New Healthcare Plan will Burden the IRS

Last updated on September 18, 2015

The controversial healthcare plan put forward by President Barack Obama and upheld by The Supreme Court will put more burden on the IRS. Now, the IRS will need to enforce the new healthcare plan, a role which it is not comfortable doing.

Steven Miller, IRS deputy Commissioner, said, “We will not use levies, liens or criminal prosecutions if taxpayers have unpaid amounts related to the individual-coverage provision. There will not be revenue agents involved in this. These will not be audits.”

Under President Barack Obama’s healthcare plan, every American will need to have health insurance. If they do not, they will face penalty. The plan has been facing still opposition. Republicans, twenty-six states and the public have showed their displeasure with the plan.

Some are speculating that the penalty for non-compliance is so little that most Americans will prefer to pay the penalty and not buy health insurance. But that will only be a temporary relief. According to experts, the penalty gradually will increase to $695 a person by 2016, with the maximum amount being the greater of either $2,085 per household or 2.5 percent of the household’s income.

According to sources there are around 3.9 million uninsured Americans. U.S. Chief Justice, John Roberts, said that “because the Constitution permits such a tax, it is not [the court’s] role to forbid it, or to pass upon its wisdom or fairness.”

President Barack Obama celebrated the victory saying that “for people all over this country whose lives will be more secure because of this law and the Supreme Court’s decision to uphold it.” He added that illnesses and accidents should not be the reason for a family’s financial ruin.