Friday, September 3, 2010

6: Obama Accounting: Levying Taxes & Liens Under the Pretense of "Consumer" Health Care Reform?

The pie chart to the left describes the "Federal Dollar": 47 cents of each dollar comes from individual taxpaying Americans. This is the light-blue shaded right half of the circle. An additional 35 cents also comes from individuals who pay "social insurance payroll" taxes. 82 cents of every US federal government dollar comes from individual income and payroll tax deduction taxpayers.

The underlying plan of ObamaCare, Patient Protection and Affordable Care Act, March, 2010, is to increase federal revenue with penalties, fees, and fines paid to the IRS by the individual taxpayer who does not want to buy insurance or cannot afford the insurance mandate and who does not want to risk losing home and assets to insolvency by "signing up" for the welfare medical card, Medicaid.

The House of Representatives Ways and Means Committee staff recently estimated the IRS would need to hire 16,500 new agents over the next decade and spend an additional $10 Billion dollars to enforce the health care insurance mandate.

IRS representatives speaking at the National Press Club, posted by, April 7, 2010, stated the IRS would work with both the Department of Health and Human Services (HHS) and insurance companies to investigate Americans for compliance with the insurance mandate. The IRS plans to require taxpayers to attach a "Yes/No" insurance form from their insurance provider to their annual tax return. The IRS then "will run a matching program around that". If the taxpayer doesn't have coverage, the IRS will notify the taxpayer how much is owed to the IRS for the insurance mandate penalty.

Changes in health care companies or coverage, even among those who comply, could create financial nightmares for taxpayers as the IRS seeks to maximize penalties, fees, fines, and interest for Department of Treasury/IRS revenue through health care insurance coverage issues. IRS could initiate liens and levies against taxpayer bank accounts, homes, and other assets.

Obama's promise of "universal health care" has been broken. There always has been universal "access" to health care. Every American can buy health care insurance, at regular or "high-risk" rates, or apply for the welfare medical card known as Medicaid.

Nor has Obama been "transparent" in discussing health care reform. The implication of "universal health care" as free, available to everyone, unlimited free-market state of the art and science medical care, was an empty promise enticing financially pressured voters to the polls to vote for Obama and the Democratic Party.

"Free universal health care" continues to be available only to welfare recipients. Now working and middle class Americans have been given an ultimatum to purchase health care coverage or risk the financial embarrassment of IRS levy and lien, or risk insolvency and loss of house and assets by "signing up" for welfare Medicaid.

Most working and middle class Americans who earn less than $100,000 already do have government-monitored and managed health care insurance Medicare accounts. These employees "pay in" to Medicare through the payroll tax deductions taken from their paychecks by their employers, which are to be forwarded to the federal Medicare fund. No mention is made of how these paid Medicare premiums would be credited or factored in to the insurance mandate.

The proposed change from "free market" to a vague "rationed" health care system through Medicare and Medicaid makes the insurance mandate an even less attractive health care plan to the average taxpayer as patient/client/customer.

Graphic: The US Federal Government Dollar from the World Book Encyclopedia, 2003.
Where the federal dollar comes from:
47 cents Individual income taxes,
35 cents Social insurance payroll taxes
10 cents Corporate income taxes
03 cents Excise taxes
04 cents Other

Other references:, National Press Club video archives.

email or to request a copy of this blog or other blogs posted by mary for monthlynotesstaff on or on