Before repeal IRS said it applied to nearly 4.7 million households…
(Joshua Paladino, Liberty Headlines) As Democrats seek to reinstate Obamacare‘s individual mandate tax on people without health insurance, Americans for Tax Reform (ATR) calculated how much the regressive penalty would hurt middle- and lower-class Americans.
Republicans repealed the individual mandate in 2017 with the passage of the Tax Cuts and Jobs Act, but all Democrats in both chambers of Congress voted to keep the tax, which ATR describes as “one of the most regressive taxes in the code,” since it targeted American citizens and legal residents who were unable to purchase health insurance, ATR reported.
If American citizens and legal residents refused or were unable to buy health insurance, then the IRS assessed a $700 tax on individuals and a $2000 tax on families.
In the last year before the individual mandate tax’s repeal, the IRS said it applied to nearly 4.7 million households in the country.
Throughout America, about 74 percent of households and individuals that were forced to pay the tax earned less than $50,000 per year, while 32 percent who paid the individual mandate tax earned less than $25,000 per year.
Middle- and low-income earners in Michigan, Pennsylvania, and Wisconsin will face the biggest hardship if the Democrats — who hold the House of Representatives — gain control of the White House and Senate and reinstate the tax.
In Michigan, nearly 133,000 households would have to pay the poor-tax for not being wealthy enough to afford health insurance. Of these households, 81 percent earned less than $50,000 per year while nearly 40 percent earned less than $25,000 per year.
Even more low-income Pennsylvanians would have to pay the tax. Nearly 56,500 households, or 37 percent of those who would pay the tax, make less than $25,000 per year, 121,100 households, or 79 pecent, of those who would pay the tax make less than $50,000 per year
Wisconsin’s citizens and residents would be in a similar situation, with the largest portion of the individual mandate tax falling on 62,440 families and individuals who earn less $50,000 each year. About 78 percent of the population paying the tax falls into this middle-income bracket.
An additional 24,550 households, or about 31 percent of those who would pay the tax, earn less than $25,000 per year.