Thursday, November 12, 2009

You will NOT go to jail if you dont have health insurance under the house bill.

One part of the misinformation going around is that you will go to jail if you don't have or buy health insurance. What the FACT about this is (which i totally am not a fan of, i think is bullshit, but in the terms of shared risk it is necessary, sigh...) is that you will be given a tax if you do not have health insurance. And of course not paying federal income tax can lead to jail time, a total of 100 people went to jail in 2008 for willingly not paying taxes. So the logical connection for opponents is that "If you don't have health insurance you will go to jail" Here are a few pointers - "The additional tax does not apply ... if the person's income is below the threshold for filing a Federal income tax return." "Hardship cases" are exempted from the tax. From Section 501(f) Section 501 a) TAX IMPOSED.-In the case of any individual who does not meet the requirements of subsection (d) at any time during the taxable year, there is hereby imposed a tax equal to 2.5 percent of the excess of- (1) the taxpayer's modified adjusted gross income for the taxable year, over (2) the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer. (b) LIMITATIONS.- (1) TAX LIMITED TO AVERAGE PREMIUM.- (A) IN GENERAL.-The tax imposed under subsection (a) with respect to any taxpayer for any taxable year shall not exceed the applicable national average premium for such taxable year. "Hardship cases" are exempted from the tax. From Section 501(f): (f) REGULATIONS.-The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance (developed in coordination with the Health Choices Commissioner) which provide- [...] (2) a waiver of the application of subsection (a) in cases of hardship, including a process for applying for such a waiver.

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