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User Info Beaker! (Podcast); entered at 2020-01-12 14:02:39
Tickerguy
Posts: 161148
Registered: 2007-06-26
@Whitehat - No, Obamacare was designed to coerce states into taking the expansion. It's a black hole for those states that did it though because the federal subsidy for it disappears; that "extra kick" was only there for a few years! While the state can "take it back" go ahead and try to do that with ANY "freebie" handout and see how long you live before the riots start.

The coercion they decided on (since they couldn't MANDATE it; that's unconstitutional) was to create a "hole" below the Medicare eligibility threshold. If your income is below that you don't have to buy insurance (even when the penalty was in force) because the cost WILL be above the 'no penalty' threshold, BUT you get no subsidy at all! This makes it flatly impossible for anyone below that cutoff to buy an Obamacare policy because they have to pay for the whole thing. The PROBLEM this creates is that for someone with unstable income where they MIGHT be under the threshold on 12/31 for the full year is obvious; unless you're very sure you can clear that threshold you're in serious **** if you guess wrong as the subsidy disappears but it was paid during the year, and when you file your taxes and do the worksheet for it YOU HAVE TO PAY THE SUBSIDY BACK.

The same rape-job happens going the other way and it's bit me a couple of times -- not horribly, but it has. Every year you have to estimate your earnings for the next year. Let's say I estimate my MAGI will be $23,000. Ok, based on that guess the IRS pays a subsidy to the insurance company every month, which is based on the cost of a specific plan (I think it's the "2nd lowest Silver plan in your area" or somesuch) derated by the ratio between your income at the low-income cut-off and the high-income subsidy phase-out. Let's presume that I guess $23,000, the high-income phase-out is for a single person is at like $44k, and the resulting determination is that I quality for a $750/month subsidy. Now I choose a plan that costs $800 but I only pay $50 a month -- the rest is sent to them by the IRS.

Now tax time comes but during the year I had someone come to me and want to hire me to do some contract work, and I made an extra $10,000. I'm ****ed, because when I go to file taxes my MAGI isn't $23,000, it's $33,000! The calculation gets re-run for the "actual" .vs. my guess, and the difference is either paid to (or in this case) demanded from me -- right now.

So come April 15th I may well have to fork up $4-5k! I better not have actually spent any of that contractor income eh? Oh by the way I also have to pay FICA tax on that -- both halves -- too.

Now the FICA surprise is one we all know about but this one is a huge ass-ramming and it's typically a LOT more. Like TRIPLE.

It's also why I don't do contract work anymore and why I have ZERO interest in standing up a small business to market HomeDaemon. I'll go take my final dirt nap with the code on an encrypted disk before I'll put up with that ****.

I'll take the $25/month subsidized deal but I would have NEVER BOUGHT IT IN THE FIRST PLACE for $800/month. Yet the IRS can and WILL force me to do so, just like the ****ing Hospital does by refusing to give me a price until AFTER THE FACT, if my guess is wrong or I advance in my earnings capacity by making an effort.

**** them, **** Trump, **** Congress and **** the economy -- I'll sit at home and play with myself instead of putting up with that bull****.

Last modified: 2020-01-12 14:05:16 by tickerguy

2020-01-12 14:02:39