A group of governors has warned Texans and all Americans that the U.S. Supreme Court’s decision to uphold President Barack Obama’s Affordable Care Act will lead to the expansion of the power of the IRS.
The justices’ recent ruling means that the court upheld requirements in the act that Americans must pay a tax to the Internal Revenue Service if they fail to buy medical insurance. That, some of the nation’s governors said, will broaden the powers of the IRS.
One governor said the court’s decision could turn into $500 million in new revenue to be collected by the IRS, which will have increased powers of enforcement and governance over Americans.
Under the health care act Americans will need to provide proof of health insurance on their income tax returns. The IRS will impose penalties on some taxpayers who fail to buy insurance as well as on some businesses that do not offer health care coverage to employees. The IRS’ role will require new computer software, forms and publications.
In all, the IRS could spend $881 million on the law through 2013. That would fund 2,700 new employees, and an upgrade to the IRS computer systems.
The penalty for those who do not have insurance will take full effect by 2016 and will total $695 for each adult or 2.5 percent of a family’s income, whichever is most, with a cap at $12,500. Only those who are low income, belong to an American Indian tribe or have certain religious beliefs will be allowed an exemption from the insurance requirement.
Americans must pay taxes, but is it in Americans’ best interest to have the IRS oversee health care, as well?
Source: Huffington Post, “Bob McDonnell, Virginia Governor, Says IRS Will Have More Power Over Citizens,” John Celock, July 13, 2012