Matt Drudge of Drudge Report has come under attack for a tweet he sent out stating he had just paid the Obamacare opt-out penalty.
Just paid the Obamacare penalty for not ‘getting covered’… I’M CALLING IT A LIBERTY TAX!
— MATT DRUDGE (@DRUDGE) March 21, 2014
This ‘LIBERTY TAX’ tweet sent a fire-storm of attackers on the march claiming that the tax penalty does not have to be payed until 2015. There’s just one small problem: they don’t understand how small business works.
Self-employed individuals, as is the case with Drudge, are required to pay estimated taxes quarterly.
So, when those estimated taxes are paid in quarterly, they must also pay the penalty for opting out of the Obamacare Individual Mandate.
As reported from Breitbart.com:
Additionally, the IRS form (1040-ES) for estimating quarterly taxes specifically recommends adding the mandate penalty to line 12 for “other taxes” — to pay before the first quarterly deadline of April 15.
“It is true that thousands of small businesses will be forced to pay Obamacare taxes quarterly in 2014,” a Senate Budget Committee aide told Breitbart News on Friday afternoon.
Critics continue to respond to Drudge that he’s paying too early.