Drudge provokes lefties to demonstrate their ignorance on Obamacare and small business
I have to hand it to Matt Drudge. He has baited the left and gotten them to jump all over him, thereby indicting themselves as know-nothings, utterly ignorant on Obamacare and the way small business works in this country.
Matthew Boyle of Breitbart explains:
A White House aide set off a stampede of liberal media criticism for Internet news pioneer Matt Drudge over Obamacare – but his critics don't seem to understand how small businesses pay taxes.
The brouhaha started when Drudge tweeted, “Just paid the Obamacare penalty for not 'getting covered'... I'M CALLING IT A LIBERTY TAX.”
Jesse Lee, the Director of Progressive Media at Barack Obama's White House, responded that that was a “Flat lie, no fee for previous year,” adding, “Scary how much influence he once had.”
Lee’s response to Drudge set off a firestorm in the liberal media, with many mainstream media and left-wing reporters countering him on Twitter and in their own articles to claim he does not have to pay Obamacare’s Individual Mandate tax until next year. The individual mandate went into effect Jan. 1 of this year, and most people paying their taxes right now are paying taxes for 2013. (snip)
Drudge indicated in his followup tweets that since he is self-employed as the proprietor of The Drudge Report, he files as a small business. According to the IRS’s website for self-employed individuals, they are required to pay taxes quarterly.
“As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly,” the IRS website reads.
So, when they file and pay those 2014 first quarter taxes, such individuals have to pay the Obamacare Individual Mandate tax if they opted to not have health insurance—like Drudge just did.
Additionally, the IRS form (1040-ES) for estimating quarterly taxes specifically recommends adding the mandate penalty to line 12 for "other taxes" -- to pay before the first quarterly deadline of April 15.
Mike Nadler writes:
Conducting our own review of the Internal Revenue Service instructions for the 2014 Form 1040-ES Estimated Taxes for Individuals, we find the following on page 2 (in the continuation of the section starting on the first page headed "What's New") http://www.irs.gov/pub/irs-pdf/f1040es.pdf:
Health care coverage. When you file your 2014 tax return in 2015, you will need to either (1) indicate on your return that you and your family had health care coverage throughout 2014, (2) claim an exemption from the health care coverage requirement for some or all of 2014, or (3) make a payment if you do not have coverage or an exemption(s) for all 12 months of 2014. For examples on how this payment works, go to www.IRS.gov/aca and click under the “Individuals & Families” section. You may want to consider this when figuring your “Other taxes” on Line 12 of the 2014 Estimated Tax Worksheet. For general information on these requirements, go to www.IRS.gov/aca.
So Matt Drudge and Breitbart.com are absolutely correct in stating, and the White House and its liberal defenders in the media are completely wrong in denying, that a portion of the ObamaCare Individual Mandate tax can be due now.
In fact, this would be the case not only for self-employed individuals, but also for other taxpayers who will be subject to the 2014 ObamaCare Individual Mandate tax and have income that is not subject to withholding and therefore (subject to certain exceptions) required to file quarterly estimated tax payments. As indicated below, the first two paragraphs of the estimated tax form instructions referenced above include earnings from self-employment income as but one of several types of income that may subject an individual to estimated tax requirements.
Purpose of This Package
Use Form 1040-ES to figure and pay your estimated tax for 2014.
Estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). In addition, if you do not elect voluntary withholding, you should make estimated tax payments on other taxable income, such as unemployment compensation and the taxable part of your social security benefits
Richard Baehr adds:
This is an excellent response to the know nothings. What is incredible is how the left circles the wagons each and every time there is a critical story on Obamacare -- including attacking cancer patients. Every critical story requires their pushback.
They seem to understand how damaging the rollout has been, but fighting a hundred battles over the next year will not help their side in this year's elections, I think..