fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

Big Tax Cuts Likely for 80,000 Minnesotans Charged Obamacare Penalty

One of the most significant provisions of the Senate tax cuts got lost in the media frenzy immediately following passage. On the way to approving the most comprehensive tax reform since Reagan, the Senate also voted to kill Obamacare’s individual mandate. And it doesn’t exactly fit the liberals’ narrative of tax breaks for the rich.

The repeal amounts to a major tax cut in itself for millions of Americans. The beneficiaries of getting to keep their own money include nearly 82,000 Minnesotans who paid the federal government $35 million under the penalty for 2015.

The tax hits middle and lower income Americans hardest of all by far with more than 90 percent of those penalized earning under $75,000. In Minnesota, 80 percent of those paying the Obamacare tax earned $50,000 or less.

The individual mandate’s repeal would effectively short-circuit Obamacare, while also going a long way to satisfy the GOP’s unfulfilled promise to undo the previous president’s signature achievement, according to The Hill.

“Families ought to be able to make decisions about what they want to buy and what works for them — not the government,” Sen. John Barrasso (R-Wyo.) said, hailing the accomplishment.

“I believe if people don’t want to buy the ObamaCare insurance, they shouldn’t have to pay a tax penalty to the IRS.”

The Senate tax bill must still be reconciled with House legislation that does not include the mandate’s repeal. But that is unlikely to be a major issue, given support in the GOP conference for repealing the mandate.

Yet National Review points out another compelling reason to celebrate the probable end of the individual mandate.

But the biggest problem with the individual mandate is not a question of money. The idea that government can force every American to purchase a specific product, even for the common good, is deeply offensive to the American idea of individual liberty. There is a good reason why the individual mandate is the most unpopular part of Obamacare: It runs contrary to the American character, and fundamentally alters the relationship between government and the individual. That alone would justify repeal.

Comments

Subscribe

Categories

Upcoming Events

  • Morning in Minnesota Breakfast Series Featuring Isaac Orr

    Location: The Oaks at Eagle Creek 1000 26th Ave NE Willmar, MN 56201

    Please join Center of the American Experiment on Tuesday, August 27th at The Oaks at Eagle Creek for breakfast with Center policy fellow and energy expert, Isaac Orr. Following his discussion of his new report, Doubling Down on Failure: How a 50 Percent by 2030 Renewable Energy Standard Would Cost Minnesota $80.2 Billion, Isaac will be joined by Rep. Tim Miller, Rep. Dave Baker, and Sen. Andrew Lang for a conversation about renewable energy standards in Minnesota. Tuesday, August 27, 2019 The Oaks at Eagle Creek 1000 26th Ave NE, Willmar, MN 56201 7:30 AM Breakfast & Check-In 8:00 AM Presentation…

  • Fall Briefing Featuring Kimberley Strassel

    Location: Ordway Center for the Performing Arts 345 Washington Street, St. Paul, MN 55102

    Purchase Tickets Here

    Register Now