First it was a penalty. Then it was a tax. Now it’s a penalty again.
The war of words over what to call the fine attached to the federal health care overhaul’s most controversial provision continued Friday, as the White House took issue with the Supreme Court’s argument — even though that argument alone spared President Obama’s law.
The five-justice majority argued that, while the fine imposed by the law for not buying health insurance would otherwise be unconstitutional, the fine is actually legal under Congress’ authority to tax.
Ergo, the fine is officially a “tax” in the eyes of the court. The law stands.
But in a case of biting the hand that feeds, White House Press Secretary Jay Carney said Friday the fine is still just a “penalty.”
Calling it a “tax” causes obvious political problems for the White House. Obama fought that label vigorously when selling the bill in 2009.
Carney went on to say Friday that the “penalty” will affect only about 1 percent of Americans, those who refuse to get health insurance. He said the penalty was modeled after the one put in place in Massachusetts when Mitt Romney was governor.
“It’s a penalty, because you have a choice. You don’t have a choice to pay your taxes, right?” Carney said.
Carney was initially reluctant to assign a label to the fine when pressed repeatedly by reporters Friday. “Call it what you want,” he said.
But describing the fine as a “penalty” helps fight Republican claims that the court ruling confirms the Obama administration raised taxes with its health care law.
Republicans threatened to use that argument against the president and Democrats in the 2012 election.
Sen. Marco Rubio, R-Fla., told Fox News the ruling means the law becomes a “middle-class tax increase.” He said the IRS will “come after” people who don’t pay.
Meanwhile, the Obama administration pressed ahead Friday with implementing the law. The Department of Health and Human Services was announcing a new program to help states set up so-called health insurance exchanges, which were established under the law.
While Romney vows to repeal the law if elected, Obama has vowed to press forward with implementation.
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8 Responses
Call it a bannana or whatever. Its a way of getting uninsured people to buy insurance so they don’t turn up at the emergency rooms of public hospitals and stick their bills to the rest of us. We pay billions each year in public funds to reiumburse hospitals for medical costs from uninsured freeloaders. This tax/penalty/bannana is not enough to motivate all uninsured persons to get fully insured but most studies indicate it will influence at least half or more do buy some coverage.
Maybe Justice Roberts was on our side after all. Taxes don’t need 60 votes in the Senate to be repealed.
What matters is that it can be repealed without facing a Senate fillibuster, and that the “gutting” of the Commerce Clause might it much harder to use as a device for social engineering.
Well, if the president believes it’s a penalty, then he has a duty not to implement it. He swore an oath to uphold the constitution, and a penalty is unconstitutional.
“It’s a penalty, because you have a choice. You don’t have a choice to pay your taxes, right?” Carney said.
I just noticed this. What a chutzpah. It’s precisely the fact that you have a choice, and you’re entitled to pay the money and not get insurance, that Roberts cited as proof that it is a tax. Have you ever heard of a penalty that you’re fully entitled to choose to pay instead of complying with the law? You can’t deliberately speed just because you’re willing to pay the ticket.
Gadolhadorah,
Please tell me how I the taxpayer pays for someone who goes to the ER without insurance. That’s been a nonsensical argument from your end since day one. The hospital does NOT pass the bill to Uncle Sam.
With up to 2 supreme court justices retiring in the next four years, do you really want to leave the majority of the court to people who dont beleive and follow our Constitution as it was written? NO WAY! For this reason alone it is IMPERATIVE to vote Obama as well as each and every Socialist/Liberal & RINO OUT off office. There is NO choice!
I still don’t get it!
How does this law help the uninsured? (referring to the families who are not eligible for Medicaid but who can’t afford to buy insurance?)
Now one has to pay the penalty and still have NO INSURANCE!
To #1
What if he doesn’t go to the emergency room and he pays for his doctor (I.e. 2 a year) a few hundred dollars, not shoving down the bill down everyone’s throat; why should he be liable to pay a “Penalty/Tax/Banana?????
Stupid Law! (It wasn’t well thought out, it was 100% Political)