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Old 07-03-2013, 09:20 AM   #21
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They really have no idea since they didn't read the bill. Somewhat disturbing to see many already trying to game the system. Either obamacare will continue to implode or our healthcare system will. Personally I am voting for our healthcare system.
I agree that people with high net worth and low income (like many on this board) applying for the subsidies is an "unintended consequence" of the ACA, but I strongly disagree that any of us are "gaming the system". The ACA subsidies are actually a tax credit. The job of the IRS is to make sure that we all follow the law and pay every penny of tax we owe. Our right is to pay every penny of tax that we legally owe, but not a penny more. In that sense, I don't think this aspect of the tax code is any different than any other aspect. It's not our problem that the lawmakers didn't think this through.

It's also worth keeping in mind that although many of us are in the situation described above, we are very far from being a representative sample of the general population. The majority of the general population is covered by subsidized employer insurance and couldn't care less about the ACA. And the typical 50-something who has low income and needs the ACA subsidies probably lost his or her job late in their career and doesn't have a lot of assets and really needs the subsidies. So people like us are a small minority and sort of "falling through the cracks", except that in this case it's to our advantage to be mostly overlooked.
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Old 07-03-2013, 09:20 AM   #22
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It can only be used as a deduction if it's more than 7.5% of your income (10% for 2013). There is no such requirement for people who get insurance through their employer.
If you have your own business or are self employed, health insurance premiums may be a tax deductible business expenses.
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Old 07-03-2013, 09:27 AM   #23
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Just to remind people, the government has always been subsidizing health care for people who get insurance through their employers by not requiring people pay taxes on that benefit.
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Old 07-03-2013, 09:34 AM   #24
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Just to remind people, the government has always been subsidizing health care for people who get insurance through their employers by not requiring people pay taxes on that benefit. Most people that buy health insurance on their own don't have this benefit of not paying taxes on their insurance premiums. So to a partial extent, the ACA is providing this benefit to people that buy their own insurance and it balances things out a bit.
Yes, along with many other job benefits. Uniforms, auto allowances, telephone, travel, gifts, etc.
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Old 07-03-2013, 10:28 AM   #25
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Though it's brief, it's a good summary article. Thanks...
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Old 07-03-2013, 03:52 PM   #26
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Originally Posted by DallasGuy
Just to remind people, the government has always been subsidizing health care for people who get insurance through their employers by not requiring people pay taxes on that benefit. Most people that buy health insurance on their own don't have this benefit of not paying taxes on their insurance premiums. So to a partial extent, the ACA is providing this benefit to people that buy their own insurance and it balances things out a bit.
Thanks for the reminder. I think that is a very good point.

I also agree with Which Roger that very few people have high asset and low income. As long as everything is done by the book, I also don't agree that it is gaming the system. No system is perfect.
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Old 07-03-2013, 06:25 PM   #27
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Thanks for the reminder. I think that is a very good point.

I also agree with Which Roger that very few people have high asset and low income. As long as everything is done by the book, I also don't agree that it is gaming the system. No system is perfect.
Also, the few who do have high net worth and low income likely had high income during their w*rking years and therefore paid a big chunk of it in taxes.
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