Is the Affordable Care Act Doomed?

[oldr_n_wsr]

I think the administrationbuffaloed bisoned everyone.

fixed that for ya.

[BoSoxGal]

[BoSoxGal]

I've been trying to apply for health insurance coverage for next year using Healthcare.gov tonight.

The application itself is very user-friendly and simple to complete, but twice I've been booted from the system at the point of electronic signature and submission of application.

The first time, I had to go back and answer a few of the questions I'd already answered, because the system didn't save them - but 90% of my application was saved.

I'm going to try once more and then give up for tonight . . . perhaps logging on later tonight or in the wee hours will do the trick. I should say, I have a sometimes problematic internet connection already, so it could be adding to the problem.

Still and all, it will be at most 1 hour of my time to complete the application and based on my low-balled projection for income next year - because I just don't know and I can always update it if I do better than expected in practice - I'm going to get a subsidy and my policy will be almost as good as what I had from my employer, but at a fraction of the cost.

Thanks, fellow taxpayers, for helping me stay healthy next year! For what it's worth, besides 7 months of unemployment checks, this is the first time I've gotten something back from all the taxes I've paid in. Yay!

[MajGenl.Meade]

this is the first time I've gotten something back from all the taxes I've paid in

Surely you're forgetting all those invasions of Iraq and Afghanistan and other exotic climes, not to mention my son's holiday in Palau while on leave from S. Korea?

[BoSoxGal]

I REALLY want to go to Palau; I even considered a job there, but it was more prosecution and I'm really sick of that. Also, I got the feeling that maybe it's better as a place to visit than a place to live for two years (that's the contract required of US attorneys hired there).

Anyway, I of course have gotten many more indirect rewards in exchange for paying taxes; I was just being facetious.

Update on ACA enrollment: I got busy with other practice-related stuff the past few days, but Healthcare.gov sent me a reminder email every other day or so to remind me to complete the application process.

I tried logging in last night but couldn't, I had no trouble with it just now, and spent 15 minutes completing the process.

As of January 1, 2015 I will continue to have a platinum healthcare plan for $368/mo. (1/3 what my employer pays for comparable coverage), plus a 'best coverage' dental plan for $34/mo. My first premium will be due December 15th, which is no biggie.

I'm excited! Thanks to ACA, I'm an entrepreneur!

[Long Run]

Glad we can help. TANSTAAFL.

[BoSoxGal]

It's no free lunch - I've paid many thousands of my income into taxes every year in recent years, and will do so again once my practice takes off. I'm not complaining; I'd just as soon pay the same % of income into taxes as the Danish do, and I'd have free cradle-to-grave healthcare and I wouldn't have incurred $180,000 in student loan debt to educate myself. No free lunches here, Long Run.

[Big RR]

BSG--I'd bet what you pay is not all that much off what the Danes pay; first factor in 15% for social security (half deducted from your pay in real time, the other half deducted before you even start by your employer who pays you less because it must pay the other half); add to that a 2% for medicare; then add you federal tax at the marginal rate (say 35%), and state income tax (in most states, say another 6%). this brings you to 58%, and we haven't even addressed other taxes, such as property taxes, which are astronomically high in some areas. They may have a VAT, but most states have a sales tax as well. We're not really that far behind.

[Econoline]

Big RR - I'd say your biggest miscalculation is that figure of 35% for federal income tax: not many (errr...rather, NO) Americans pay that much of their total income to the IRS for income tax.

[Big RR]

Econo--I don't have time to research the rates, but I am basing it on the cut points for marginal rates (which is how the 60+% was reported for Denmark in the reports I read), but even if you knock 10% off my estimate, we still are paying nearly 50%. Yes, there are probably deductions available for some income in the US, but I don't think it's all that different from Denmark (as I recall, Sweden had deductions for commuting, e.g., which the US does not, and I would imagine Denmark is similar). Few Danes are paying 60% of their income in taxes either. And if you add in what we pay for health insurance (and whoever signs the checks, we are paying for it), I think we pay a lot more than what I estimated.

[Lord Jim]

Let's not forget the ever popular property tax...

[Big RR]

In many areas, property tax is a major expense, to the point of being painful.

[BoSoxGal]

My gross is $8358/mo. and I take home $5174/mo.; I gather I'm contributing $110/mo. to my health insurance, plus I am required to pay into the public retirement system $646/mo. - the rest is taxes.

I am lucky in that Montana has no sales tax (although I don't shop much, this mostly helps out in regard to household purchases such as cleaning supplies, because I buy most everything over the interwebs and no tax there, either) and the property tax here is ridiculously low. Not only could I never afford my beautiful Craftsman-style home back East, even if I could I couldn't afford the property taxes.

But then, the trade-off is that I live in a dusty shitty cowboy town with little in the way of public services - the cops, I can attest, are a bad joke.

It's a good place to hunker down and write a novel, though!

[Lord Jim]

In many areas, property tax is a major expense, to the point of being painful.

Yeah, I live in one such area; I can attest to the pain involved....

ETA:

a dusty shitty cowboy town

BSG, I'm going to suggest that you not put that on your business cards or any other promotional materials...

I'll give you that business marketing consultation gratis...

[Big RR]

Jim--I do as well, but not quite so high as the Bay area.

BSG--a quick calculations shows you pay a little under $30,000 a year in income taxes, plus another $8000 for the employer's social security share of social security plus another $2000 for medicare (roughly), or around $40,000 a year, about 40% of your gross pay. Not 60%, but not all that far away. And then you have a lot of other necessary expenses like health insurance and education as you pointed out.

[Long Run]

In many areas, property tax is a major expense, to the point of being painful.

Yeah, I live in one such area; I can attest to the pain involved....

Guess you didn't get your property's value set back to 1973 like all my California friends. One of the oddities of old Prop 13 is that it almost locks families into their property. I think my friends pay about $1,000 per year in sunny Saratoga and people across the street (same basic house) pay over 10 times that based on the recency of their ownership.

[BoSoxGal]

Jim--I do as well, but not quite so high as the Bay area.

BSG--a quick calculations shows you pay a little under $30,000 a year in income taxes, plus another $8000 for the employer's social security share of social security plus another $2000 for medicare (roughly), or around $40,000 a year, about 40% of your gross pay. Not 60%, but not all that far away. And then you have a lot of other necessary expenses like health insurance and education as you pointed out.

I'd be lots happier paying 60% in taxes and not having had to deal with the student loan debt or the insecurities about what health insurance will cover and what it won't - but ah well . . .

[rubato]

Wow, Montana really sticks it to the poor on income taxes you hit 6% barely over the poverty level and the maximum rate at just 1.5 times the poverty level. :

Personal income tax

Montana's income tax system covers seven income brackets:

1 percent on the first $2,800 of taxable income.
2 percent on taxable income between $2,801 and $4,900.
3 percent on taxable income between $4,901 and $7,400.
4 percent on taxable income of $7,401 and $10,100.
5 percent on taxable income of $10,101 and $13,000.
6 percent on taxable income of $13,001 and $16,700.
6.9 percent on taxable income of $16,701 and above.

Read more: http://www.bankrate.com/finance/taxes/s ... z3KhRZzGUA
Follow us: @Bankrate on Twitter | Bankrate on Facebook

By contrast:

Personal income tax

California collects income tax from its residents at the following rates.

For single and married filing separately taxpayers:

1 percent on the first $7,582 of taxable income.
2 percent on taxable income between $7,583 and $17,976.
4 percent on taxable income between $17,977 and $28,371.
6 percent on taxable income between $28,372 and $39,384.
8 percent on taxable income between $39,385 and $49,774.
9.30 percent on taxable income between $49,775 and 254,250.
10.30 percent on taxable income between $254,251 and 305,100.
11.30 percent on taxable income between $305,101 and $508,500.
12.30 percent on taxable income of $508,501 and above.

A 1 percent surcharge, the Mental Health Services Tax, is collected on taxable incomes of $1 million or more, making California's highest marginal rate 13.30 percent.

For married persons filing joint returns and heads of households, the rates remain the same but the income brackets are doubled.

Read more: http://www.bankrate.com/finance/taxes/s ... z3KhRKKSae
Follow us: @Bankrate on Twitter | Bankrate on Facebook

[BoSoxGal]

You'll find no dispute from me - Montana's poor are among the worst off in the country and I don't support our regressive tax system. But, I'm doing what I can to help poor folks out in any way I can - in my future incarnation as a private attorney, it will be by charging flat rates instead of billable hours, and doing unbundled services where I can that allow folks in uncontested actions to get simple legal advice and assistance with forms for a low cost, while they proceed pro se in court.

[Jarlaxle]

In many areas, property tax is a major expense, to the point of being painful.

It's why I sold my house and left the state.