78% of New Jersey households hit by the tax make less than $50,000 per year
The Republican tax cuts signed by President Trump repealed the Obamacare individual mandate tax nationwide, but New Jersey residents will be stuck paying it due to the state’s Democrat legislature and governor. Governor Phil Murphy on Wednesday signed the new tax into law that will impose the tax on residents who choose not to purchase “qualifying” health insurance as defined by Obama-era regulations.
New Jersey’s Obamacare tax will disproportionately hit low and middle income New Jersey taxpayers:
-78% of New Jersey households hit by the Obamacare mandate tax make less than $50,000 per year. According to the IRS, the Obamacare mandate tax hit 188,570 New Jersey families and individuals in the most recent year of available data. 146,910 of these taxpayers made less than $50,000 per year – 78 percent of those impacted by the mandate.
-38% of New Jersey households hit by the Obamacare mandate tax make less than $25,000 per year. That’s 70,830 New Jersey households.
-New Jersey households paid a total of $93,342,000 in Obamacare individual mandate taxes in the most recent year of available data.
The new tax, just like the old one, forces New Jerseyans to purchase health care whether they want it or not. The original Obamacare tax required a family of four to pay 2.5 percent of their income or $2,085 – whichever was higher. The tax required an individual to pay $695 or 2.5 percent of his income – whichever was higher.
On a federal level, the results are also grim. 79 percent of households that got hit with the Obamacare individual mandate tax in 2015 made less than $50,000 a year. 37 percent of households made less than $25,000 a year. In total, 6,665,480 households paid $3,079,255,000 in individual mandate tax penalties in 2015.