Home > News > Obama: “Baucus Bill fine for no health insurance is not a tax”, ABC: “Yes, it is!”, Baucus Bill: “Yes, it is!”

Obama: “Baucus Bill fine for no health insurance is not a tax”, ABC: “Yes, it is!”, Baucus Bill: “Yes, it is!”

September 21, 2009 Leave a comment Go to comments

OUCH!  Politico and ABC (yes, ABC) got him good here.

Does anyone else notice how often that reality gets in the way of Obama?

Stephanopoulos cited Merriam Webster’s Dictionary definition. "Tax — ‘a charge, usually of money, imposed by authority on persons or property for public purposes.’"

"George, the fact that you looked up Merriam’s Dictionary, the definition of tax increase, indicates to me that you’re stretching a little bit right now," said the president. "Otherwise, you wouldn’t have gone to the dictionary to check on the definition….I absolutely reject that notion" that it’s a tax increase.

Hmmm.

Well maybe someone should tell that to the author of the bill.

Because, as Politico’s Chris Frates points out, it’s all right there on page 29 of the bill: "Excise Tax. The consequence for not maintaining insurance would be an excise tax."

To be more specific, if a taxpayer‘s modified adjusted gross income is between 100-300 percent of the federal poverty level, "the excise tax for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or an individual claimed as a dependent) is $750 per year. However, the maximum penalty for the taxpayer unit is $1,500."

If a taxpayer‘s modified adjusted gross income is above 300 percent of federal poverty level "the penalty for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or as an individual claimed as a dependent) is $950 year" — with a maximum penalty of $3,800.

"Exemptions from the excise tax will be made for individuals where the full premium of the lowest cost option available to them (net of subsidies and employer contribution, if any) exceeds ten percent" of their adjusted gross income.

So…it’s not a tax?

President Obama Offers a Taxing Definition – Political Punch

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