Tags: Obamacare | tax | IRS | justice

Obamacare Highlights the Folly of Tax Justice

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Monday, 10 Nov 2014 08:03 AM Current | Bio | Archive

Tax justice is the theory that drives the expansion of government giveaways. Its basic premise is that you are making money and paying tax so you should pay for the people who don't make money and pay tax.

Few people dispute that America is a land of compassionate people who believe in helping those in distress. But tax justice is not about compassion. It's the method favored by ideologists to pay for the politics of social engineering.

Obamacare is yet another trillion dollar example how this actually works in real life.

Medical services cost money. Obviously, those who get those services ought to pay for them. For those in desperate circumstances, charitable sources, both private and governmental, have always endeavored to help the unfortunate.

Obamacare doesn't follow this simple benevolent thought.

In fact, it is not directed toward the provision of medical services at all. What it does attempt to do is redistribute the cost of buying insurance so that large numbers of voters get subsidies, theoretically benefiting the respective politicians while the ideologues feel good about themselves.

The mechanism is to tax some people — the rich — and give subsidies to others. The recipients would theoretically be either grateful for or addicted to being given other people's money and will be thereby loyal voters to the politicians who are their benefactors.

The idea being that it is only just that people with more money have it taken by the bureaucrats so the government can hand it over to people with less money.

That's the bottom line of tax justice.

What's overlooked in this is the fact that those with less money are not treated unjustly by those with more money. Nobody took any money from them so they don't have a claim to get any money back. The phrase "tax justice" is an absolute perversion of social policy. It calls for the government confiscating private property by calling theft a tax, laundering it through the bureaucracy and giving it to others who don't pay tax.

Unfortunately for everyone, Obamacare is a demonstration of the failure of this sort of governmental social engineering.

From the tax perspective, Obamacare is creating a nightmare for taxpayers. The Commissioner of the Internal Revenue Service has indicated that the coming tax filing season will be chaos. He didn't exactly use that word, but I took that for what he meant.

Every taxpayer, and non-taxpayer, will be caught up in this mess since the IRS is the bureaucracy given the privilege to administer Obamacare.

Compliance with Obamacare involves determining whether someone has the minimum required coverage or is eligible for an exemption from coverage. This then leads to finding out if there will be a shared responsibility payment or tax penalties.

Just filling out the most basic of forms will be dauntingly complicated. Even for the most knowledgeable tax experts, each return will require significant research about each person's individual and family circumstances.

In fact, it seems to me that everyone will need to use professional tax return preparers who have the right software to cope with the new forms and intricacies in simply trying to comply with a law that neither the taxpayers nor the IRS actually understands.

Unquestionably, the IRS (which is already underfunded and undermanned) will be inundated with incorrect tax returns. I wouldn't be surprised if their computer systems don't melt in the process.

There is no hope for Obamacare.

Everyone recognizes the need for receiving health services. But the idea underlying Obamacare that taxing some people because it is fair and just to pay for other people is something that always results in absolute folly.

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Kleinfeld
Tax justice is the theory that drives the expansion of government giveaways. Its basic premise is that you are making money and paying tax so you should pay for the people who don't make money and pay tax.
Obamacare, tax, IRS, justice
604
2014-03-10
Monday, 10 Nov 2014 08:03 AM
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