Proposed Senate Plan Would Involve IRS in Collecting Fines from Non-participants

By RICARDO ALONSO-ZALDIVAR, Associated Press Writer Ricardo Alonso-zaldivar, Associated Press Writer – Fri Jul 3, 7:25 am ET

...In a revamped health care system envisioned by senators, people would be required to carry health insurance just like motorists must get auto coverage now. The government would provide subsidies for the poor and many middle-class families, but those who still refuse to sign up would face fines of more than $1,000....

The Congressional Budget Office estimated the fines would raise around $36 billion over 10 years. Senate aides said the penalties would be modeled on the approach taken by Massachusetts, which now imposes a fine of about $1,000 a year on individuals who refuse to get coverage. Under the federal legislation, families would pay higher penalties than individuals.

Called "shared responsibility payments," the fines would offset at least half the cost of basic medical coverage, according to the legislation....

The legislation would exempt certain hardship cases from fines, which would be collected through the income tax system....


2 things jump out at me:

The fines would generate approximately 36 bilion over 10 years, and we are supposed to believe that will cover over 1/2 the cost of providing basic medical coverage to Americans? Initial cost estimates put the pricetag of national healthcare at $1 trillion over 10 years. Recent CBO revisions dropped that estimate to roughly $600 billion over 10 years. That's still a far cry from $36 billion in revenue collected by the IRS in fines over 10 years.

Who wants the IRS involved in their health care financing?

full article: http://news.yahoo.com/s/ap/20090703/..._care_overhaul