Obamacare upheld — as the tax Obama promised us it wasn’t

UPDATE at 11:59 a.m.: The president is expected to comment on the ruling at 12:15 p.m. One wonders how his remarks will square with White House talking points from the Obamacare debate, such as:

What President Obama is proposing is not a tax, but a requirement to comply with the law.

and

People are required to obey the speed limit and have to pay a penalty if they get caught speeding? Does anyone consider that a tax?

and

People are required to have car insurance and can be fined if they are caught without it. Is that a tax?

In one of the court’s other decisions today, United States v. Alvarez, the justices upheld American’s First Amendment rights to lie about receiving military honors. In the Obamacare ruling, the majority upheld politicians’ First Amendment rights to lie about their policies. Not that anyone thought that kind of lying would ever stop.

UPDATE at 11:42 a.m.: At first blush, any cheers for the court’s declining to uphold Obamacare based on the Commerce Clause should not be too loud.

Writing for the majority, Roberts says, among other things:

People, for reasons of their own, often fail to do things that would be good for them or good for society. Those failures — joined with the similar failures of others — can readily have a substantial effect on interstate commerce. Under the Government’s logic, that authorizes Congress to use its commerce power to compel citizens to act as the Government would have them act. That is not the country the Framers of our Constitution envisioned.

Sounds pretty strong, huh? Maybe even strong enough to place a firm limit on congressional powers under the Commerce Clause?

Maybe so. My guess, however, is that Congress will simply rely less on its Commerce Clause powers in the future and resort to its taxing powers, because Roberts shortly makes clear that this limitation applies only to “police powers” — that is, Congress cannot criminalize inactivity.

Turning to Congress’ taxing powers, Roberts seems to undercut everything he wrote about regulating inactivity:

Under the mandate, if an individual does not maintain health insurance, the only consequence is that he must make an additional payment to the IRS when he pays his taxes. … That, according to the [Federal] Government, means the mandate can be regarded as establishing a condition — not owning health insurance — that triggers a tax — the required payment to the IRS. Under that theory, the mandate is not a legal command to buy insurance. Rather, it makes going without insurance just another thing the Government taxes, like buying gasoline or earn­ing income. (emphasis added)

Viewed in the lens of taxation, then, inactivity is “just another thing,” like … wait for it … activity. So, everything Roberts wrote about Congress’ inability to regulate inactivity amounts to this: Congress can’t throw you in jail for not doing something, but it can take away your personal property for not doing something. This is hardly a comforting limitation.

UPDATE at 11:05 a.m.: The coalitions of justices on various parts of the ruling are a bit tricky to follow, but the bottom line is that Chief Justice John Roberts, appointed by President George W. Bush, voted to uphold the law in its entirety, while Justice Anthony Kennedy, a Reagan appointee and the supposed swing vote of the court, voted to throw it out in its entirety. So, while Kennedy had been seen as the one who would decide the law’s fate, he went right and the court went left. That’s one of many ways this precise ruling — not the broad outcome, but how a majority of justices reached it — is completely unexpected.

UPDATE at 10:55 a.m.: Finally have the ruling. It’s pretty clear why CNN blew it — and, oh, did they blow it, reporting first that the mandate was struck down. From page 2 of the summary:

CHIEF JUSTICE ROBERTS concluded in Part III–A that the individual mandate is not a valid exercise of Congress’s power under the Commerce Clause and the Necessary and Proper Clause.

But then you turn to page 3 …

CHIEF JUSTICE ROBERTS concluded in Part III–B that the individual mandate must be construed as imposing a tax on those who do not have health insurance, if such a construction is reasonable.

And page 4 …

CHIEF JUSTICE ROBERTS delivered the opinion of the Court with respect to Part III–C, concluding that the individual mandate may be upheld as within Congress’s power under the Taxing Clause.

So, it’s a tax. Which is exactly what the Obama administration said it wasn’t while it was trying to pass the bill, and then reversed itself and said it was once the law got to court. That distinction may also have implications for repealing the bill.

More to come.

ORIGINAL POST:

The Supreme Court has upheld Obamacare as constitutional; beyond that, I can’t say much yet. There have been so many contradictory reports — including about the size of the majority — that I’m not going to comment further until I’ve read the opinion myself.

– By Kyle Wingfield

Find me on Facebook or follow me on Twitter

474 comments Add your comment

Just saying..

June 28th, 2012
11:39 am

Lil’ Barry Bailout (Revised Downward)
June 28th, 2012
11:06 am: If you wanted to see some energized voters come November, you got your wish.

Lil Barry- We still count just the Number of voters in America; the wild-eyed ones get no extra cred.

Ray

June 28th, 2012
11:39 am

Life, Liberty and the Pursuit of Happiness is nothing without life!

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
11:39 am

td, Obama DIDN’T lie.

His House and Senate a$$-wipers thought they could get this though (politically) by using the Commerce Clause as a valid argument, thereby avoiding the “raising taxes” argument and associated fallout.

Once it was challenged, they saw their hope for keeping it in place slipping away under the Commerce Clause, so they merely changed tactics. They argued that the Court could uphold the law under BOTH, hedging their bets all the way.

No lie here.

Just political miscalculation in the long run.

Ray

June 28th, 2012
11:40 am

It should not come for free, so run a tab. Take my tax refund, but please don’t deny me life!

Tiberious, Refute this

June 28th, 2012
11:42 am

No actually you take stupidity and ignorance to a new level daily.

Not necessarily with the content of your comments but with your insistence that if you say it, it must be true, and it is incumbent upon the reader of your comments to debunk them. The problem is that your assertions are just that: assertions based in your own conception of reality. When you say millions of Americans are going to be dropped from their employers health plans you are engaging in nothing more than speculation. But you present it as fact and expect others to refute what you have in your mind.

For someone who talks constantly about logic you seem to be completely devoid of any.

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
11:43 am

Reagan (and others), why are you afraid to debate me on the politics of this decision?

Obama care is Constitutional – got it.

Have you got anything else today as regards this campaign?

Or has this big, giant tax increase turd that just got tossed in your lap got you all flummoxed?

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
11:43 am

Ray, there is no Justice Warren on this court.

Get with the 21st Century, will ya?

Ray

June 28th, 2012
11:44 am

God bless those “who have theirs”, really! You deserve it, but don’t ask for my life, just because I might have fallen between the cracks, or upon hard times for a moment or time in my life. We have a lot more work to do, but just saying “screw you”, doesn’t have to be the American way. Let’s raise the value of life to more than the first few moments of life.. We don’t all have to be mean. Romney please show your passion for life.

Lee

June 28th, 2012
11:44 am

A tax is a fee imposed on a financial transaction using the transaction as a basis for colleting a portion of the revenue from the transaction. A fine is a fee imposed on an entity in consideration of an action of an entity without any tie to a financial transaction that would fund/support the fee.
Just because something is collected as part of a tax collection process does not make it a tax.
If you do not file taxes you are still liable for this fine. This effectively establishes a collection method associated with filing your taxes for an imposed fine.
Please feel free to clarify this if I am not understanding how this law is enacted.

I demand to see Cheesy Grits Birth Certificate- Long Form Please

June 28th, 2012
11:45 am

No more free rides.

You wanna drive a car … You have to have insurance.

You wanna live in this country… You have to have health insurance.

No more passing along the costs to us honest folks.

NO MORE FREE RIDES !!!!

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
11:46 am

Refute this, I suggest you remain true to your moniker and actually refute my assertions with something other than “I disagree”.

Please provide something of intelligence and detail when trying to get past “I disagree”.

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
11:48 am

Lee, your logic is impeccable, but Chief Justice Roberts disagrees with you.

Finn McCool (The System isn't Broken; It's Fixed)

June 28th, 2012
11:49 am

Next thing we mandate?

BROCCOLII!!!!!

and the CHEESY GRITS!!!! Buy them or pay a penalty!

Lee

June 28th, 2012
11:50 am

Ok, I must then be contented to know that Chief Justice Roberts is wrong but there is not much I can do about it.

I demand to see Cheesy Grits Birth Certificate- Long Form Please

June 28th, 2012
11:50 am

Finally we have in this country what every other civilized country in the world has.

Universal Healthcare.

Its a proud day to be an American.

Reason

June 28th, 2012
11:50 am

I am amazed about how little the average citizen knows about health care in our country. We are currently paying for the care of our fell,ow citizens who cannot afford health insurance. We are also paying for th

Just saying..

June 28th, 2012
11:51 am

It seems Tib is going to be one of those energized voters this November.

One.

Finn McCool (The System isn't Broken; It's Fixed)

June 28th, 2012
11:51 am

Tiberius thinks we all have 24/7 free time to write up dissents to his uber-thoughts. Or that we even care a rats-patooety to refute his uber thoughts.

Man, there is something to be said for living in your mammas basement. Daddy paying your rent, paying for that internet connection. Lots of free time. Right, Tiberius? Living the dream, baby…living the dream!

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
11:52 am

From Yahoo News: Democratic Senate Majority Leader Harry Reid took to the Senate floor to declare that “passing the Affordable Care Act was the greatest single step in generations toward ensuring access to affordable, quality health care for every person in America, regardless of where they live, how much money they make.”

But, he acknowledged, “when we come back here after the elections, there may be some things we need to do to improve the law.”

Harry, more of you aren’t coming back there in 2013. Your majority just got significantly smaller.

iggy

June 28th, 2012
11:54 am

“Why should I have to pay for scumbag deadbeats who go to the emergency room to get treated and dont pay the bill ?”

Unfortunately, thats not how its going to work. For not paying for ones insurance the IRS has no rules on how to enforce the penalty.

This is no more than another govt freebie for the Obama camp of robots. Will undocumented workers showing up at the emergency room be turned away, due to lack of insurance? NO. Will the bums who currently refuse to get insurance now get it? NO.

This is a tax on the rich/well to do. Nore more no less.

Thanks SotoMayerMcCheese
Thanks Elan “The bearded lady” Kagan.

Finn McCool (The System isn't Broken; It's Fixed)

June 28th, 2012
11:54 am

Kyle mentions that CNN flubbed it. But no mention of his beloved Fox News flubbing it too?

Fox News made a similar call, flashing a graphic that the health care law’s individual mandate had been ruled unconstitutional. Widely called a Dewey defeats Truman moment, the errors were probably the highest profile tv news flub since Florida was called for Al Gore in 2000.

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
11:55 am

“Tiberius thinks we all have 24/7 free time to write up dissents to his uber-thoughts.”

No, Finn. I just find it predictable that you have nothing but a “spike the ball” mentality this morning, and can’t think past that mentality.

Lee

June 28th, 2012
11:56 am

You say “every other civilized country” like it is a good thing. I have lived in other “civilized” countries and seen the private “clinics” outclass the hospitals because the “Universal Healthcare” was crap. Just because a “civilized country” has something does not automatically make it effective or good.

Jefferson

June 28th, 2012
11:58 am

The name calling is the funnies part, dang people show some dignity…

Road Scholar

June 28th, 2012
12:00 pm

Romney’s talking now. He said we would NOT be able to have our present insurance coverage. What BS! That it was a tax increase of $5B. The money goes to the private sector (esp since there is no single payer system …at the request of the Repubs), unless you decline to purchase. The law allows the setting up of health care market places to compare coverages and costs (something Ga punted down the line), which is one of Mitts desires.

Now, all you self taught “constitutionalists” Squeal like a pig! Oh and how do you like those apples!

Reason

June 28th, 2012
12:01 pm

We are also paying for the health care of those who cannot afford health insurance but are also paying for the healthcare of those citizens who can afford health insurance but behave in an irresponsible manner and spend their funds on other material things. When these two groups of citizens become ill or suffer injury we pay for their charity care through cost shifting by providers of healthcare which results in higher cost of services and higher premiums for the insured. We pay for healthcare through property taxes to fund local public clinics and hospitals. We pay for Medicaid through sales tax and income tax. We are the only civilized country in the wo

St Simons - we're on Island time, mon

June 28th, 2012
12:01 pm

mrsstsimons is offering free counseling for the rest of the week,
so there is no need to go all Eric Rudolph or McVeigh on us, cons.
jus sit right down- why do you feel like u dont belong in the 21st century?
heheh

Gm

June 28th, 2012
12:03 pm

President Obama I am sure the milliions of children who have cancer and families who have been layed off who have sick children and can not afford to get help,
Thank you.

Mark

June 28th, 2012
12:03 pm

td

June 28th, 2012
11:23 am

The bill was unconstitutional under the commerce clause. Obama told the American people over and over again that the individual mandate was not a TAX but 5 justices said said it was a tax and therefore was constitutional under the taxing ability of congress.

Here is a fact that I want to hear you libs spin. OBAMA lied to the American people and now has placed the largest tax increase in American history on the poor, working poor and middle class.

This is a beautiful day! Td I’m sure the Surpreme Courts decision to uphold the Health Care law you repubs call “ObamaCare” just makes your republican blood boil!

Great Day for America

OBAMA 2012!!!

Jimmy62

June 28th, 2012
12:05 pm

Pelosi did say we needed to pass it to find out what was in it. I guess that goes double for all the backers (Obama, Democrats, Pelosi herself, Jay Bookman, and most of the left) who told us it was not a tax. Boy were they wrong.

Sadly, most of the left will now be congratulating them for passing massive legislation they didn’t even understand.

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
12:05 pm

“He (Romney) said we would NOT be able to have our present insurance coverage.”

You won’t. Employers will now drop private coverage to save expenses, Road.

“That it was a tax increase of $5B.”

Don’t know if the figure is correct, but the tax increase comment is 100% accurate. Good for Mitt!

“The money goes to the private sector (esp since there is no single payer system …at the request of the Repubs), unless you decline to purchase.”

What private sector, Road? Who is going to stay in the business of providing health care insurance if the “tax” doesn’t cover the cost of coverage?

You really haven’t thought this one through.

Gm

June 28th, 2012
12:06 pm

Hey 3 time college drop out Sean Hannity, you have brain washed your viewers so much, you have looked like a idiot against President Obama every time””’

Jimmy62

June 28th, 2012
12:06 pm

Finn: Perhaps he didn’t know because he was watching CNN, not Fox?

Lil' Barry Bailout (Revised Downward)

June 28th, 2012
12:07 pm

Can any of you Obozocare supporters explain what the government now CANNOT require you to do (without paying a tax)?

Tiberious, Refute this

June 28th, 2012
12:08 pm

Let’s look, shall we at your assertion and opinion (note, it is not a fact) that this is a huge tax increase.

The numbers suggest that roughly 16% of the population does not have health insurance. http://money.cnn.com/2011/09/13/news/economy/census_bureau_health_insurance/index.htm

About 35% of that number have been denied coverage based on pre-existing conditions who will now be able to obtain coverage.
That leaves the other 65% or about 30 million people. Now the question turns to how many are uninsured by choice. That number is unknown and, unlike you, I’m unwilling to insert my opinion into this argument.

The bottom line is that, if you take the numbers as they sit now the tax for not having coverage can be applied only to that 10% of the population without coverage and I’m giving you the gift of assumption by accepting the fallacy all of the 10% are uninsured by choice and that the number won’t go down because I have no proof it will. Just as you have no proof for your imagined crisis of the health care apocalypse of millions being dropped by their employers.

Now when a tax only applies to 10% of the population AND the amount of that tax is unknown how can you claim the logical high ground in saying that it will be the largest tax increase in US history.

I’ll give you a hint. It’s your opinion db. It’s not a fact, it’s just one guys guess. You are entitled to that opinion and you are entitled to screech it at the top of lungs here.

What you are not entitled to do is assert that your opinion is fact and without “rebuttal” your facts stand unassailed. I mean you can, but no one of any decent intelligence is going to take you seriously.

Now I have to go. Nessie needs another drink.

Rafe Hollister, s avalancheuffering through Oblamer's ineptocracy

June 28th, 2012
12:10 pm

I said here the other day that Roberts worried me. He has stated that he feared his court would be viewed as ideologically driven. I said that I feared Roberts would worry more about his legacy than doing what he believed was right. I think he proved that today, being viewed positively by history and the MSM in the short run, is what he is about.

I think Roberts moved ahead of Justice David Souter as a turncoat.

The court has left the future of America in the hands of the voters. Unless we elect Romney, and a GOP controlled congress, we are headed for bankruptcy, perpetual high unemployment, and a rapidly devaluing dollar. Time to look out for ourselves and start finding ways to protect our hard earned savings, and lessen the effect on each of us by the coming debt driven avalanche.

The power of the Federal Gov has been increased exponentially, with a Dem controlled congress and Oblamer, there is really nothing that they can’t tax into happening now. Sad day for America.

zebra

June 28th, 2012
12:11 pm

Just out of curiosity, how in the world can the right-wing prophets of imminent doom say this is the biggest tax increase in history without a clue as to how many people will not get insurance?

Short answer-they cannot.

Road Scholar

June 28th, 2012
12:11 pm

“He (Romney) said we would NOT be able to have our present insurance coverage.”

You won’t. Employers will now drop private coverage to save expenses, Road.

LIKE THEY ARE NOW? COVERAGES ARE BEING REDUCED, IF YOU CARE TO NOTICE AND SEE THE TREND THE PAST 20 YEARS!

“That it was a tax increase of $5B.”

Don’t know if the figure is correct, but the tax increase comment is 100% accurate. Good for Mitt!

“The money goes to the private sector (esp since there is no single payer system …at the request of the Repubs), unless you decline to purchase.”

What private sector, Road? Who is going to stay in the business of providing health care insurance if the “tax” doesn’t cover the cost of coverage? THAT IS WHY THE MARKET WILL ADJUST AND OFFER DIFFERENT PLANS AND COVERAGES AND COSTS, FROM A “YUGO” PLAN TO A “CADILLAC” PLAN

You really haven’t thought this one through. OH YES I HAVE! STOP WHINING. IT DOES NOT BECOME YOU. YOU ARE SMARTER THAN THAT! YOU LOST! GET OVER IT!

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
12:13 pm

LBB, this is where Robert’s logic gets a bit murky.

Given that a tax is supposed to be a percentage of the cost of a product or service, he’s making the (convoluted) case that since some people (but not all) will use emergency room services in their lifetime, that they now have to pay that “tax” in a pre-services kind of way.

Of course, he fails to realize that for every person that does use emergency services, there are tens of thousands who never will, thereby taxing them for something they will never use.

It is a curious brand of logic to be sure, and something wholly in line with the illogical “thinking” of the left.

md

June 28th, 2012
12:14 pm

In another be careful what you wish for moment, this bill does not account for the millions of dollars it will cost each state to operate and maintain this program………and the states are already cutting the basics such as education………hang on for the ride folks, this may get ugly.

Lil' Barry Bailout (Revised Downward)

June 28th, 2012
12:14 pm

No, Road, freedom and liberty lost. That equates to a win for Obozo.

Sick.

And very, very sad.

We aren’t living in America any longer.

Rightwing Troll

June 28th, 2012
12:15 pm

Where’s Andy? This is no fun without Andy’s childish tirades..

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
12:16 pm

Refute this, you missed the point entirely.

This will not be limited to just that 10% you downplayed.

Most employers will now drop their private coverage, thereby exponentially increasing the taxes on their employees, and driving them to uncertain and unfamiliar coverage to boot.

Finn McCool (The System isn't Broken; It's Fixed)

June 28th, 2012
12:16 pm

gotta listen to hannity on the way home today. Meltdown all over the place. mwuahahahahaha

WAIT

June 28th, 2012
12:17 pm

It is a curious brand of logic to be sure, and something wholly in line with the illogical “thinking” of the left.

Hang on. Roberts is a liberal now?

Finn McCool (The System isn't Broken; It's Fixed)

June 28th, 2012
12:17 pm

Most employers will now drop their private coverage

When Tiberius begins a statement with “Most employers” you know the BS/dreams are about to follow.

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
12:19 pm

Road, the private health insurance market will largely disappear, as they can no longer afford to cover people who are simply being “taxed”.

Unless that tax is fairly significant, which is the LAST thing Obama needs to have happen.

iggy

June 28th, 2012
12:19 pm

“If you cant afford the insurance premium you will recieve a credit that helps pay for it.”

Strait from the mouth of the grand poobah.

Tiberius - Banned from Bookman's and proud of it!

June 28th, 2012
12:20 pm

“Roberts is a liberal now?”

He certainly isn’t a conservative with this ruling, WAIT.

Tiberious, Refute this

June 28th, 2012
12:20 pm

No Tiberious, I certainly did not miss your point.

I am saying that you can speculate, predict, prognosticate and opine all day long that “Most employers will now drop their private coverage, thereby exponentially increasing the taxes on their employees, and driving them to uncertain and unfamiliar coverage to boot.”

But you cannot, under any definition of logic or intelligence, make that opinion, your opinion, a fact and then stand on that fact because no one has refuted it.

It is impossible to refute rank speculation and opinion.

Jeez. Are you really that vacuous?