IRS: Employers Face $36.5K Tax for 'Obamacare Dumping'

[Alan C.]

IRS: Employers Face $36.5K Per Worker Tax for 'Obamacare Dumping'

 

The Internal Revenue Service ruled it will impose a tax penalty on employers of up to $36,500 per worker for dumping employees into the Obamacare exchanges.

 

. . .

 

The IRS ruling is an effort by the Obama administration to stop employers with 50 or more workers from doing what critics of the health law said they would do: pay a penalty for not providing insurance and dump workers into the unpopular Obamacare program.With the Nov. 4 midterm elections looming, the Obama administration could not allow massive waves of employer cancellations before Democrats face an already angry electorate. So the IRS ruled it would slap any employer with a $100 tax penalty per day per worker that used tax-exempt health insurance monies to cut workers a lump check and dump them on the Obamacare exchanges.The new IRS rule comes on the heels of the Obama administration's announcement that it will bail out insurers which participate in the Obamacare program which lose cash.

 

The only way around this is workforce reduction.

[cobra2411]

The whole premise of Kenyacare was that they would get all the young, healthy people who normally forgo insurance to join and pay for all the sick people. Well the sick people showed up, but the healthy people haven't. Due to the rising costs and the availability of "free" healthcare I'm not surprised employers are dumping their formerly insured workers. Workers need to return move value to a company than what they cost. That's simple. Since the customer will ultimately decide what a company can charge for it's products and services there are little options for said company who is stuck in the middle. I say this not to paint the companies as victims, but to show that sometimes business decisions are done in a calculated way with little emotion.

 

Workforce reduction and simple shuttering of said business is IMO the only answer. The people who think we're going to get into an armed conflict are deluded. Simply stop producing and you'll cut off their food supply. I'm making changes in my life to reduce my income needs to approximately 1/3rd of what they were in 2012. It started in 2013, it continues this year and by 2015 I want to reach my goal. Since I'm self employed, once I make my annual limit I'm simply going to sit out the rest of the year.