econ extra - is extremely beneficial for those who do pay....

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Nicole Chan 3 rd May 2010 Serkan D Econ 103 Extra Credit: Current Event The article I found on CNN news related to microeconomics is the tax break for the Health Mandate. The article mentions excise taxes, the benefits principle and ability- to-pay principle. The article discusses the tax penalty implemented by the government on those who do not pay the required tax. For example, refusal to invest in health insurance results in a penalty or fee for neglecting the health mandate. There are higher taxes on married couples who choose to not have children, also known as the child mandate. Married couples with a higher income also receive a marriage penalty, solely based on their level of income. This new insurance mandate states that there will be an excise tax of approximately $2,000 in almost half a decade from now (2016) for families that do not have minimal health insurance. While this seems like a lot of ask for, the health mandate
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Unformatted text preview: is extremely beneficial for those who do pay. The benefits principle that we learned in class applies to this situation; people who have health insurance coverage reap the benefits of receiving instant medical treatment while those who do not have coverage are turned away. Due to the current state of economy and the increasing number of lay offs, people under the new health mandate still have health care coverage even if they lose their jobs due to pre-existing conditions. However, people who have a higher income are also getting taxed at a higher rate and are not happy with this. The ability-to-pay principle is applicable in this situation, people in this situation feel as if they are being taken advantage of by the government due to their larger income. http://money.cnn.com/2010/04/14/pf/taxes/health_insurance_mandate/index.htm...
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This note was uploaded on 10/21/2011 for the course ECON 103 taught by Professor Voorheis during the Spring '08 term at UMass (Amherst).

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