March 25, 2010
Decline to Comply

In the grand scheme of things, it's relatively easy to threaten and bribe one's way to a 50%+1 legislative victory. It's quite a bit harder to ensure that the people change their behavior to conform to a new law -- especially when the law is both broadly and deeply unpopular.

Rasmussen reports today that "55% Favor Repeal of Health Care Bill". Go figure.

55 is an interesting number. Anybody remember the 55 mph speed limit? It was not just a "good idea". It was the law! A federal! law! Raise your hand and post a comment if you consistently complied with the law. I know I didn't. After getting a few speeding tickets (mostly on the beautifully spacious and scenic I-280 near Palo Alto), I realized that if you demanded a formal hearing to contest the ticket, the officers would rarely show up to testify. Ticket dismissed! Reality bites in the absence of political consensus to provide enough resources to enforce a law for which there is widespread scofflawism.

Oh, there's a mandate to buy insurance? Big f***ing deal. Throw me in jail along with the several million other people who decline to comply. The criminal justice system will get around to prosecuting us eventually, maybe sometime after it deports all those millions of undocumented immigrants. They're in violation of federal! law too. And if I get sick? I'll self-insure for the small stuff, and if I need a heart transplant I'll purchase insurance on my way into the operating room. They can't discriminate against pre-existing conditions, you know.

Posted by Stefan Sharkansky at March 25, 2010 10:17 AM | Email This
Comments
1. Now, I'm sure within those 2400+- pages there must be wording that they indeed can discriminate agaings far-right leaning patients. Look at the bright side, by 2014 some one may have actually read this whole thing. :)

Posted by: Duffman on March 25, 2010 10:18 AM
2. People have to check off on their tax return if they have insurance. But some people don't have to file returns. This page has more info

www.bankrate.com/brm/itax/news/taxguide/file-return1.asp

Wonder what the IRS will gather info on the non filers and what the cost of gathering that data will be?

The very steep declines in the insurance subsidies unfortunately create incentives to try to get non-cash compensation and/ or otherwise fudge one's reported level of income.

Posted by: Commentator on March 25, 2010 10:19 AM
3. Duffman...has a point. The idea that they would discriminate against Conservatives is a very real concern. The Government controlling health care, has taken a large step in achieving full Tyrannical Control over our Society.

Posted by: Daniel on March 25, 2010 10:29 AM
4. Yeah, what the hell. I will be needing three hots and a cot after the Democrats are finished wrecking the country. I just hope I don't have to share it with Bubba.

Posted by: Jack on March 25, 2010 10:29 AM
5. Many will likely find that 'Bubba' is indeed them! :)

Posted by: Duffman on March 25, 2010 10:32 AM
6. Obama was elected to do what is right..not what is popular. Many previous presidents have done the same (Bush Sr raised taxes, Bush Jr started two unpopular wars). So..its nonsensical that everything the government does immediately has to have over 50% approval.

Come November, if the voters STILL think that having better medical insurance coverage is a bad idea..and if the economy and markets are in worse shape than when Bush left it on Jan 20, 2009, then the voters will elect more right-wingers to Congress. Thats the way our system works.

Of course, with unemployment starting to slowly decline, and the markets up over 30% since Obama took office...and healthcare bill starting to take effect in a few months, I suspect the GOP will get back few seats at best..and certainly not enough to get a majority.

As to the debt..its a serious problem. However, the GOP track record (Reagan, Bush, "deficits don't matter" Cheney) shows they are clearly NOT the party of fiscal responsibility. Unfortunately, nobody is willing to make the hard decisions. The largest portions of the federal budget are (in order) Social Security, the military, Medicare and Medicaid and unemployment. Which would you like to cut?

The other option is to raise taxes a small amount. We're still at the low side of the Laffer parabola..so there is room to do this. Unpopular...but correct.

Posted by: Proteus on March 25, 2010 10:52 AM
7. Stefan, for a person who made his fortune in investment software, you're pretty naive about the tax laws.

The penalty for not having health insurance will be part of your income tax, so failure to pay will be treated just like failure to pay any other part of your income tax. You may not like paying the health insurance penalty; I don't like paying for the Iraq war; but to the IRS, it's all income tax. I doubt the IRS puts people in jail immediately for relatively slight underpayment, but you will be dealing with interest, penalties, wage garnishments, etc.

Or perhaps you are suggesting that people file false returns. Obviously the IRS doesn't audit most people, but you are taking a risk here. And while the IRS can't catch everyone, they love to make examples of people who encourage others to cheat. I wonder if they'll find out about a post whose heading is DECLINE TO COMPLY by Stefan Sharkansky?

Posted by: Bruce on March 25, 2010 10:58 AM
8. I just finished reading all the wonderful benefits of the new law in my local paper. Let me share what the new healthcare law does for me. I am retired not by choice, have done my 18 months on COBRA, and now am paying for my healthcare insurance as an individual. It is nothing special simply basic coverage, which I need because of serious health issues. Because of my income all from IRA's my medical insurance dwarfs all my other expenses. I now get the privilege of paying a 40% marginal tax rate on my insurance because the law considers it a "Cadillac" plan. Thank you senators Murray and Cantwell for nothing.

Posted by: Red on March 25, 2010 11:12 AM
9. Re 6: agree, Rs did not have consistently fiscally responsible policies either. The big problem though with the health tax increases and the financing is: at some point, there are some major consequences for incentives to work, and at some point the underfunded liabilities have got to be paid.

Just how high can taxes go, especially when you add in the state/local income tax rates in many states is in the 8 to 11% range, and they have their underfunded liabilities too?

The Ds seem to blame President Bush for starting a war without having a way to pay for it, but the financing assumptions on the health care bill, and the spending projections, seem as implausible as the cost of the wars has turned out to be.

Posted by: Commentator on March 25, 2010 11:16 AM
10. I like the black banner, Stefan, and I hope you find new reasons every day to keep it there.

Posted by: ivan on March 25, 2010 11:24 AM
11. Red@8, I believe the tax on "Cadillac plans" applies only to employer-provided plans, so it won't apply to you. The tax is intended to partially close the loophole that employee-provided health insurance is tax-free. Why should it be? Salary from an employer is taxed. Health insurance that you and I buy as individuals is purchased with money that has already been taxed. Why should employer-provided health insurance be any different? But it's politically impractical to tax all of it, so just the most generous (and expensive) plans will be taxed.

Posted by: Bruce on March 25, 2010 11:25 AM
12. Look at the bright side, sex offenders can get treated for their E.D.
http://www.politico.com/livepulse/0310/Dems_reject_amendment_to_ban_Viagra_for_sex_offenders.html

Posted by: Mike336 on March 25, 2010 11:25 AM
13. Quote:
"After getting a few speeding tickets"

GM ONSTAR will likely be mandated by Obama (Clinton 2.0) for all cars and GM will make billions as a data provider to the insurance firms along with gun ownership registration records...your premiums could skyrocket if you don't get rid of that gun. Failure to maintain coverage might get you a date with the IRS, BATF, Selective Service System, put into the high risk pool etc.

Employers will get the payroll tax off approved HSA/cat plans and maybe a tax credit (bribe) for enforcing the law early on and to deal with the minimal admin cost.

If you have a 4 year university degree the social contract tends to work for you otherwise you're basically more and more becoming a second class citizen useless eater type...nothing novel about that.

Posted by: Don Swansn on March 25, 2010 11:49 AM
14. Elections have consequences, not Polls.

Posted by: Robert on March 25, 2010 12:31 PM
15. Bruce, thank you for your words of wisdom. It is not the first time the local excuse for a paper put out bad information. I was so PO that I was actually shaking. I must control those emotions or they will literally kill me.

Posted by: Red on March 25, 2010 01:09 PM
16. Re: Bruce at #7, Can we ever have one, just one discussion here where liberals don't bring up the Iraq War? They do it like trained parrots. Did Obama bring the troops home? Did he close Gitmo? Did he pour more troops into Afghanistan? Not exactly.

Try staying on topic for once.

Posted by: Bill Cruchon on March 25, 2010 01:53 PM
17. Proteus attempts to conflate Reagan/Bush deficits with that of Maobama. No comparison. February's deficit alone is greater than G.W.s most irresponsible spending in a whole year.

With regard to Maobama's overall goal of control, enablers like you and Bruce are utterly oblivious to creeping tyranny.

We're all frogs, in the slow boil of Socialism.

Posted by: yaddacubed on March 25, 2010 02:10 PM
18. I had already decided not to comply. It's time for Revolution, people (not the sheeple, they can go down with the ship). I'm actually considering converting a certain quantity of my liquid assets into cash to store out of the reach of the IRS.

Posted by: Carol on March 25, 2010 02:48 PM
19. So..why is "socialism" such a swear word around here?

"Socialist" countries like France, Germany, Japan, Norway, and Sweden enjoy some of THE highest standards of living in the world.
There are degrees of "socialism", just like there are degrees of capitalism. The world is not black and white.

And..yaddacubed, deficits are calculated annually, not monthly. Obama inherited two wars, and a collapsed economy from Bush..its going to take him a few years to get things back on track.

Posted by: Proteus on March 25, 2010 05:16 PM
20. Mr. Proteus, here is what the above-mentioned socialist countries also have: small, homogeneous, populations (just try being white in Japan, and see how you are treated); systemic over 10% unemployment (which is what our Dems have basically promised us); declining populations of working-age people to pay for the huge social programs; very high rates of taxation, often up to 50% of income; small geographic area. The US is totally different, and our Founders were running away from total government control of their lives and property. If you like Socialism so much, please go live in one of those countries.

Posted by: Carol on March 25, 2010 06:13 PM
21. Cruchon@16, try reading my comment again. It was entirely on topic. The reference to Iraq was as an example of another thing that is irrelevant to the IRS. The IRS treats deadbeats the same regardless of which part of the tax code they disagree with.

Carol@20, I don't give two hoots about what our founders were running away from, any more than Norwegians need to give two hoots about what their founders were thinking. Sure we can learn important lessons from our founders, and of course we are bound by the constitution unless we amend it. But beyond that, I care about what I and my fellow Americans believe a lot more than what our founders believed. And legally, that's all that matters.

Stefan, congratulations on beating the system for traffic tickets. Amazing how someone smart enough to figure that out would be stupid enough to announce publicly that he plans to cheat on his taxes, just daring a reader to share this information at http://www.irs.gov/pub/irs-pdf/f3949a.pdf . Same for you, Carol, although you probably feel safe because the founders didn't believe in reporting crime via the internet.

Posted by: Bruce on March 25, 2010 09:35 PM
22. Ghandi refused to pay the salt tax to the British Empire he could not vote to remove from power. Thoreau refused to pay taxes for the support of slavery. Our national hero, Dr. Martin Luther King, Jr., refused to obey a government which denied rights to citizens. Pikers all, compared to our modern patriots, who demand the right to pay CEOs to deny medical benefits. CEOs need yachts, just like humans need rights! Or something...

Posted by: tensor on March 25, 2010 11:03 PM
23. I look forward to my cell, because I will not pay a f**king dime for this.

I will not get the insurance mandated. Ever.

I will not pay any fine or fee because of that.

Period.

IRS or any other acronym notwithstanding. So, I say,

"Bring"
"It"
"On."

Posted by: Hinton on March 25, 2010 11:03 PM
24. I look forward to my cell, because I will not pay a f**king dime for this.

As a bleeding-heart liberal, I will be happy to know you are **finally** getting three square meals a day, adequate shelter, and decent medical care. Progress!

Posted by: tensor on March 25, 2010 11:14 PM
25. Really Hinton? You don't currently have health insurance? So, one would assume you are either:
1) Unemployed, and can't afford it
2) Amazingly rich, and can afford to pay your own way if you get sick
3) a moron, who can't plan ahead

Which is it?
If its #3, the law, and the penalty exists solely to prevent your stupidity from forcing us to pay for your next emergency room visit.

Posted by: Proteus on March 26, 2010 12:01 AM
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