them to take care of their own insurance and bills – and will pay a penalty to help cover the cost of uninsured care.

And for those whose companies will now be able to afford insurance coverage, and receive a nice tax deduction for doing so, will be able to offer insurance to their employees. If I hear anyone complain, I will do a virtual internet smack up side the head.

What did you want? Health care for free? Sure, it’d be nice, but even I know that is insane and impossible.

Now, is your glass half full or half empty?


Affordable Healthcare Act: Complete PDF copy

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6 replies »

  1. Great way to explain it! I’ve grown very tired of all the misinformation on this. Thanks for helping to clarify.

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