HR3200 : Division A : Day Four

I was going to do a quick review at this point, but I realized that today is August 15th and if I keep looking back to review, I’ll never move forward quick enough to cover the entire bill before Labor Day.

Division A, Title IV, Subtitle A, Part 2, Section 411 sets the employer responsibility regarding election to satisfy health coverage participation requirements. The section defines how the employer makes an election for coverage, the separate types of elections, and the termination of those elections if the Secretary of Health and Human Services determines that such employer is in noncompliance with participation requirements.

The non-complying employer will then be subject to an additional excise tax of $100 per employee, per day, until the failure is corrected.

In the case of any employer who fails (during any period with respect to which the election under subsection (a) is in effect) to satisfy the health coverage participation requirements with respect to any employee to whom such election applies, there is hereby imposed on each such failure with respect to each such employee a tax of $100 for each day in the period beginning on the date such failure first occurs and ending on the date such failure is corrected.

Imagine what happens if a small company with just 5 employees is found to be in non-compliance for just 31 days. That small business will be subjected to an additional $15,500 for those 31 days.

Subtitle B, Section 421 allows for the Small Business Employee Health Coverage Credit where a qualified small business employer will receive a credit initially set at 50%, but there’s a catch.

In the case of an employer whose average annual employee compensation for the taxable year exceeds $20,000, the percentage specified in paragraph (1) shall be reduced by a number of percentage points which bears the same ratio to 50 as such excess bears to $20,000.

That’s right. An employer whose average annual employee compensation is over $20,000, the “credit” is phased out. Wait, there’s more.

In the case of an employer who employs more than 10 qualified employees during the taxable year, the credit determined under subsection (a) shall be reduced by an amount which bears the same ratio to the amount of such credit (determined without regard to this paragraph and after the application of the other provisions of this section) as—

“(A) the excess of—

“(i) the number of qualified employees employed by the employer during the taxable year, over

“(ii) 10, bears to

“(B) 15.

Any employer with more than 15 employees won’t receive the credit. Again, there’s more.

No credit shall be allowed under subsection (a) with respect to qualified employee health coverage expenses paid or incurred with respect to any employee for any taxable year if the aggregate compensation paid by the employer to such employee during such taxable year exceeds $80,000.

Section 421 sets the credit at 50% for small business owners, but then takes that credit away from any employer for compensation over $20,000, more than 15 employees, and those who make more than $80,000 per year. This does nothing but penalize those who do well. Yet another example of socialism.

The remainder of Section 421 deals with qualified employee health coverage expenses, average annual employee compensation, special rules for partnerships and self-employed, denial of double benefit, and inflation adjustments (yes, they will be raising amounts based on cost of living adjustments).

Subtitle C, Section 431 gives any Health Choices Administration officer or employee the right to access all of the information being stored in the main database. You remember the database we talked about two days ago don’t you? This section also restricts the use of disclosed information, but we all know how well government “restrictions” are enforced don’t we?

I have a serious problem with Subtitle D, Section 441. This section should be titled the “Socialist Redistribution Plan”.

In the case of a taxpayer other than a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to—

“(1) 1 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $350,000 but does not exceed $500,000,

“(2) 1.5 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $500,000 but does not exceed $1,000,000, and

“(3) 5.4 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $1,000,000.

If you are an individual making more than $350,000 per year, you are going to pay a higher percentage (via a “surcharge”). The more you make, the more you pay. The higher your income the higher percentage you are forced to pay. Let’s forget the fact that people who make more money pay a higher amount (dollar wise) already. Forcing them to pay more (percentage wise) is socialism, plain and simple. If health care is for everyone, then everyone should pay the same amount. Read this section carefully. Corporations that make more money, will not be paying more into the system. Only their employees will be responsible based on their income level.

The remainder of this section sets the definition for health reform savings, as well as adjustments and determinations.

When the government issues it’s reports on savings they will not be required to report all costs when determining those savings.

For purposes of paragraphs (3) and (4), reductions in Federal expenditures shall be determined without regard to section 1121 of the America’s Affordable Health Choices Act of 2009 and other program investments under division B thereof.

We’ll end this evening with this little tidbit at the end of Section 441.

The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.

That’s right. The taxes imposed under this section will not be treated as a tax. Remember, in socialism it’s your duty to contribute to the common good, and it wouldn’t be good for the common person if they used the word “tax” when they took your money from you.