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May 21, 2014

How ObamaCare customers could end up with a big tax bill

IPI expert referenced: Merrill Matthews | In The News | Media Hit
  Fox News Channel's Special Report

The recent change with the agency tasked with overseeing Obamacare is apparently not enough to satisfy some people.

Also tonight, chief national correspondent Jim Angle tells us how Obamacare customers may end up with a big tax bill from Uncle Sam.


JIM ANGLE, FOX NEWS NATIONAL CORRESPONDENT (voice-over): After a roll out so rocky even president Obama apologized. There's another surprise awaiting consumers. If they are receiving subsidies and their income changes, they may own a bundle to the IRS.

ALYENE SENGER, HERITAGE FOUNDATION: If you think living their plan was bad, wait until they owe the IRS hundreds of thousands of dollars.

ANGLE: The vast majority receive subsidies so this could affect hundreds of thousands whose income change over the years because of overtime and Christmas bonus or promotion.

SENGER: $500 bonus isn't worth it if you are going to lose $6,000 worth of Obamacare tax credits.

ANGLE: Thos of lowest incomes would have repayment's captive lower levels. But those who exceed the maximum for subsidies about $94,000 for a family of four would have to return every last dollar. The problem is the administration still hasn't fixed the infamous back end of the computer system that verifies such things, so insurance companies bill what they think is right.

JAMES CAPRETTA, ETHICS & PUBLIC POLICY CENTER: The major insurance companies in the United States are sending a bill, an invoice to the treasury saying here's how much you owe us for subsidies for the month of April and the treasury is simple writing a check on that basis.

MERRILL MATTHEWS, INSTITUTE FOR POLICY INNOVATION: Because they didn't develop the back end, they still don't have it developed and it's not clear it's going to be developed any time soon.

ANGLE: On top of that, some supporters of the law are calling for the president to appoint a CEO to manage both the federal and state exchanges, some of which have been miserable failures.

MATTHEWS: I think this is a tacit admission that Kathleen Sebelius failed in her oversight of the implementation of Obamacare.

ANGLE: So supporters want someone to hold accountable other than the president or the administration.

CAPRETTA: But, of course, you can't just create positions in government out of whole cloth. Normally, there needs to be some kind of statutory authorization for these things to have real authority and I don't see how they could do that easily.


ANGLE: Officials say income discrepancies aren't surprising since this is a new process. But for now, any fixes will be done by hand. What one critic calls an accounting nightmare, and the house is demanding a briefing no later than June 2nd.



  • TaxBytes-New

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