Archive for September, 2013

We The People Can Defund It – There is a Way to Cut This Tyrannical Bill Off At The Knees

Add comment September 25th, 2013

Question is, do you have the stones to actually do it, are you going stand with Ted Cruz, or are you just going keep your PJs on bitching and moaning? I hear a lot of talk about lawlessness and the trampling of the Constitution by this administration, but I don’t see any rubber meeting the road. So, here’s how we can do this with or without the Republicans. Except for Ted Cruz and Mike Lee, I don’t trust most of them to grow a set anyway. And if they want to play parliamentary games and tricks, then it’s time we start f**king with them as well. Especially, when they can’t do anything about it if we all do this.

I can’t take credit for this, however, it does not mean I wasn’t thinking about it. I just couldn’t put it down in writing. Someone else has. So stay with me on this. This is going to be fun with Obamacare and an opportunity to end a badly conceived bill and the convoluted content and use the law to one’s advantage to bring it down at the same time.

This strategy is available to everyone, self employed and laborers working for someone else. You can adjust your W-2 and withholding forms at anytime. Also, the two key elements to consider of Obamacare:

1. There is no punishment for refusing to pay the “Obamacare tax’ imposed on those who do not buy health insurance.
2. No one can be refused health insurance coverage for a pre-existing condition;

The “ObamaCare tax,” of course, is what was formerly called a penalty until Chief Justice John Roberts rechristened it a tax. But whatever one calls it, the bottom line is, the federal government cannot punish anyone, in any way, for refusing to pay it. It can only deduct the tax from your refund. If receive one in the first place.

So, to defund it, you need to arrange your financial affairs so that you when you file your tax return, you’re not entitled to a refund. Easier said than done, perhaps, for the average wage earner, who has a portion of his wages withheld from each paycheck before he receives it. However, it easy, just change your W-2 to withhold less, as much as you can before the employer stops you. The best tactic is to figure out the exact amount to be paid. It can be done because I’ve done it in past. But for those of us lucky (to the extent that paying 15.3% Social Security tax can be considered “lucky”) enough to be self-employed and make quarterly estimated payments, it’s a piece of cake. As the self-employed person, with a variable income, they are not required to magically predict how much they will earn this year and prepay the tax; they’re required to pay only 90% of what they earned last year.

The point being that unless they earn, in any year, less than 90% of what they earned in the preceding year (admittedly, not inconceivable while Obama is president), they will not get a refund. Refunds are overrated anyway. You’re allowing the government to keep money interest free; money you could do better things with. And if you do not get a refund, the IRS has no source from which to seize the tax. Again, there is no punishment, criminal or otherwise, for failing to pay the ObamaCare tax. The government cannot prosecute you, it cannot jail you, it cannot seize your property; it cannot garnish your wages, it cannot do a damn thing.

And the insurance companies cannot refuse to insure you for a pre-existing condition. So if the government cannot punish you for not buying insurance today, and insurers cannot refuse to insure you tomorrow, why be a sap?

When 2014 rolls around and ObamaCare fully takes effect, you can drop your current self-financed catastrophic health-care plan and redirect the monthly payment to a Health Savings Account, contributions (which will no longer be allowed after dropping insurance) to a SEP or Roth IRA. Or maybe just buy something nice. Obama and Bernanke want you to spend, don’t they?

And if you ever do contract some really horrible, catastrophic disease that, say, causes you to lose all of your senses or vote Democratic (pardon the redundancy), you can always, thanks to Obamacare, apply for health insurance then. Heck, you might even get the insurance for free.

More fun to prove that this bill has no teeth.

Except for the decision on the expansion of Medicaid, ObamaCare largely survived the scrutiny of the Supreme Court.  However, the individual mandate is gone; the Constitution does not allow Congress to command Americans to own health insurance.  ObamaCare survived because Chief Justice John Roberts magically transmuted the penalty (for noncompliance with the now-defunct individual mandate) into a tax.  But on page 39 of the decision, we read:

It does not apply to individuals who do not pay federal income taxes because their household income is less than the filing threshold in the Internal Revenue Code.  §5000A(e)(2).  For taxpayers who do owe the payment, its amount is determined by such familiar factors as taxable income, number of dependents, and joint filing status.

So not only does ObamaCare tax the individual, but that tax is a part of the Individual Income Tax.  But when judging the characteristics of a tax, one must ask: what does the tax assess?

John Roberts’ new “ObamaCare tax” assesses ownership of health insurance.  It’s some strange type of property tax.  But it’s triggered only if one doesn’t own said property.  The ObamaCare tax is an amalgam of property tax and income tax.  If so, this new tax seems unique.

Under the ObamaCare tax, taxpayers who don’t own health insurance will be taxed at different rates depending on their income, but some won’t have to pay the tax at all because they aren’t required to file a 1040.  So the ObamaCare tax is going to be a bit unfair for those folks right at the “filing threshold.”  If you don’t own health insurance and you’re one cent over the threshold, the IRS expects you to tack on an extra $695 to your tax bill.

Under the original ObamaCare, Congress commanded us to own insurance.  But under the new ObamaCare, Congress taxes us for not owning what Congress cannot command us to own.  (My CPU is still collating, Dave.  I need more data.)  In any event, one thing most Americans know is that you don’t mess with the IRS.  So if the penalty in ObamaCare is now a tax, what is the penalty for not paying that new tax?  Well, on page 170 of the actual law, we read:

(A) WAIVER OF CRIMINAL PENALTIES.-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.
(B) LIMITATIONS ON LIENS AND LEVIES.-The Secretary
shall not-
(i) file notice of lien with respect to any property
of a taxpayer by reason of any failure to pay the penalty
imposed by this section, or
(ii) levy on any such property with respect to such failure.

Is ObamaCare great or what?  With all the taxes I’m familiar with, if you don’t pay them, you’re in big trouble.  But with ObamaCare, there’s no enforcement — it’s a toothless tax.  And the lack of enforceability was known about before the bill was signed.

So, are you willing to tell Obama, the IRS, and Harry Reid to go stick it? They cannot do jack to you if you do no t comply. It is just that simple.
I have no intention of complying, I have no intention of paying the tax.