Posted on 11/10/2013 5:03:51 PM PST by T Ruth
I will be submitting a new W-4 form to my employer. At the end of next year I will not be owed a tax refund from the federal government. As a patriotic act of disobedience, I am proudly refusing to purchase any health insurance. This would mean that I will be subject to a fine of 1% of my total income (2% the following year, 2.5% thereafter). The awesome thing about that is unless you are due a tax refund, the government will never see a dime of that money.
My choice to not buy health insurance is a choice many people are going to make, either to protest, or once the ObamaCare website is properly up and running and they get a glimpse at the increased cost of the monthly premiums under the Affordable Care Act. During his radio show recently, Rush Limbaugh went into detail about all of this:
Anyway, [my accountant] said to me that, according to the law, the only way that the government can collect the fine or penalty for you not buying insurance is if you are owed a tax refund. If you do not owe a tax refund, they cannot go into your bank account or anywhere else and get that money. Now, the sad thing is that most people file their taxes to get a refund ’cause they think they’re screwing the government, and they’re not. …
Therefore, the only way that they can collect the penalty or the fine is by taking money from your refund. If you are not owed a refund, they cannot get money from you. They can’t issue a lien. They can’t garnish your wages. They can’t use any of the normal procedures available to them if you owe them money, even though the Supreme Court has said it’s a tax. So for those of us — I mean, folks, I’m in fat city. I’m in fat city because I always structure to where I owe money. Well, not entirely. There have been years. But if you structure your taxes so that you do not get a refund, you do not have to buy insurance and you do not have to pay a fine ’cause they can’t collect it from you if you don’t have a refund due.
And that is just another nail in the coffin of Obamacare imploding on itself.
Limbaugh also highlights that in order for ObamaCare to be successful, the program must coerce a few million young, healthy suckers into paying for something they don’t really need. All I need is a catastrophic plan in event the unimaginable happens. Unfortunately, Obama has banned affordable catastrophic plans and is utilizing the mandate as a way to force us into paying for services that we don’t all need like maternity, vision, dental, mental health, and drug and alcohol treatment.
As many as 20 million people could lose their current health insurance coverage because the coverage they are currently happy with has been outlawed under ObamaCare. These ObamaCare victims are certainly going to face higher premiums which they might not be able to buy, or just don’t believe are worth the potential of a 50% to 150% premium increase with a higher deductible.
Remember that you don’t have to pay a fine if you legally ensure that at the end of the tax year you are not owed a refund from the federal government.
Fight back!
Die.
Then, going Amish
You should do this anyway. Otherwise, you are giving Uncle Sam an interest-free loan.
Young people these days seem to be by and large in low end jobs.
I assume most of them become new Medicaid enrollees, or on the max subsidy with 57 bucks a month payment.
Of course even that may be more than they’re willing to pay.
You could also let your utilities be turned off once a year. Having your utilities turned off is a valid excemption from Obamacare, it seems.
Get elected.
So, that means, there is no line on the 1040 that adds in the penalty?
It’s a tax. John Roberts told us so.
They WILL collect that tax.
“I haven’t checked the actual statute, but I have seen many similar comments. There doesn’t seem to be much downside risk to adjusting your withholding so as to have a small balance due, rather than a refund. “
I don’t know why it takes a situation like this to prompt anyone to stop using the IRS as a “savings bank.” Getting a refund is simply getting back your own money that you’ve “loaned” the government interest free. Here in good old Marxist California, when they get in a bind, they have resorted to IOU’s to the taxpayers in lieu of actually paying the refunds when they are due. My policy is to always have to pay additional taxes on April 15th, or even some years, October 15th.
Good point.
If you want to hang your hat on the notion that FedGov will NOT change this part of the ACA, I wish you well.
The civil disobedience manifest in not paying the fine (tax?) is commendable. However, you can expect that at some point in the future, the IRS will be unleashed to collect what they think is due, plus penalties, plus interest.
I will not be surprised if Zero and 0baumnists use an EO to make the change. God knows they’ve not been challenged on any other of their anti-Constitutional escapades.
“They WILL collect that tax.”
With penalties and interest. This is the IRS, after all.
Don’t kid yourself, they will go right into your bank account if they have to.
They who have the last laugh, laugh last...
The people (in this country) will always find a way to screw communism over...
What a shame (not really) for those who are too stupid to figure this one out...
The more it looks like Obama will go out with a whimper, the happier I am...
We’ve already adjusted our forms to withhold a little less, with no extra (like we used to), so we will come out as short as possible...
It will probably be the only check(s) I’ll ever write to the IRS with a smile on my face...
this what i understand too.
interesting on how EIC will work.
the huge refund (yea i know) will be reduced??
Interesting question, since most of those EICs are grabbed right away (you see all the fast tax offices pop up in the ‘hood) in January. And isn’t the Obamacare deadline in March?
I may be wrong, but I think the law was written that the penalty could only be taken out of any refund due to you from the IRS.
penalties and interest on that $95 will probably end up being $4500 in a years time.
Everybody needs to remember that they are still writing and re-writing this thing as they go. Regardless of what was originally passed.
This idiotic strategy will only work if you have withholding and absolutely break even every year on your taxes.
If you break even this year, and refuse to pay the penalty, you will get screwed if any other year you have a surplus.
If you refuse to pay the fine, and then owe money in a subsequent year, your payments will first go to pay off the previous years penalty.
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