A few things that come to mind, now that the Supreme Court of the Land has determined that the penalty for not having health insurance is a TAX.
1. Will we be double taxed/penalized? If you do not have health insurance in Massachusetts you currently pay a penalty tax. Will citizens now have to pay a second penalty tax to the federal government? Is this legal or is this double taxation? Seems unfair to have to pay BOTH a state and federal penalty tax.
2. Since the penalty for not having health insurance under Obamacare is a tax, can we deduct it from our taxable income the same as all other taxes on our tax return? According to our tax code, any tax you pay is deductible. Can citizens deduct the penalty tax on their tax return? Seems only logical. Better yet, can we deduct the penalty tax from the state on our federal forms and deduct the penalty tax for the federal government on our state forms? This is gonna get complicated very quickly..
3. Can Illegal immigrants, who do not get health insurance and do not pay the tax, now be arrested by the state or federal government for tax evasion? Tax evasion is a serious, serious crime. Illegal immigrants, who tend not to pay taxes due to their illegal status, could be subject to a slew of new criminal charges.
What are the other tax implications of this now that Chief Justice John Roberts and the SCOTUS have determined that the penalty is really a tax.