California Moves to Reinstate Obamacare Affordable Care Act Tax Penalty

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We told you here on about how President Trump signed an order last year that made the tax penalty for Obamacare’s Individual Mandate $0, starting in 2019. When he did that several Democrat-leaning states started to move toward their own version of a tax penalty for those without qualifying health coverage, including New Jersey, Vermont and Washington D.C. On June 25, 2019 California jumped into this battle when the state legislature voted on Monday to tax California citizens who do not buy health insurance.

What Happened?

Despite the fact that 93% of the state’s residents have health insurance, the passage of SB78 creates a new “Individual Mandate” at a state level that imposes fines for failing to purchase health insurance.

This was part of Governor Gavin Newsome’s plan to reinstate the mandate Trump effectively removed by making the fine $0. Critics immediately responded. State Assembly 67th District Representative Melissa Melendez (@asmMelendez, R-Lake Elsinore) took to Twitter to voice her concerns for what lawmakers often overlook, the “real impact” of legislation like this, saying:

“Data from the Affordable Care Act shows that the people most likely to owe the penalty are young, healthy people with jobs that pay $30,000 to $50,000 per year.”

In a series of Tweets, Assembly Member Melendez went on to reveal even more shocking and startling news about how this law will impact Californians:

“It makes no sense that young people making $30-50k per year are paying so that other people making $75k-130k per year can get a subsidy,” Assemblywoman Melissa Melendez (R-Lake Elsinore) Tweeted. “The fine, or tax because that’s what it is, is $695 per adult, $347.50 per child, or 2 1/2 percent of a household’s gross income, whichever amount is greater.”

You can read more about this decision at Now the real issue become, how will California actually track or even enforce this penalty?

To us, this sounds like a lot of time and money will go into that entire process, likely costing California WAY MORE than it would ever recoup in tax penalties or insurance premium shared percentages. And for what? Less than 7% of the population? Are California’s state legislatures actually working for its people, or for Gov. Newsome and the Democratic Party? 

Icing on the Cake

Almost forgot, in yet more evidence that California’s politicians are out of touch with the state’s growing deficit the went on to write:

“Lawmakers also approved a bill that to provide Medi-Cal government-funded health insurance to illegal immigrants, in the country illegally. Since both of these were covered in Gov. Gavin Newsom’s original budget, it is anticipated he will approve both within the budget trailer bill.”

 It’s clear this story is just beginning …