IRS overpaid nearly $3.5 billion in Obamacare tax credits in 2017, can’t recoup money
Tom Howell Jr. - The Washington Times - Wednesday, February 7, 2018The IRS overpaid nearly $3.5 billion in Obamacare tax credits last year that it cannot recoup because of constraints built into the program, frustrating Republicans who have failed to repeal the health care law but say that money could have been spent on programs for veterans or infrastructure.
A Treasury watchdog said the government paid out roughly $24 billion in Obamacare subsidies in the heart of the 2017 tax-filing season, with $5.8 billion in overages. Of that, just $2.3 billion was clawed back, leaving $3.5 billion in outstanding excess payments.
“The overpayments were that much?†said Rep. Phil Roe, Tennessee Republican.
He said he is trying to expand an assistance program for older veterans and their caregivers. “I can think of a lot of things I can use $3.5 billion dollars for,†he said.
Most Obamacare exchange customers receive taxpayer-funded subsidies to help cover their premiums.
The amount they receive is based on their expected earnings. At the end of the year, they are supposed to reconcile what they anticipated with what they actually earned. Because some received higher incomes — through raises, promotions or better jobs — they have to repay the IRS.
But authors of the 2010 law were afraid that the threat of a big tax bill would discourage people from buying Obamacare coverage altogether, so they set limits on the amount of money the government could claw back.https://www.washingtontimes.com/news/2018/feb/7/irs-overpaid-obamacare-tax-credits-nearly-35-billi/
Well isn't that nice. The authors of Obamacare set it up so that
people Democrats could commit fraud and get away with it.
