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Politico: Limbaugh Right About O-Care ‘Loophole’

From the Politico:

Rush Limbaugh’s guide to dodging Obamacare tax penalty

By PAIGE WINFIELD CUNNINGHAM and RACHAEL BADE | October 25, 2013

Conservative commentator Rush Limbaugh says he’s discovered a sure-fire way to skirt Obamacare’s penalties for failing to obtain health coverage next year – but you’d have to give up a fat tax refund.

Notice that the Politico just can’t bring themselves to admit that Limbaugh was completely right.

The fine for failing to obtain insurance under the so-called “individual mandate,” which starts at $95 or one percent of taxable income next year, will automatically be collected by the IRS from tax refunds. But if you make sure you don’t get a refund, the agency won’t be able to collect the penalty, Limbaugh told listeners.

“[I]f you structure your taxes so that you do not get a refund, you do not have to buy insurance and you do not have to pay a fine ‘cause they can’t collect it from you if you don’t have a refund due — and that is just another nail in the coffin of Obamacare imploding on itself,” Limbaugh said on his show Thursday night [sic], according to a transcript…

Experts say Limbaugh is correct on one point: The IRS lacks teeth in enforcing the individual mandate. The Affordable Care Act prohibits it from using liens or levies to collect the penalties, tools the agency regularly employs to collect other unpaid taxes. Nor can it criminally prosecute anyone for failing to pay up.

In fact, according to Section 1501 of Obama-Care: "In the case of any failure by a taxpayer to timely pay any penalty imposed by this section. Such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure." And that, lest we forget, is the ‘Law Of The Land.’

But the fines can build up, with interest, so ignoring the penalties could come back to haunt negligent taxpayers, some experts said…

What is the interest rate these days? 1% per annum? That is scary stuff.

The issue would be moot for many if trends continue: about 75 percent of Americans actually overpay their taxes and receive average refunds of $2,700 each year…

Taxpayers could, however, personally estimate how much they owe Uncle Sam, giving them control over whether they owe taxes for paying too little throughout the year, are due a refund for paying too much, or are spot-on.  Most taxpayers don’t go through the trouble as it requires a chunk of time and calculations…

In other words, the Politico says most Americans are either too lazy or stupid to pay their taxes more accurately. So the government doesn’t have anything to worry about.

The penalties won’t disappear—they’ll simply add up at the IRS over the years. They could start being collected out of any refunds the taxpayer is owed in any subsequent year, King said. Plus, overdue charges will accrue interest.

The IRS does intend to collect interest on any unpaid penalties, according to industry sources familiar with the issue, although the agency hasn’t issued any official guidance yet. So the sum of the unpaid penalty will keep accruing interest and the liability won’t go away…

Once again, the Politico seems to be unaware of the current low interest rates. Most people could be willing to risk paying 1% per annum to avoid paying this unconstitutional tax.

At least at first, the agency isn’t worrying too much about the unpaid penalties, since it’s dealing with all sorts of other complicated components of the law within its jurisdiction.

“The administration in general is really de-prioritizing the penalty collection,” said the IRS source. “They’re not going to be doing a lot of enforcement there. Wherever they can have a loose and easy interpretation of things, that’s advantageous to the taxpayer.” …

Oh, our sides. Yes, we believe that the IRS will give taxpayers a break whenever they can.

This article was posted by Steve Gilbert on Monday, October 28th, 2013. Comments are currently closed.

6 Responses to “Politico: Limbaugh Right About O-Care ‘Loophole’”

  1. BannedbytheTaliban

    I love how the politico acts as though a tax refund is a gift from the government. They are just giving you back your money because you allowed them to confiscate more then they should have.

  2. “… Limbaugh said on his show Thursday night….”

    Since when is ‘noon’ considered ‘night’?

    Do they have editors at Politico or are they just that stupid, or are they under the impression the Rush’s show is part of the new Fox News Channel primetime lineup?

    There’s a loophole alright. In their thinking.

    • No. They’re that stupid.

    • yadayada

      Noyzmakr – “Since when is ‘noon’ considered ‘night’?”

      Noyz – that’s when the rumor finally got around to them and they heard about what was said during the show. then they got a pull quote from Rush’s website, many hours afterward.

      “true journalism”

  3. You mean there are still going to be people with income to report when Obama gets through with the economy? Boy, that’s some serious Polly Anna you got going on there, Politico ..

  4. Reality Bytes

    The Sultan of Savvy steps up to the plate, points to center field over & smacks yet another one out of the ballpark. Then again, Barry Obama throws like a girl anyway.

    http://www.youtube.com/watch?v=AP4keCkYHYU




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