ObamaCare Could Result in $250 Billion Tax Fraud


ObamaCare really is the gift that keeps on giving. And giving. And I do mean “gift” in the German sense of poison.

Under the Affordable Care Act, premium subsidies—tax credits in ObamaCare designed to defray the cost of purchasing health insurance—will go to some seven million tax filers and flow to households earning as much as $94,000 a year.

The credits are both advanceable and refundable, meaning the IRS will pay them first and verify the claims for them later, what some call “pay and chase.”

Look at the Earned Income Tax Credit. Whether you like this refundable credit or not, the Treasury Department’s inspector general for tax administration reported in April that improper payments account for 21% to 25% of total EITC payments in 2012.

Take the percentage of improper EITC payments and apply it to the approximate $1 trillion we’ll spend on ObamaCare premium credits in the decade beginning 2014. The math shows that we could see between $210 billion and $250 billion distributed to those who shouldn’t get it—because the IRS has no system in place to verify reported household income.

The wealth redistribution train never stops. We’re entering a red reality where the system exists only to be gamed.

  • JDinSTL

    Anyone surprised?

  • Flowerknife_us

    Disposable Income in America will dry up overnight. The Government can only “Tax” those with disposable income. The Insurance Industry has already estimated that “Tax” to double-for all practical purposes.

    Who in America can afford that kind of increase without some other aspect of their lives coming to a grinding, screeching, halt?

    All so that we, the bearers of the burden feel good about ourselves.

    The Country is in for a very rude awakening when they find out exactly what Obama’s definition of “affordable” really means.

  • jeepwonder

    People will find a way, the black market will mange to fill the gaps for the determined. American ingenuity isn’t completely dead.

  • Hotnike

    If you get a serious illness, prepare to die.