Employees Share - Obamacare

[Snaggletooth]

Unless I'm sadly mistaken, Obamacare limits the amount of employee contribution for an employers' health insurance to 9.5% of household income. Easy question and answer here, household income of $50,000 means employer cannot raid this paycheck for more than $4750 per year.

But the question gets harder. Imagine being the employer and trying to figure this one out!!!

O.K. Congress, just what do you mean, "household income?" Is this taxable income? Or does it include non-taxable income such as disability and child support? Does it include both spouses? Does it include children's income?

The question gets harder still. Define household income, and then answer how this income is going to be tracked!! Court awards poverty-stricken spouse $800/mo child support, so does this add $9600 to her "household income"? What if ex-husband leaves town and doesn't pay child support? Who keeps up with it - the ex-wife? Who verifies it??

I can't help but thinking the IRS will turn to the tax preparation industry when this boondoggle fails.

[Jiggers]

I can't help but thinking the IRS will turn to the tax preparation industry when this boondoggle fails.

What about illegals who work and do file a return? Illegals are exempt from the mandate.

What about those that change jobs? May be covered at one job, may not be covered at another. So is the penalty pro-rated for months without? Another IRS form?

What about those that are so wealthy that they are self-insured and absolutely don't need health insurance? Does the penalty apply?

[Gary2]

I can't help but thinking the IRS will turn to the tax preparation industry when this boondoggle fails.

Having made the decision to be in a service profession that earns income by assisting people with bureaucracy (when the underlying bureaucracy serves a purpose), I see no problem just because additional work is thrown our way. Of course, that's just the work, not any additional, unfair liability put onto us.

What about those that change jobs? May be covered at one job, may not be covered at another. So is the penalty pro-rated for months without? Another IRS form?

What about those that are so wealthy that they are self-insured and absolutely don't need health insurance? Does the penalty apply?

FWIW, the MA Sch. HC can expand from 1 to 3 pages for part year coverage and other issues.

As for individuals who are so wealthy that they can legitimately self-insure, they'll just figure the tax as part of the cost. It will still be much less than actual insurance costs. I doubt there will be much sympathy for the Buffets, Gates, or Cooks on this one.