FixHealthCarePolicy

White House Admits Obamacare’s Individual Mandate is a Tax

Throughout his presidential campaign, then-candidate Barack Obama promised the American people: “If you’re a family that’s making $250,000 a year or less, you will see no increase in your taxes.” After he became President, Barack Obama reiterated that pledge, promising the American people in his September 9th health care press conference: “The middle-class will realize greater security, not higher taxes.” But Obamacare does contain tax hikes. Tons of them. From taxes on tanning beds to taxes on employment and investments, Obamacare is a certified job-killing machine.

None of these taxes touches the lives of every American as closely as the individual mandate to purchase health insurance. For the first time in American history, Obamacare forces all Americans to purchase a product or face sanction from the Internal Revenue Service. This is clearly a tax, as pointed out by ABC News’ George Stephanopoulos during a September 20th interview with the President himself. In an exchange that can only be described as “Clintonesque” Stephanopoulos pressed President Obama to admit his individual mandate was a tax. But President Obama refused to acknowledge reality and denied it. Stephanopoulos was forced to read the definition of “tax” straight from Merriam Webster’s Dictionary. But even then Obama refused to come clean: “George, the fact that you looked up Merriam’s Dictionary, the definition of tax increase, indicates to me that you’re stretching a little bit right now. … Nobody considers that a tax increase.” Well nobody but President Barack Obama’s Justice Department.

The New York Times confirmed Friday that in preparation for defending constitutionality of the Obamacare individual mandate in court, an Obama Justice Department legal brief argues that the penalty used to enforce the mandate is “a valid exercise” of Congress’s power to impose taxes. Mr. Obama’s own Justice Department further repudiates the President’s earlier statement by noting that the penalty is imposed and collected under the Internal Revenue Code, people must report it on their tax returns, and that the Congressional Budget Office estimates that it will cost Americans $4 billion a year. Yale Law School professor Jack Balkin told a meeting of progressive activists last month that President Obama “has not been honest with the American people about the nature of this bill. This bill is a tax.”

The fact that the Obama administration and their allies are now admitting the individual mandate is a tax betrays their very real fear that the Supreme Court could find Obamacare’s individual mandate unconstitutional. In the bill itself, Congress identified the Commerce Clause as the source of their authority to force all Americans to buy health insurance. But as our legal team has made eminently clear, the mandate does not purport to regulate or prohibit commerce of any kind. To the contrary, it purports to “regulate”—and penalize—inactivity. If the Supreme Court allows the Obamacare individual mandate to stand, then Congress could do anything it wanted. They could: require us to buy a new Chevy Impala each year to support the government-supported auto industry; require us to buy war bonds to pay for the Iraq and Afghan wars; or force us to eat our vegetables.

But even if the Obama administration is now admitting the individual mandate is a tax, that still does not make the law constitutional. Rather than operating as a tax on income, the mandate is a tax on the person and is, therefore, a capitation tax. Therefore the 16th Amendment’s grant of power to Congress to assess an income tax does not apply. The Constitution does allow Congress to assess a capitation tax, but that requires the tax be assessed evenly based op population. That is not how the Obamacare mandate works. It exempts and carves out far too many exceptions to past muster as a capitation tax. The Obamacare mandate is still unprecedented and unconstitutional.

But perhaps more importantly, what does the episode say about the integrity of the White House? The President went on national television and insisted in unequivocal terms that his individual mandate was not a tax. Now his administration is saying the exact opposite. At what point do the American people lose all faith in this President’s word?

Tags: constitutionality, Individual Mandate, job killer, ObamaCare, taxes

Sen. Hatch Calls for Repeal of Obamacare Mandates

“I’ve been working to dismantle Obamacare,” declared Sen. Orrin Hatch (R-UT). “We have to fight this terrible law that’s a threat to liberty itself.”

These comments came during a June 21^st blogger conference call held by Sen. Hatch in which he sought to rally support for two bills aimed at representing “a strategic attack on the central tenants of Obamacare.”

The American Liberty Restoration Act (S. 3502) would strike forthcoming individual mandates from the current law, while the American Job Protection Act (S.3501) would repeal what Hatch calls, a “job-killing employer mandate.”

Individual and employer mandates represent two of the most focused-upon issues on which Americans are challenging both the effectiveness and constitutionality of the health care law, signed by President Barack Obama in March. Indeed, Hatch cited that “there are now 20 states, including Utah, challenging this which the President signed into law.” (more…)

Tags: employer mandate, job killer, ObamaCare, repeal, unconstitutional

Side Effects: Medical Devices Tax Will Costs Jobs

There’s only one way to pull the economy out of the doldrums. We need more jobs. Now.

As Obamacare inched its way toward passage, boosters of the radical legislation began making bold new claims about its virtues. The bill, they said, would do far more than simply fix the health care system; it would create jobs and boost the economy, too.

[Oddly, they stopped short of claiming it would also help melt away the pounds as you sleep.]

Not surprisingly, the early evidence is quickly proving their claims to be false. (more…)

Tags: IRS, job killer, job loss, Medical device tax, ObamaCare, Side Effects

The Aftermath of Obamacare: What America Will Look Like If The White House Gets Its Way

America stands on the precipice of sweeping liberal health care reform that will radically reshape one-sixth of the U.S. economy, and a 153-page House bill is all that stands between us and a fundamentally changed America.

What will that change look like? Speaker Nancy Pelosi (D-CA) said, “we have to pass the bill so that you can find out what is in it,” and President Barack Obama said, “By the time the vote has taken place, not only will I know what’s in it, you’ll know what’s in it.”

In other words, here’s a ticket to ride, get on board, we can’t tell you where it’s going, but you’ll like it once you get there. We promise.

A picture of America’s future under Obamacare can be revealed, though, after peeling away the pages and digging through the dirt. Here’s 10 things you can expect:

(more…)

Tags: higher health care costs, House reconciliation bill, investment income tax, job killer, more taxes, Senate Health Bill, taxpayer-funded abortions, unconstitutional mandates

The House Health Fix: Even Higher Job Killing Employment Taxes

While the House reconciliation bill keeps many of the Senate provisions that will already slow economic growth, the reconciliation bill goes even farther in punishing employers who do not offer sufficient health care. These penalties will slow employment growth and given employers a disincentive to hire anyone who purchases subsidized health care.

Punishing Businesses That Hire Low-Income Workers
Businesses that already offer insurance can be affected by the reconciliation bill. Even if the employer does provide health insurance, if any employees qualify for, and accept, a premium subsidy on the basis of their family size and family income, the employer will have to pay a penalty of $3,000 per year for each qualifying employee. Even more businesses are in danger of this penalty since the reconciliation bill ups the subsidy amount, meaning that more workers could take it. This penalty depends not on how much that employer pays, (more…)

Tags: employer mandate penalty, House reconciliation bill, job killer, low-income workers, ObamaCare

A First Look At The House Health Care Fix: More Bad News

In their feverish effort to enact the Senate health bill, the House leadership recently released their 153 page bill to fix the underlying 2,409 page Senate legislation through the budget reconciliation process. As a matter of health policy, there is little that is substantively different between the Senate bill and this “fix it” bill. A closer look at the fine print shows that the latest version would only make the massive and unpopular Senate health bill even worse.

Based on a preliminary review of the key provisions, taxpayers should be aware of the following features of the legislation.

More Spending

– The House reconciliation bill increases taxpayer subsidies and lowers cost sharing for individuals receiving a federal subsidy to buy health coverage. This change adds to the overall cost of the bill, while depending on unproven savings and tax hikes to pay for it.

– Instead of removing special deals, the bill extends additional federal funding to all states for Medicaid. This “fix” is supposed to replace the scandalous requirement that federal taxpayers fund the Nebraska Medicaid expansion. In both case, however, the burden is back on the backs of federal taxpayers. (more…)

Tags: Cadillac tax, federal bureaucracy, House reconciliation bill, individual mandate penalty, job killer, Medicaid Expansion, Medicare cuts, Medicare investment income tax, more spending, Senate Health Bill, taxpayer-funded abortions