by WorldTribune Staff, March 2, 2018
Many taxpayers are unaware that the repeal of the Obamacare individual mandate does not take effect until 2019, the chairman of the House Freedom Caucus said.
Rep. Mark Meadows, North Carolina Republican, said the repeal should be immediate so taxpayers can avoid being hit with a fine by the IRS for not having health insurance.
“Unfortunately, many Americans believe the mandate to be immediately repealed and no longer in effect, but will be surprised to learn that it still applies for both 2017 and 2018 tax returns,” Meadows said. “Congress must resolve this.”
The Tax Cuts and Jobs Act signed by President Donald Trump last years repeals Obamacare’s individual mandate, but the repeal will not become effective until fiscal year 2019.
For tax year 2017, the penalty is 2.5 percent of total household adjusted gross income, or $695 per adult and $347.50 per child, up to a maximum of $2,085. For tax year 2018, the penalty amounts have not been announced, but are expected to increase.
According to a Breitbart News report, 80 percent of Americans who pay the Obamacare individual mandate fine make less than $50,000 per year.
“The individual mandate is a penalty that forces Americans to buy something they may not want or need, and its consequences hit the pocket books of low-income Americans the hardest,” Meadows said in a statement.
“That’s why I have formally requested the Appropriations Committee include a full repeal of the individual mandate for 2018 and retroactive to 2017 so that we can give American families relief from the mandate’s unnecessary burden.”