From The Foundry:
Yesterday, the Congressional Budget Office (CBO) released a new report that determined that even more Americans than previously estimated will be hit with Obamacare’s ever-controversial individual mandate tax, totaling 6 million by 2016.
Of the 30 million Americans whom Obamacare leaves uninsured and without affordable insurance options, 6 million will have to pay the penalty, an increased estimate from 2010. According to CBO, “About two million more uninsured people are now projected to pay the penalty each year, and collections are now expected to be about $3 billion more per year.” The total cost to uninsured Americans will be around $7 billion in 2016 and is projected to be about $8 billion every year from 2017 to 2022.
The tax penalty is calculated in different ways depending on income levels. If they do not obtain Obamacare-mandated health insurance, households with lower incomes will pay a flat dollar amount each year, and those with higher incomes will pay a penalty equal to a percentage of their incomes.
Despite claims made by Obamacare’s advocates that the law will help middle- and low-income Americans, CBO’s table reveals that the distribution of the tax falls heavily on those making less than 400 percent of the federal poverty level (FPL)—meaning the majority of this new tax falls on the very people the law was supposed to help. For instance, a family of four making about $24,600 per year, the projected FPL in 2016, could be subject to this egregious tax penalty.