In 2016, roughly 6 million people will pay the tax penalty, a provision of the healthcare reform law that requires most people to purchase health insurance, and the total tax penalty collections could reach $7 billion, according to a report from the Congressional Budget Office (pdf).
This insurance mandate has been one of the most highlighted features of the Patient Protection and Affordable Care Act. For those that do not buy insurance in 2016, they will either have to pay a flat fee of $695 or a percentage of the household's income, which will be 2.5 percent in 2016.
The latest figures are higher than the CBO and Joint Committee on Taxation projected in April 2010, when they estimated roughly 4 million people would pay the penalty with roughly $4 billion to $5 billion per year in total collections. The groups attributed the tax penalty increases to a higher-than-expected unemployment rate, lower wages and other economic outlook updates.
This insurance mandate has been one of the most highlighted features of the Patient Protection and Affordable Care Act. For those that do not buy insurance in 2016, they will either have to pay a flat fee of $695 or a percentage of the household's income, which will be 2.5 percent in 2016.
The latest figures are higher than the CBO and Joint Committee on Taxation projected in April 2010, when they estimated roughly 4 million people would pay the penalty with roughly $4 billion to $5 billion per year in total collections. The groups attributed the tax penalty increases to a higher-than-expected unemployment rate, lower wages and other economic outlook updates.
More Articles on the PPACA:
26% of Americans Expect to Pay Individual Mandate Tax Penalty
Healthcare Reform's Cost Precipice: Q&A With Dr. David Gruber of Alvarez & Marsal
Report: Healthcare Law Taxes to Affect Mostly Upper Class