Changes

=== Impact on the deficit ===

=== Impact on the deficit ===

The Congressional Budget Office (CBO) projects that Obamacare’s refundable health insurance tax credits (or [[tax expenditure]]s<ref>[http://www.concordcoalition.org/publications/facing-facts/1996/0913/back-door-entitlement The Back-Door Entitlement], The Concord Coalition.</ref> in D.C. parlance) will add to the [[national debt]] $1.36 trillion in the first seven years of implamentation. 85% of filers who claim the tax credit will end the year with zero or negative income tax liability. Since the tax credit is refundable, nearly all 11.3 million of these filers will have negative income tax liability and will no longer pay the cost of government by contributing federal income taxes.  Tax credits, or tax expenditures, are a form form of federal [[backdoor spending]].  

The Congressional Budget Office (CBO) projects that Obamacare’s refundable health insurance tax credits (or [[tax expenditure]]s<ref>[http://www.concordcoalition.org/publications/facing-facts/1996/0913/back-door-entitlement The Back-Door Entitlement], The Concord Coalition.</ref> in D.C. parlance) will add to the [[national debt]] $1.36 trillion in the first seven years of imp lamentation. 85% of filers who claim the tax credit will end the year with zero or negative income tax liability. Since the tax credit is refundable, nearly all 11.3 million of these filers will have negative income tax liability and will no longer pay the cost of government by contributing federal income taxes.  Tax credits, or tax expenditures, are a form of federal un-appropriated [[backdoor spending]].  

For example, a family of four at 200 percent of the Federal Poverty Level (about $48,677 in 2016) cannot pay more than 6.35% of their income for health insurance. The CBO estimates that the average cost of the reference insurance plan (the plan used to calculate the tax credit) will be $14,100 for family coverage in 2016.  Therefore, a family of four that qualifies for a credit in 2016 and that makes $48,677 would be required to pay about $3,067 for health insurance (6.3% of household income).  The difference, $11,033, is the value of this family’s refundable tax credit.  According to the CBO, 20 million Americans will receive health insurance tax credits in 2020 at a cost of $130 billion.<ref>[http://oversight.house.gov/wp-content/uploads/2012/02/10-27-11_Obamacares_Subsidies_and_Tax_Distribution_Final.pdf Impact of the Obamacare Tax Credits], House Committee on Oversight and Government Reform, Staff Report, October 27, 2011.</ref>

For example, a family of four at 200 percent of the Federal Poverty Level (about $48,677 in 2016) cannot pay more than 6.35% of their income for health insurance. The CBO estimates that the average cost of the reference insurance plan (the plan used to calculate the tax credit) will be $14,100 for family coverage in 2016.  Therefore, a family of four that qualifies for a credit in 2016 and that makes $48,677 would be required to pay about $3,067 for health insurance (6.3% of household income).  The difference, $11,033, is the value of this family’s refundable tax credit.  According to the CBO, 20 million Americans will receive health insurance tax credits in 2020 at a cost of $130 billion.<ref>[http://oversight.house.gov/wp-content/uploads/2012/02/10-27-11_Obamacares_Subsidies_and_Tax_Distribution_Final.pdf Impact of the Obamacare Tax Credits], House Committee on Oversight and Government Reform, Staff Report, October 27, 2011.</ref>