Avoid the obamacare penalty by limiting employer's withholding tax | TigerDroppings.com
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C
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The Woodlands, TX
Member since Dec 2007
22833 posts

Avoid the obamacare penalty by limiting employer's withholding tax

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quote:

The IRS’s only collection authority is to take the money from a worker’s federal withholding tax


Is this true? The IRS can't collect outside of what's left over after paying federal income taxes from withholdings?

This post was edited on 8/19 at 10:42 am



wilfont
LSU Fan
Gulfport, MS on a Jet Ski
Member since Apr 2007
14531 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
That's an interesting contention. Perhaps by calling it a tax instead of a fine they inadvertently limited the IRS' collection power. The IRS issues fines every day that the collect upon without raiding withholding money.
This post was edited on 8/19 at 10:40 am


Lsut81
USA Fan
Member since Jun 2005
65842 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
quote:

Perhaps by calling it a tax instead of a fine they inadvertently limited the IRS' collection power.


Where does the court case around it being a Tax stand??? Theres a lot of speculation that Roberts ruled it a Tax as a round about way to get it shot down.

The legislation originated in the Senate, which under the constitution, is illegal.


wilfont
LSU Fan
Gulfport, MS on a Jet Ski
Member since Apr 2007
14531 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
quote:

Where does the court case around it being a Tax stand???

I just read an article that says a group calling itself the Pacific Legal Foundation has filed suit siting the bill's origination as its foundation. I don't know where it stands in the system.


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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
22833 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
Also, if i'm reading it correctly, the tax payer will save by low-income people not recieving the income tax credit. Sounds like a win-win.


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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
42832 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
quote:

The legislation originated in the Senate, which under the constitution, is illegal.


It was an H.R. Bill not an S.

They took a house bill and gutted to amend it. It's definitely not the way our forefathers intended it but I would be shocked if SCOTUS overruled it on that.


C
LSU Fan
The Woodlands, TX
Member since Dec 2007
22833 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
Bump. Can anyone confirm if this is true about how the IRS can enforce the tax?


TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
13521 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
This is an interesting strategy.

I would like to know if you could buy a traditional health insurance policy from a foreign insurance company.

I'm talking about the traditional type where you pay the doctor cash and file your own reimbursement. The provider would have no involvement with the claim processing. The foreign company would be real insurance (no preexisting conditions, no kids covered till age 26 etc.) so it would not meet ACA guidelines, but it would be priced accordingly.
There would be risks in dealing with an overseas company but there must be a few respectable foreign firms out there.

This way you stay out of Obamacare, manage your withholding to avoid the fine, and run your own show on your own terms.



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matthew25
Ole Miss Fan
Member since Jun 2012
3912 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
Only the way you described in the opening. They cannot seize and sell your property, or place a lien.


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SpidermanTUba
LSU Fan
NAWLINS
Member since May 2004
32277 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
quote:


The legislation originated in the Senate, which under the constitution, is illegal.


It originated in the House as H.R. 3590.



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SpidermanTUba
LSU Fan
NAWLINS
Member since May 2004
32277 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
quote:


They took a house bill and gutted to amend it. It's definitely not the way our forefathers intended it but I would be shocked if SCOTUS overruled it on that.

This is true. The origination in the house provision has turned out to be largely unenforcible, because while all revenue and appropriations bills must originate in the house, the senate is free to make revisions.



ell_13
USA Fan
Member since Apr 2013
32003 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
That's not anything new. It often happens both ways. Sometimes, it's done on purpose. A bill that was started to recognize a scout troop in Wyoming for saving a buffalo will get stripped and turned into $400 million worth of funding for small grants and projects all over the state.


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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
16906 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
I'm not sure this is a very practical approach. You would have to set your withholding to exactly your income tax liability for it to work. If you have too much withheld, the IRS will simply reduce your refund by the amount of Obamacare tax you owe. If you have too little withheld they will simply apply the first payments you make of tax to the Obamacare tax, and then your outstanding income tax, penalties and interest. If you do not pay the income tax the IRS can use collection processes to pursue the unpaid income tax, and how do you think they will apply any money they happen to collect?


C
LSU Fan
The Woodlands, TX
Member since Dec 2007
22833 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
quote:

If you do not pay the income tax the IRS can use collection processes to pursue the unpaid income tax, and how do you think they will apply any money they happen to collect?


There's gotta be a loophole...


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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
13521 posts

re: Avoid the obamacare penalty by limiting employer's withholding tax
quote:

If you have too little withheld they will simply apply the first payments you make of tax to the Obamacare tax, and then your outstanding income tax, penalties and interest


looks like entrapment to me


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