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Does the Health Care Bill’s Penalty for the Individual Mandate Have Any Teeth?

Lawrence O’Donnell is a liberal that is usually so obnoxious that he is almost unbearable to watch on MSNBC.  However, for the last several months, he has been a major critic of this gargantuan mess that has been called saving Obama’s Presidency the Health Care Bill.  During this time, he has actually seemed very knowledgeable about what was in the bill and couldn’t imagine why the Republicans weren’t highlighting the tax increases more in their opposition (neither could I).  Tax increases that he called, “the largest in history”.

He was on Morning Joe again today and preaching, that while the IRS has the right to levy a penalty against anyone who doesn’t purchase government approved health care, it has, by statue, no authority to enforce the collection of that penalty.  Specifically, he quoted page 331 of the House Reconciliation Bill titled:

Waiver of Criminal Penalties

Any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalties with respect to such failure.

He also went on to claim that it prohibited the IRS from placing liens or taking any other enforcement action. 

When this gets widely know, there will be about six million less folks covered by health insurance.  The healthy, younger folks will remain uninsured until they need insurance which will further drive up insurance rates due to actuarial realities.  Democrats, as usual, will blame the increases on greedy insurance companies and try to make a case for single payer.

COMMENTS

  • ladyimpactohio
    • http://www.thesubstratum.com GJ Merits

      They will bail-out the too big to fail insurance companies and you will end up with RINOCare, or government backed insurance cartels. Either way, your screwed.

      And the mandate is just a front. It was recently discovered that Amish, Christian Scientists, Muslims, and Scientologists are exempt from the mandate based on conscientious exemption grounds. All other Christian denominations and those of the Jewish faith are not. The liberals want the courts to strike this down.

  • http://www.dcworksforus.com Kenny Solomon

    If my e-mail address changes to eeeeeviljooooooooooo@femacamp.com, then it has teeth.

    ;)

  • izoneguy

    Kinda reminds me of Howard Hughes Spruce Goose….

    • larueladue

      At least momentarily…

      And anyway, it was way better engineered than the health care bill POS….

  • Menlo

    I’ve written on it from the time the bill passed the Senate. It is certainly true that there is no penalty for failing to pay the “penalty” for not getting insurance. It’s not treated the same as nonpayment of taxes.

    With the possible exception of withholding a refund, there is nothing the government can do to people like myself or anyone else who defies this.

    I don’t understand why anyone who didn’t want it would obey it. That would be an incredibly stupid thing to do if you ask me.

    • JSobieski

      The lack of a citation on that point doesn’t inspire confidence. Even if true, money is a commodity, so if the IRS determines that you owe a balance of $X, the IRS could deam that the $X represents unpaid taxes, and not an unpaid HCR penalty.

      The application of a particular monetary amount to a particular line item is an art that is subject to all sorts of potential creativity.

      • acat

        They could, however, deduct what you owe from any refund you may get. (for those of us who usually end up owing, this is an empty threat)

        They could also subject you to an audit. (while unpleasant, most citizens have nothing to fear)

        The catch for me is that, so far, it’s still cheaper to pay for health insurance than it would be to pay for health care. (downside to living an active life – the mileage takes its’ toll) With the inevitable jump in health insurance rates, I’m watching for the tipping point.

        Mew

      • Menlo

        They are explicitly barred from that in the bill. As acat says below, they can only take it from a refund if you are owed one.

        • JSobieski

          nt

          • Menlo

            I wrote about it here. Starting on page 336, section 5000A(g) paragraphs (1) and (2).

            It’s also been in some recent mainstream media articles, though I can’t recall which off the top of my head.

          • JSobieski

            A lien is not a garnishment.

          • JSobieski

            Which means that people will game the system big time.

          • izoneguy

            If not – vote conservative…..

          • Menlo