The debate over the future of the nation’s health-care system turned to taxes this week, following the US Supreme Court ruling that found the federal government could impose penalties on citizens who didn’t obtain health insurance through its power to levy taxes.
The decision has roiled the presidential election, with the presumptive Republican nominee, Mitt Romney, calling the penalty a tax, but insisting his use of the tax code to penalize Massachusetts residents under the health-plan his administration instituted was not a tax.
Tax Watch tomorrow takes a look at the tax implications of Obamacare, which includes the federal income-tax credits that form the centerpiece of the initiative to make health-insurance affordable for millions of Americans.
In New York, an estimated 1 million residents are expected to gain insurance through the statewide marketplace, called the health exchange, which will provide a variety of levels of insurance. Proponents are predicting that competition in the exchanges will drive down costs, but that remains to be seen. The health exchange, which will have online access, is expected to be launched on Oct. 1, 2013.
Tax credits have a proven history of bipartisan support to address issues of poverty in America. The Earned Income Tax Credit, enacted in 1975, is seen as one of the most effective anti-poverty programs.