Saturday, July 27, 2013

Employers who take advantage of the delay will be on very shaky legal grounds

Obamacare's Employer-Mandate Delay Creates Two Big Problems - John R. Graham/Forbes

On July 2, 2013, the U.S. Treasury Department announced, by blog entry, that it would delay collecting taxes due to Obamacare’s employer-mandate by one year. This was followed by a more formal announcement on June 9: Notice 2013-45. Although greeted as a relief by many, the move actually raises two significant problems for businesses and taxpayers during Obamacare’s roll-out.

First, the delay implies that Congressional Budget Office (CBO) scores of government health spending will become even less realistic than they currently are. Second, employers who take advantage of the delay will be on very shaky legal grounds. Explanation, at the link.