Friday, February 1, 2013

Obamacare Blows up in Unions' Faces

Wow.  Who could have predicted that a 2,700+ page law drafted by lobbyists and passed by a Congress that didn't read it would have unintended consequences?  The country is in the best of hands.  NOT.

In the first story linked below the new IRS Regulations explain the CHEAPEST insurance available under Obamacare for a family of 5 will be $20K per year.  Here's an excerpt from the actual regulation calculating the penalty (or TAX according to the US Supreme Court) you will pay if you don't purchase an Obamacare sanctioned policy.

“Example 3. Family without minimum essential coverage. 
"(i) In 2016, Taxpayers H and J are married and file a joint return. H and J have three children: K, age 21, L, age 15, and M, age 10. No member of the family has minimum essential coverage for any month in 2016. H and J’s household income is $120,000. H and J’s applicable filing threshold is $24,000. The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000. 
"(ii) For each month in 2016, under paragraphs (b)(2)(ii) and (b)(2)(iii) of this section, the applicable dollar amount is $2,780 (($695 x 3 adults) + (($695/2) x 2 children)). Under paragraph (b)(2)(i) of this section, the flat dollar amount is $2,085 (the lesser of $2,780 and $2,085 ($695 x 3)). Under paragraph (b)(3) of this section, the excess income amount is $2,400 (($120,000 - $24,000) x 0.025). Therefore, under paragraph (b)(1) of this section, the monthly penalty amount is $200 (the greater of $173.75 ($2,085/12) or $200 ($2,400/12)).
"(iii) The sum of the monthly penalty amounts is $2,400 ($200 x 12). The sum of the monthly national average bronze plan premiums is $20,000 ($20,000/12 x 12). Therefore, under paragraph (a) of this section, the shared responsibility payment imposed on H and J for 2016 is $2,400 (the lesser of $2,400 or $20,000).”
Got that?  Easy peasy, lemon squeezy right?

The second story, regarding the Union remorse, comes from Professor Meade - who spent the last 2 years analyzing the imploding blue model of governance - and he concludes as follows:

This aspect of Obamacare typifies everything that’s wrong about the fraying blue model. First the government establishes control over a huge sector of the economy. Then special interests spend tons of money and political capital to protect themselves from the inefficiencies that control introduces. So far the blue model has kept itself afloat by doling out favors to enough different groups to hold together a fractious political coalition. But as money gets tight, these groups are increasingly fighting over the same rents.

Welcome to the Collaborative Revolution!

James L. Salmon, Esq.
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