Friday, July 6, 2012

So, the Individual Mandate IS a Tax

So despite all the efforts from those on the Left that did their very best to avoid referring to the individual mandate in the Obamacare law as a tax, it turns out that it will have to be called just that.  In what probably was the strangest turn of events in recent memory, it was Chief Justice John Roberts (the so-called conservative G.W. Bush appointee) that sided with the liberal majority that voted to uphold the mandate as constitutional.  The twist is the mandate is unconstitutional under the Commerce Clause and the Necessary and Proper Clause, but the mandate could be constitutional under Congress' taxing authority.  That's right.  Because the federal government can levy taxes on its citizens, it can require someone to pay a tax for not purchasing health insurance.  So wait, the government can't force anyone to purchase health insurance but they can force you to pay a tax for not buying it?

Now the Democrats face a dilemma.  After so much time and energy was spent arguing against calling the mandate a tax, they will have to refer to it as a tax or be forced to admit that it is indeed unconstitutional.  Also, supporters of the law will celebrate the Supreme Court's ruling. "They got it right!," they will say. But while there are numerous new taxes as a part of the law, the mandate itself was never intended as or written to be a tax.  So while they shout "They got it right!," deep down inside they will sheepishly say, "They got it wrong," because at the end of the day, the Supreme Court misinterpreted the intent of the mandate.

This law is still all bad.  The individual mandate will join the lengthy list of new taxes in Obamacare that will affect the middle class.  It is a disaster for business owners.  Is it not possible to think that a small business owner might just elect to pay the tax (or penalty) rather than provide the mandatory coverage that might just bankrupt him?  Or how about about a business owner letting one or two employees go to remain under the maximum number of employees a business can have before being required to provide coverage?  These are real possibilities.  Not to mention that the administration now admits that it will be impractical for businesses to continue provide existing coverage to their employees after 2013.  None of this matters, however.  What is really important is that finally, everyone will have health insurance.  Oh, except for the 26 million Americans that will still be without coverage.

So now what we have is almost Universal health care coverage that will require everyone to buy health insurance or pay a tax.  Who wants this?  A recent poll by the Kaiser Family Foundation indicated that 70% of Americans thought the individual mandate was a bad idea.  I don't think that calling it a "tax" will change their minds.

Anyway, don't mind me, I'm just rambling.