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ATR: The Individual Mandate Excise Tax is a Tax
Date:2/23/2010

ault/files/summary-presidents-proposal.pdf">President Obama's healthcare plan finds several terms to describe the tax Americans will pay if they choose not to purchase qualifying health insurance.  These terms include "payment," "assessment," and "individual responsibility."

  • This same tax has also variously been referred to as a "penalty," a "fee," or a "fine."  In fact, it's none of those things, precisely.  It's a tax.  The various synonyms used are designed to hide that simple fact.  The reason for wanting to do so is clear: since this tax would be assigned to any uninsured American (including those making less than $250,000 per year), it's a pretty apparent violation of the President's promise not to raise "any form" of taxes on working families.
  • The evidence that this tax on the uninsured is in fact a tax comes from a thorough reading of the Senate healthcare bill's uninsurance tax section (which the Obama plan specifically says it is starting from).
  • Page 322 of the Senate bill (the "Patient Protection and Affordable Care Act") says that "any penalty imposed b
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SOURCE Americans for Tax Reform
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