I got an email from American Citizens Abroad asking for people to lobby against a proposed insurance health care excise tax that would impact those living outside the US. Apparently, coverage you have outside the US wouldn’t exempt you from the tax.
From what ACA sent me:
ACA is requesting that all members and supports email, fax and/or write their Senators in support of a change in legislative language to the bill “Americas Health Future Act of 2009″ authored by Senator Max Baucus In the September 16th version of this bill there is wording which would cause great hardship on American citizens living outside the US. The wording would leave Americans overseas exposed to paying an excise tax regardless of whether they carry health insurance via overseas health providers.
The purpose of the proposed excise tax is to encourage all Americans who benefit from the US health program to participate in its financing. Americans residing overseas can not benefit from the US health system so for them the excise tax is just that — a tax with no counter-part service. Currently the maximum excise tax per family for non-participation is $1,900.
Please help ACA to insure that Americans overseas are not unfairly taxed. Help ACA to bring this matter to the attention of the decision makers in Washington DC by writing to your representative today. Attached is a sample letter that you can use to write to your Senator. We strongly suggest that you fax your letters as this has the most immediate effect however, you may also email or hard copy mail. Visit the following websites for address information on your representative.
If I understand it correctly, health care coverage you might have when living outside the United States wouldn’t qualify to exempt you from the tax. That’s stupid, of course. When I lived in the UK, I had great health care — paid for by the taxes I paid to the UK government. Plenty of Americans outside the US have coverage in other ways. As long as they can demonstrate health care coverage, taxing them for not carrying it makes no sense.
More from ACA on the issue can be found here.
