The latest news from four federal agencies is that:
1) insurance will be a lot less affordable than Americans were led to expect,
2) fewer people than promised will get insurance and
3) millions of people who have coverage through a job now will lose it, thanks to the president’s “reforms.”
Oh, and children are the biggest victims.
The Affordable Care Act is looking less and less affordable.
Start with the IRS’s new estimate for what the cheapest family plan will cost by 2016: $20,000 a year to cover two adults and three kids. And that will only cover 60 percent of medical bills, so add hefty out-of-pocket costs, too.
The next surprise is for parents who thought their kids would be covered by an employer. Sloppy wording in the law left that unclear until last week, when the IRS ruled that kids won’t be covered.
Starting in 2014, the law will require employers with 50 or more full-time employees to offer coverage or pay a penalty. “Affordable” coverage, that is — meaning the employee can’t be told to contribute more than 9.5 percent of his salary. For example, a worker earning $40,000 a year cannot be required to pay more than $3.800.
But the law doesn’t specifically mandate family coverage — and now the administration says that won’t be required.
You can see why: If the lowest-cost family plan (again, two adults and three kids) is to run a whopping $20,000, and if the employee’s contribution is limited to $3,800, the employer’s tab would be $16,200 — adding about $7.40 an hour to the cost of that employee. Wisely, the IRS announced on Jan. 30 that employers won’t have to pay for dependents.
But the Congressional Budget Office’s much-cited prediction that ObamaCare would leave only 30 million people uninsured by 2016 was based on the assumption that kids would be covered by employers.
At the very least, employers insuring their workers for the first time to avoid the penalty are unlikely to do that.
So how will the kids be covered? They won’t. The IRS shocked the law’s advocates by announcing that the insurance exchanges won’t provide subsidies for a child whose parent is covered at work.
Nor will these parents be penalized for not insuring their children — the IRS will kindly consider the kids exempt from the mandate.
…All in all, at least 40 million people could be uninsured in 2016, only 9 million fewer than before the law was passed.
Expect the momentum for repealing this law to grow as its flaws, perverse incentives and faulty predictions come to light.
Do you remember when he said that once his plan passes, insurance premiums will “decrease by 3,000%, so you should get a raise”?
How about when he said “We can cut the average family’s premium by about $2,500 per year”?
Now it turns out that the least expensive (and lowest coverage) plan to be offered will cost the average American family some $20,000 per year.
Is it beginning to dawn on you yet that this man will say just about anything to get destructive policies implemented, and that no lie is too big to tell in the process?
(CNSNews.com) – In a final regulation issued Wednesday, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year.
Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS.
The IRS’s assumption that the cheapest plan for a family will cost $20,000 per year is found in examples the IRS gives to help people understand how to calculate the penalty they will need to pay the government if they do not buy a mandated health plan.
The examples point to families of four and families of five, both of which the IRS expects in its assumptions to pay a minimum of $20,000 per year for a bronze plan.
“The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,” the regulation says.
Bronze will be the lowest tier health-insurance plan available under Obamacare–after Silver, Gold, and Platinum. Under the law, the penalty for not buying health insurance is supposed to be capped at either the annual average Bronze premium, 2.5 percent of taxable income, or $2,085.00 per family in 2016.
In the new final rules published Wednesday, IRS set in law the rules for implementing the penalty Americans must pay if they fail to obey Obamacare’s mandate to buy insurance.
To help illustrate these rules, the IRS presented examples of different situations families might find themselves in.
In the examples, the IRS assumes that families of five who are uninsured would need to pay an average of $20,000 per year to purchase a Bronze plan in 2016.
Using the conditions laid out in the regulations, the IRS calculates that a family earning $120,000 per year that did not buy insurance would need to pay a “penalty” (a word the IRS still uses despite the Supreme Court ruling that it is in fact a “tax”) of $2,400 in 2016.
For those wondering how clear the IRS’s clarifications of this new “penalty” rule are, here is one of the actual examples the IRS gives:
“Example 3. Family without minimum essential coverage.
“(i) In 2016, Taxpayers H and J are married and file a joint return. H and J have three children: K, age 21, L, age 15, and M, age 10. No member of the family has minimum essential coverage for any month in 2016. H and J’s household income is $120,000. H and J’s applicable filing threshold is $24,000. The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000.
“(ii) For each month in 2016, under paragraphs (b)(2)(ii) and (b)(2)(iii) of this section, the applicable dollar amount is $2,780 (($695 x 3 adults) + (($695/2) x 2 children)). Under paragraph (b)(2)(i) of this section, the flat dollar amount is $2,085 (the lesser of $2,780 and $2,085 ($695 x 3)). Under paragraph (b)(3) of this section, the excess income amount is $2,400 (($120,000 – $24,000) x 0.025). Therefore, under paragraph (b)(1) of this section, the monthly penalty amount is $200 (the greater of $173.75 ($2,085/12) or $200 ($2,400/12)).
“(iii) The sum of the monthly penalty amounts is $2,400 ($200 x 12). The sum of the monthly national average bronze plan premiums is $20,000 ($20,000/12 x 12). Therefore, under paragraph (a) of this section, the shared responsibility payment imposed on H and J for 2016 is $2,400 (the lesser of $2,400 or $20,000).”
A review of these numbers tells us a great deal about how most of the companies will do in the upcoming year.
And while successful retailers in 2012 may add stores this year, those that have performed very poorly may have to cut locations during 2013 to improve margins or reverse losses.
For many retailers, the sales situation is so bad that it is not a question of whether they will cut stores, but when and how many.
Most recently, Barnes & Noble Inc. decided it had too many stores to maintain profits. Its CEO recently said he plans to close as many as a third of the company’s locations.
Currently, the best example of a struggling retailer is J.C. Penney Co. Inc. The department store chain’s third-quarter revenue dropped more than 26 percent year-over-year, and its same-store sales fell by about the same.
With J.C. Penney’s e-commerce sales slipping by an ever greater amount, it was left with nowhere to go for bottom line improvement other than deep cost cuts.
These are the retailers that will close the most stores in 2013:
1.) Best Buy
2.) Barnes & Noble
4.) J.C. Penney
These forecasts were based on drops in same-store sales, drops in revenue, a review of direct competitors, Internet sales and the size of cuts at retailers in the same sector, if those were available.
Obama claims we’re in the midst of a booming recovery, and that the real problem is that America isn’t producing enough college graduates to fill the high-paying high-tech jobs available. But the facts demonstrate otherwise. The economic situation is now so grim, hundreds of thousands of people with advanced degrees — including Master’s degrees and Ph.Ds — are now filling the food stamp rolls. Obama’s “recovery” is merely a cheap illusion based on manipulated statistics and empty, imperial pronouncements. Truly, the emperor has no clothes. And the fawning multitudes simply don’t want to admit what’s staring them in the face: Obama’s lies, laid bare. — Spencer
(NaturalNews) Shelling out tens or even hundreds of thousands of dollars for higher education may no longer be the surefire path to a great career that it used to be.
A recent report compiled by the education resource group OnlineColleges.netfound that more than 300,000 Americans with either Master’s degrees or Ph.D.s were receiving food stamps in 2010 — and many more are likely on some form of government assistance today as economic conditions since that time have only continued to worsen.
To give a point of reference as to how bad the situation truly is, there were fewer than 100,000 Americans with Master’s degrees or Ph.D.s on food stamps in 2007, which means the overall number of people with extensive college educations on government assistance more than tripled in just three years.
And if this trend continued at the same rate between 2010 and 2013, the total number of college educated on government assistance today has easily eclipsed more than half a million, and with no end in sight.
According to the latest government data, more than 5,000 people working right now as custodians have Ph.D.s they are not using, and another more than 100,000 people with at least a bachelor’s degree currently work in some sort of custodial position.
A whopping 80,000-or-so people with at least a bachelor’s degree also currently work as attendants at amusement parks and other recreational facilities, while nearly 320,000 college graduates currently work as servers at restaurants and cafes.
“According to the Bureau of Labor Statistics, roughly one in three college graduates works in a job the Labor Department says requires less than a bachelor’s degree,” explains an infographic created by OnlineColleges.net. You can view that infographic here.
In the 1,420 days since he took the oath of office, the federal government has daily hired on average 101 new employees. Every day. Seven days a week. All 202 weeks. That makes 143,000 more federal workers than when Obama talked forever on that cold day in January of 2009.
Under Obama the total federal workforce has surpassed two million for the first time since the first Clinton term, now sitting about the 2.2 million level.
“The federal workforce has become an elite island of secure and high-paid workers, separated from the ocean of average American workers competing in the global economy,” according to a report this year by the Cato Institute.
That report found the average civilian federal government worker collected just under $84,000 a year in taxpayer money, about $32,000 more than the average private sector worker. That’s a total federal worker package of about $236 billion a year.
Congressional Republicans have also called for firing the thousands of federal employees who are behind in their income taxes but still somehow remain on the public payroll.
The latest IRS report said, for instance, that 36 of Obama’s White House aides had $833,000 in unpaid back taxes.
The most recent data on SNAP participation were released Friday, and showed that 47,710,324 people were enrolled in the program in September, an increase of 607,559 from the 47,102,765 enrolled in August.
The number of households enrolled in the program also increased from 22,684,463 in August to 22,973,698 in September, an increase of 289,235. The average benefit, according to the new data, was $134.29 per person and $278.89 per household.
The new numbers mean that an estimated one in 6.5 people in America were on food stamps in September.
In the 1970s, one out of every 50 Americans was on food stamps. Since 2001, spending on the program has quadrupled and doubled in the last four years.