ATR Supports H.R. 2927, the "No Taxation Without Verification Act"
ATR is very supportive of H.R. 2927, the "No Taxation Without Verification Act," sponsored by Cong. Gus Bilirakis (R-Fl). All Members of Congress should co-sponsor this common sense legislation.
The bill provides a very simple protection for taxpayers: no tax or fee (or hike in taxes) can be implemented until the Treasury Secretary can certify with 100 percent no-fraud assurance that those applying for Obamacare exchange subsidies are accurately reporting their employer status, employee income level, and health care status.
In July 2013, the Obama Administration announced that those applying for Obamacare exchange subsidies would be doing so on "the honor system." This means that someone, innocently or not, could receive a much bigger exchange subsidy than they are entitled to. The "honor system" would accept as given answers to questions like: "does your employer offer qualifying, affordable health insurance at work?"; "what is your income level?"; and various questions about health status.
Should the exchange subsidy be bigger than what it should have been, the taxpayer could be on the hook for paying back the difference to the IRS. In the case of a taxpayer who made an honest mistake or was bullied into signing up by an Obamacare "navigator," this burden will be doubly-unfair.
H.R. 2927 prevents all this. It would effectively stop the rushed "honor system" exchange subsidy in its tracks. Unless and until taxpayers are protected from fraudulent or merely errant claims being made, they should not fear that their tax dollars are being used badly. H.R. 2927 is a good step toward delaying the "not ready for prime time" Obamacare law.