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Why the IRS Should Not Be in Charge of ObamaCare

The recent revelation that the IRS was engaged in targeting political groups based on ideology has put a spotlight on the unchecked power and scope of that organization. Yet, in 2014, the IRS will assume control over vital functions of ObamaCare - and, therefore, your health care.

The following is a breakdown of how the IRS will be able to meddle with your health care, and why this is a terrible idea.  These points are available in a handy printout at the bottom this post.

Why the IRS Should Not Be in Charge of ObamaCare

Already Too Powerful

  • IRS has 97,000 employees and a requested budget of $12.8 billion (FY 2013).
  • IRS will wield 47 new powers and duties under ObamaCare. (See reverse.)
  • IRS has requested 2,000 more agents to help implement ObamaCare in 2013 alone.

Politically Abusive

  • IRS has admitted to targeting Tea Party groups for discriminatory political treatment.
  • Almost 500 conservative groups have reported their c4 tax-exempt status was delayed up to three years.

Arrogant

  • White House Sr. Advisor Dan Pfeiffer sniffed: “The law is irrelevant” regarding the targeting scandal.
  • Ex-IRS Commissioner Steven Miller says the solution is a bigger budget: “It would be good to have a little budget that would allow us to get more than the number of people we have.”

Threatens Our Privacy

  • IRS will use a massive new database (“Federal Data Services Hub”) to collect info from IRS, HHS, DHS, DOJ, and States, for ObamaCare enforcement.
  • IRS was sued recently in Calif. for illegally seizing the medical records of 10 million Americans.

Solution: Tax Reform

  • Problem: 73,000 pages of tax regulations, rife with special-interest giveaways and corporate handouts.
  • Solution:

1) Pass H.R. 2009, the “Keep the IRS Off Your Health Care Act” (Rep. Tom Price, M.D.).
2) Enact real tax reform — such as a Flat Tax—to de-politicize and defang the IRS for good.

Meet Your New Doctor, the IRS
ObamaCare grants IRS no fewer than 47 new duties and enforcement powers, including:

Mandates

  • Individuals: IRS will levy new penalties on individuals who don’t buy government-approved insurance. Annual fines = greater of $95 per adult or 1% of income (2014); $325 or 2% (2015), $695 or 2.5% (2016); and indexed thereafter.  Fine for uninsured children = ½ adult fine.
  • Employers: IRS will level new tax penalties on businesses with over 50 full-time employees who fail to offer health coverage (fine = $2,000 per employee after first 30 employees) or fail to offer “affordable” coverage (fine = $3,000 per employee if coverage costs >8.5% of that worker’s income).

Subsidies

  • IRS will administer billions in new subsidies for people who buy insurance through government “exchanges.”

Information

  • In order to administer subsidies, IRS will collect massive amounts of personal data from numerous sources.

Revenues

  • New 10% tax on indoor tanning services (2010)
  • New taxes and limits on HSAs and FSAs (2011)
  • New “industry fee” on health insurance premiums for “comparative effectiveness” research (2012)
  • New 2.3% tax on all medical devices (2013)
  • New 3.8% surtax on home sales and other investment income (2013)

 

Credit: Josh Withrow (@JGWithrow) and Dean Clancy (@DeanClancy) contributed to this post.