What do you think of the IRS receiving the penalties for those who choose not to get healthcare?

[thecrow]

I spoke with someone on the phone about the ACA and as a final question, I asked, "What happens to all the money from the penalties?" I was surprised to hear that the IRS gets it. It would seem to me that the money from penalties should be going to a fund to further the ACA... for instance, to help expand Medicaid in the states that didn't... as sort of a federal fund that would help people impacted by their states' decision not to expand Medicaid.... Or to buy medications at reduced prices, or to go into a general fund for disaster relief... or to help hospitals?
Has anyone heard about any such measures or is it really going into the IRS.... and what would the IRS do with it?
Just curious.

[wercal]

1. The IRS doesn't get all the money it collects

IRS collected money goes into the general fund, and is doled out to various agencies, as congress sees fit.

The ACA that was scored by the CBO was supposed to be solvent for the first ten years...this scoring assumed that the penalties would be used to subsidize low income policy holders. So that is where the money is earmarked to go.

There won't be a federal expansion of Medicaid. In fact, the ACA only subsidizes expanded Medicaid for two years in the states that elected to expand it - from then out it is a state budget responsibility.

And currently, I don't think there will be a windfall of money to put into a disaster relief fund or anything like that. The fines are probably going to fall short of what is needed for the subsidies...yesterday Jay Carney hinted that subsidies would be expanded, to help put a stop to the "I lost my insurance" stories.

[Travis_0004]

7. I believe the federal goverment pays 90% of the medicaid expansion.

They pay 100% for a short while, then 90% of the expansion long term.

[thecrow]

2. I wish that the ACA representative had that information available

Hopefully they will be better informed in the future.Thank you.

[JoePhilly]

3. What does the IRS do with all the other tax dollars it collects?

[Lasher]

9. They turn them into worthless IOUs

Just green pieces of paper with pictures of dead presidents on them.

[JoePhilly]

11. I KNEW it!!!

[djean111]

4. Excellent point.

I do think using it to help people impacted by their states' decision not to expand Medicaid is a great idea.

[Keefer]

5. If the IRS didn't collect it

It wouldn't be a tax. It would be a fine. Therefor it wouldn't have been constitutional.

[Lasher]

10. That is a very good answer, Keefer.

You don't say much but when you do you make it count.

[Keefer]

13. Thank you.

[kenny blankenship]

6. It goes to keep capital gains and corporate taxes low

so rich people can maximize their happiness without being burdened by the poor - all in a good cause, thecrow. The most American of all good causes.

[geek tragedy]

8. Same thing the IRS does with all money it collects--it is turned over

to the federal government for its spending needs, including implementing the ACA.

[fadedrose]

12. Not worried about penalties at this point

I am so sure that something/someone does not have the President's best interests at heart. I have the feeling that they want to make his life so hard that he will resign..

Now who would be that conniving?
.