‘‘SEC. 59B. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.
‘‘(a) TAX IMPOSED.—In the case of any individual who does not meet the requirements of subsection (d) at any time during the taxable year, there is hereby imposed a tax equal to 2.5 percent of the excess of—‘‘(1) the taxpayer’s modified adjusted gross income for the taxable year, over ‘‘(2) the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer. ...upto the extent said citizen would have paid a premium for health insurance or any portion thereof, if not insured for a fraction of the calender year.
I think that is fairly self explanatory.
This is interesting. Page 170, lines 1 through 3. Non-Resident Aliens are included in the bill therefore they will have no penalties as they will have no legislated benefits. Hello?
‘‘(2) NONRESIDENT ALIENS.—Subsection (a) shall not apply to any individual who is a nonresident alien.
There are provisions for USA citizens living in USA possessions or outside the USA. They are treated as legal citizens and are provided for under this bill.
The religiously 'inclined' are not impressed to submit to this bill. Page 170, lines 19 though 25 and Page 170, lines 1 through 4. It includes the relief of responsibility for health insurance of their children as well. We all know there are times when children are taken into 'state custody' to provide health care and when that happens, it is the State that provides for the cost as well. So, this really isn't anything earth shaking, except, they are not pressed into civilian obligation where it intersects with religious belief. That religious affiliation has to be documentable to the Secretary.
‘‘(5) RELIGIOUS CONSCIENCE EXEMPTION.—
‘‘(A) IN GENERAL.—Subsection (a) shall not apply to any individual (and any qualifying child residing with such individual) for any period if such individual has in effect an exemption which certifies that such individual is a member of a recognized religious sect or division thereof described in section 1402(g)(1) and an adherent of established tenets or teachings of such sect or division as described in such section.
The bill goes on redundantly stating the same definitions apply and provisions apply, yada, yada, yada. It does say on Page 175 there won't be actions taken against 'minimis lapses of time.' There are provisions for penalties if one fails to file their health care compliance on tax forms. More definitions and compliance issues including the allowance of different instruments for full time and less than full time employees. Reiteration of the same provisions and definitions just for this section of the bill. There is a fair amount of redundancy simply because it is stated for each provision of the bill. It has to be. It is a binding legal document that will impact people's lives, so it has to be clear.
There are provisions beginning on Page 188, line 19 for small businesses:
‘‘SEC. 45R. SMALL BUSINESS EMPLOYEE HEALTH COVERAGE CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 38, in the case of a qualified small employer, the small business employee health coverage credit determined under this section for the taxable year is an amount equal to the applicable percentage of the qualified employee health coverage
expenses of such employer for such taxable year.
‘‘(b) APPLICABLE PERCENTAGE.—
‘‘(1) IN GENERAL.—For purposes of this section, the applicable percentage is 50 percent.
‘‘(2) PHASEOUT BASED ON AVERAGE COMPENSATION OF EMPLOYEES.—In the case of an employer whose average annual employee compensation for the taxable year exceeds $20,000, the percentage specified in paragraph (1) shall be reduced by a number of percentage points which bears the same ratio to 50 as such excess bears to $20,000.
‘‘(c) LIMITATIONS.—
‘‘(1) PHASEOUT BASED ON EMPLOYER SIZE.—In the case of an employer who employs more than 10 qualified employees during the taxable year, the credit determined under subsection (a) shall be reduced by an amount which bears the same ratio to the amount of such credit (determined without regard to this paragraph and after the application ofthe other provisions of this section) as—
I believe what this section states, is there is a 50% credit for small businesses that employ few people of have a small payroll. These businesses can take a credit as much as 50% of the cost of the insurance. As an example, let's say an employer has 10 people he employs and the annual health care cost is $60,000 for his family and that of his employees. This policy has been purchased from a pool whereby there are many more employers subscribing to the same 'certified plan.' The employer would be able to take an additional $30,000 CREDIT for simply going through the trouble of insuring themselves and their employees. I am fairly sure that is how that reads. It's nice. Can't complain about that.
There would be an exception to that in an employee that was making a salary of $80,000 which places them above the $68,000 that would qualify them for compensated care; cannot be taken as a credit to the employer as the individual can provide for their own health insurance at that income level.
Page 192, lines 11 through 19 provide for self employed and partnerships:
‘‘(1) SPECIAL RULE FOR PARTNERSHIPS AND SELF-EMPLOYED.—In the case of a partnership (or a trade or business carried on by an individual) which has one or more qualified employees (determined without regard to this paragraph) with respect to whom the election under 4980H(a) applies, each partner (or, in the case of a trade or business carried on by an individual, such individual) shall be treated as an employee.
There are further definitions of Aggrigate Rule, Denial of Double Benefit, Inflation Adjustment and Credit to be part of a General Business Credit. Primarily all this is substitution of existing language in other codes of government law.
I'll stop there for now. The next section starts, "Disclosures to Carry Out Health Insurance Exchange Subsidies."
I really see this as a well thought out legislation. I believe it covers details I would not have expected and it does it with a great deal of care knowing people's health are tied to its passage as law. I like the bill. I like it alot. It is security.
Tomorrow is another day.
