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InsiderOnline Blog: February 2011

Obamacare Makes the IRS Bigger

Remember that 10 percent excise tax on sun tanning salons that was part of funding Obamacare? The Internal Revenue Service says it will need 81 new employees devoted just to collecting that tax, and those workers will cost taxpayers $11.5 million. But that’s just part of the $65.6 million the IRS is requesting to enhance compliance with the tax law changes made by Obamacare. In addition, the IRS says it will need $213.5 million to manage the new tax credits created by Obamacare, $57.7 million to administer the new reporting requirements on employers and health insurers, and $62.4 million to implement the individual health insurance mandate.

These are just the costs of additional bureaucracy at the IRS; they don’t reflect the dollar value of any benefits delivered under the program. Government programs are leaky buckets.

Posted on 02/16/11 01:10 PM by Alex Adrianson

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