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
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474 comments Add your comment
md
June 28th, 2012
1:41 pm
If folks think costs are going to go down after giving “everybody” a nice shiny new insurance card to run down to the doctor/ER every time little johnny has the sniffles, then one is only fooling oneself……do a little research on the MA costs…….emergency room visits actually INCREASED because folks had new cards and didn’t want to wait to go to the doctor……look it up.
This will not be responsible healthcare……it will be mega trips to the doctor on another’s dime……
Finn McCool (The System isn't Broken; It's Fixed)
June 28th, 2012
1:41 pm
“Either that, or employers will now lay-off people to get below 50, or not expand if it means going over that number.”
If a company is THAT worried about not being able to make payroll, if they have THAT much trouble staying in business, people evidently aren’t buying their products, then they should probably close their doors anyway. I don’t want to be the last employee in a dying company.
If sales are hopping then managers should be figuring out just how many employees they need to meet demand. If sales are hopping I would hope their last concern is the health care costs they pay for the people who are making them so wealthy and helping them put out a product people want! I wouldn’t want to work for someone who was soooooo into pinching every little penny cause they might not get to take that extra penny and put into Timmy’s trust fund.
No artificial flavors
June 28th, 2012
1:41 pm
What a turd of a decision! Im not sure what im more shocked by, the fact that merely existing as a human in America without any commerce activity can now be penalized..errr…taxed or that this asinine logic was penned by John Roberts, not Ginsburg. wow, just wow.
Jefferson
June 28th, 2012
1:42 pm
ig, that’s the kind of thinking that give the GOP their bad name. Man up instead of looking for loopholes. Obligations.
Tiberius - Banned from Bookman's and proud of it!
June 28th, 2012
1:43 pm
Darwin, Roe v. Wade expanded the powers of the Federal government in taking primacy over individual state laws.
Jefferson
June 28th, 2012
1:43 pm
md, just what are you talking about. You don’t get an insurance card unless you pay a premium. Free, are you nuts ?
Tiberius - Banned from Bookman's and proud of it!
June 28th, 2012
1:44 pm
Finn, how would YOU know anything about making payroll?
No artificial flavors
June 28th, 2012
1:45 pm
Finn, what about local governments and non profits that are not supposed to make profits. Thy are gona have to dump extra costs on their employees or dump them altogether. This affects a lot more than invetment banking instituion employees and high end retailers.
md
June 28th, 2012
1:46 pm
“md, just what are you talking about. You don’t get an insurance card unless you pay a premium. Free, are you nuts ?”
You must have missed the part about subsidies for those making as little as 88k a year……
Spending other peoples money……some folks are going to have a field day with little johnny……the poor kid will know everybody at the doctors office on a first name basis………..
Brosephus
June 28th, 2012
1:47 pm
Tiberius
I’m guessing you purposefully left off the next sentence: “Both “sides” put people there for the same reason, which is to uphold their ideological interpretations.” Do you object to that as well? If you thought I was saying that Conservatives put justices there to expand government, then you misread what I was posting.
Jefferson
As optimistic as I am, I seriously doubt we’ll see Congress act in that fashion. They have campaigns to finance, and the only way they can currently pull that off is that they do the bidding of those who give them the big money they need. Americans come in a far second on the hierarchy chart.
Hillbilly D
Yeah, we’ve been almost one and the same. I’m not completely sold on a single payer system, but if that’s the only way to control the middleman, then I’ll have to live with it. Regarding Bruno, he stormed off Bookman’s earlier, so it may be a while before he shows up on any AJC blog.
Scott Fresno
June 28th, 2012
1:47 pm
As a taxpayer and a person with insurance, I have been subsidizing the health care of these free loaders for years. Now they will have to pay their own way – either by buying insurance or paying a tax. Good. The able-bodied free-loading cost-causers should pay their own way.
stands for decibels
June 28th, 2012
1:48 pm
Me, I’m for single payer but I don’t expect to ever live to see that. Those who thing this will lead to single payer are kidding themselves, in my opinion.
I disagree with the first part–I do think we’ll likely see a “Medicare for all” solution while you’re still around (and still confounding those who believe in sticking people tidy pigeonholes, one hopes!)
However, I do agree that it’s foolish to assume this ruling, or the PPACA itself, brings us any closer to that day.
fair and balanced-
June 28th, 2012
1:48 pm
John Roberts on Monday and again today stood up for Justice and showed that the gang of five are not all a bunch of right wing political hacks. The Court by uphholding Obamacare basically overturned or remedied the injustice of the unfunded mandate passed by Reagan and the Congress which was 100% socialized medicine- EMTALA and applied conservative principles of individual responsibility .
Wait till the rebate checks on excess profits start going out from the insurers which could be over a billion dollars.What will the right wing mouthpieces say then?They want a president who encourages increases in premiums to feed the corporate echelon big bonuses?
We will see if the sheep finally wake up and realize John Roberts was writing as a true conservative in upholding the law.What will the right wing mouthpieces say then.
Can you imagine if the state passed a law that everyone has to get water supplied by the city regardless of ability to pay.? Would it be socialism if Governor Obama passed a law penalizing anyone who does not pay their water bill or get a low income subsidy? Oh I forgot there is that idiot/lobbyist who the right wing hacks worship who gave an edict of no new taxes even if they are a penalty to deter moochers who get free health care at the emergency room.
Jack in Ga
June 28th, 2012
1:49 pm
Ok. Well now we know that if you’re unemployed and are barely making ends meet or maybe just a few weeks away from losing your house or car that the government now is going to be able to impose a tax on you. The IRS is going to be coming for you to make sure you pay this largest tax increase in the history of the world!! I hope all you libs are celebrating right up to the point where the IRS takes your refund. Also one thing is clear now.. Obama lied from the very beginning, THIS IS A TAX..
md
June 28th, 2012
1:50 pm
“Now they will have to pay their own way – either by buying insurance or paying a tax. Good. The able-bodied free-loading cost-causers should pay their own way.”
No, they won’t……..the “wont’s” will still be living off your dime…….this is an entitlement program disguised as a healthcare program………
Jefferson
June 28th, 2012
1:50 pm
If doctors and health care workers are to be paid tidy salaries, the profits from the insurance companies are the only thing to look at. The costs are too high to not spread them out. Life is a struggle.
iggy
June 28th, 2012
1:53 pm
Jefferson
June 28th, 2012
1:42 pm
Business are in business to stay in business. They have shareholders to which they are accountable. Paying for the “will nots” is not their concern nor should it be.
Im saddened by this foolish decision by the SCrotumOTUS, however, Im quite sure those big bad insurance companies and other responsible business’ have their attorneys and statisticians working the problem as we speak.
Hopefully they will find a course, take it and render ObamaCare a moot point.
One thing you can bet on is more layoffs are in the offaling.
ralph
June 28th, 2012
1:53 pm
Kyle, why the big deal about the president lying? Bush lied about Iraq having WMD’s, which he used to get us in war that was not needed. At leas Obama’s lie didn’t result in anyone dying.
md
June 28th, 2012
1:54 pm
“The costs are too high to not spread them out. Life is a struggle.”
And the next logical step is to dictate how folks live in order to maintain those costs for the “good of all”……….the monster tax on cigarettes and tanning beds was a warning shot.
Tiberius - Banned from Bookman's and proud of it!
June 28th, 2012
1:55 pm
Brosephus, I have no problem with any side wishing to keep the role of the Federal government Constitutionally small.
I can usually rely on the conservative members of the SCOTUS to provide that. I can never rely on the liberal members to simply leave things alone in that regard.
Finn McCool (The System isn't Broken; It's Fixed)
June 28th, 2012
1:56 pm
Buzzfeed reports that dozens of patriotic Americans are vowing to flee to Canada – with it’s tax-payer funded universal health-care system because “the United States is entirely too socialist.” At the time of this writing, there are no reports yet of Canadian authorities moving to shut down their Southern border.
alternet.org
Tommy Maddox
June 28th, 2012
1:57 pm
Love Me Some Reagan @ 10:56: “Those right wing talk shows, blogs, website sure duped you people”.
Nope – we were duped by the President, Pelosi, and Reid when they said that the Act was not a tax.
Word to all – it is a tax.
Finn McCool (The System isn't Broken; It's Fixed)
June 28th, 2012
1:58 pm
md says “keep yer government hands off my tanning bed!”
Mary Elizabeth
June 28th, 2012
1:59 pm
About the possibility of a single payer healthcare policy ultimately, I never thought that I would see the end of apartheid in South Africa in my lifetime. But it happened.
History unfolds as consciousness unfolds and the rate of that unfolding is indeterminable. Those who think America’s Founders Fathers would not have approved of today’s Supreme Court decision regarding the Affordable Healthcare Act are not giving our founders enough credit for the depth and complexity of their thinking. Also, the founders did not speak as one voice, but of differing voices who all believed in the one ideal of liberty.
Thomas Jefferson had written, for instance, that the only constant should be the will of the people and that, if in the course of history, emerging Americans were not pleased with the U.S. Constitution, itself, which had served well those of his day and of the immediate days thereafter, then the U.S. Constitution should be viewed as able to be discarded and formed again to serve better the interests and vision of those Americans who, in the evolution of time, were to follow his own generation. Those were the thoughts of a founder who saw history and consciousness as a process of depth and complexity which continuously unfolded over time, and not as a static force, forever.
ld
June 28th, 2012
2:01 pm
The Obamacare “tax” will NOT affect the wealthy which can and do buy insurance. The Obamacare tax is more tax on ONLY the employee/ consumer class, NOT the wealthy, which is exactly what the GOP has wanted all along.
Roberts should have his ring kissed by the GOP.
With his Citizens United weapon of ca$h as a $uper $tereo $urround $ound $ystem that drowns out the individual voices of “we, the people”, the GOP has a substantially increased ability to win the WhiteHouse and a majority in both houses of Congress — if not 2012 then 2016.
Ca$h for lobbying, campaign contributions, advertising magnified by PAC means another triple crown for the GOP is all but inevitable–WhiteHouse and both houses of Congress..
As soon as the GOP can strip out all the industry regs and restrictions and all the protections for the employee/consumer class = ambrosia for the people for whom they REALLY work,
and that is NOT the working class of Americans.
iggy
June 28th, 2012
2:02 pm
“U.S. Constitution should be viewed as able to be discarded and formed”
Sounds as if you are hoping The Grand Poobahs next move will be so suspend the U S Constitution so we all might become “Citizens of the World.”
Nice thinking Ms Behar!
ODD OWL
June 28th, 2012
2:02 pm
As Vice President Joe Biden said so eloquently; “General Motors is alive and thriving, Bin Laden is still dead and searching frantically for his 72 virgin Brides and ObamaCare is the mandated Law of the Land.” How do i know that ??? Because Chief Justice of the Supreme Court John Roberts said so, thats how…. lets give credit where credit is due… President Bush/Cheney did one thing right when they appointed Judge John Roberts, Cheif Justice… Romneycare + Obamacare = same thing… Mandate !!!
Brosephus
June 28th, 2012
2:02 pm
Tiberius
I’m glad you have that faith. I don’t have faith in either party resisting the temptation to grab more power and authority, nor do I have faith in the SCOTUS in stopping them unless their actions violate the Constitution.
JDW
June 28th, 2012
2:03 pm
From Bob Kerry…Now that the court spectacle is over its time for Republicans and Democrats to put partisan politics aside and get down to business to find true cost containment solutions before we bankrupt the country.
From Eric Cantor…The House will vote to repeal the health care law — again — on July 11.
Once again Dems offer to work for solutions and Republicans are the Party of No…soon they will be the Party of Irrelevant.
Hillbilly D
June 28th, 2012
2:03 pm
Business are in business to stay in business. They have shareholders to which they are accountable.
The first sentence I agree with, they second one, it depends. Most of the larger corporations and multi-nationals, have hand picked boards, usually in a mutual backscratching arrangements from company to company, and share-holders have little or no say.
ld
June 28th, 2012
2:03 pm
ODD OWL
…..but can’t see the brides for the flames?
jj
June 28th, 2012
2:03 pm
Fact: Our company insurance bill went up $800,000 in 2011 when the up to 26 year old was added. If you are fiscally responsible to your shareholders you will drop all insurance and give your employees a credit and let the govt take of it. And why anyone doesn’t think this won’t happen is beyond me.
I have worked in Canada and can tell you first hand that anyone with money and a serious condition is (was) coming to the US for care.
md
June 28th, 2012
2:04 pm
“md says “keep yer government hands off my tanning bed!””
Again…..merely pointing out the obvious for those that choose to open their eyes to see it…….
Didn’t we just have a big discussion about being able to buy “too big” sodas??
Now that our benevolent gov’t got themselves into the management of our lives, one shouldn’t be surprised as those type taxes are repeated in an effort to control the costs they are now betrothed to control…………
Don’t kid yourself to think otherwise……..all one has to do is ask themselves why just cigarettes??
Tiberius - Banned from Bookman's and proud of it!
June 28th, 2012
2:04 pm
I hope Chief Justice Roberts has some very good health care.
He’ll need it to get that brain aneurism looked at immediately.
iggy
June 28th, 2012
2:06 pm
“If you are fiscally responsible to your shareholders you will drop all insurance and give your employees a credit and let the govt take of it.”
And I hope thats exactly what happens.
Love me some Reagan
June 28th, 2012
2:06 pm
Tiberius
There is nothing to debate. You were one saying the law was not constitutional…….. Don’t be upset at others because you were wrong.
Graham
June 28th, 2012
2:07 pm
1) “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?”
I have the choice not to speed and not get fined. I don’t have the choice to not have health coverage and not get fined.
and
2) “People are required to have car insurance and can be fined if they are caught without it. Is that a tax?”
No. I have the choice not to own a car (public transportation, walk, bike, train, fly) and not pay insurance. I don’t have the choice to opt out of obama care just like I don’t have the choice to opt out of paying for national security and military.
BillS
June 28th, 2012
2:07 pm
What good news for most Americans. Perhaps the result will be better health care outcomes for a nation that ranks surprisingly low among industrialized nations in its health coverages. At lest let us all hope that will be the bottom line
ld
June 28th, 2012
2:09 pm
Hillbilly D (2:03pm)
You’ve identified a huge problem. If all publically traded companies were required to have stockholders/shareholders/owners actually specifically authorize on an annual basis the compensation packages for their executives and if there could be no ADVANCE obligations for “bonuses” in case those executives fail (in the view of the owners– could include more than money failures), then huge companies could and would likely pay management less and, hopefully, rank and file employees at least a living wage.
iggy
June 28th, 2012
2:10 pm
“At lest let us all hope that will be the bottom line”
Keep dreaming…and good luck with that porcupine salad.
iggy
June 28th, 2012
2:11 pm
“rank and file employees at least a living wage.”
Thanks Comrade Lenin.
brad
June 28th, 2012
2:11 pm
Hey dumb f*cks! Roberts called it a tax, NOT Obama. Eat it cons.
independent thinker
June 28th, 2012
2:12 pm
Kyle- if you read Roberts scholarly opinion you would see he concluded it was not a tax or the anti-injunction statute would bar judicial review until the penalty is paid. Glad to see you believe in socialized medicine as passed by your patron saint- Reagan.
Love me some Reagan
June 28th, 2012
2:12 pm
“Roe v. Wade expanded the powers of the Federal government in taking primacy over individual state laws.”
Well as far as “right” and “left” goes I would suggest you check which Justices voted which way and how they voted overall during their time on the SC.
Hint: It wasn’t just a left / right deal, but do keep up the drivel
ODD OWL
June 28th, 2012
2:12 pm
@ Id 2:03 post….. Lol
Dusty
June 28th, 2012
2:13 pm
So the major part of ObamaCare was passed by the Supreme Court.
We no longer need a Supreme Court. We no longer live in a democratic Republic. All decisions will be made in Washington for “the good of the people”.
Forget the fourth of July. Every day is Dependence Day from now on.
BillS
June 28th, 2012
2:13 pm
Iggy, your partisan replies add nothing. If you wish the law does not accomplish any good, then you actively work against attempts to help expand and increase health care coverage. If you don’t see expansion as a worthy goal for this country, then shame on you.
ld
June 28th, 2012
2:14 pm
We’ll likely never know many people would be better prepared for retirement if their retirement funds had received more “profit” while those failures of bankers less in salargy, undeserved bonuses and outrageous golden parachutes.
Obama followed Bush’s failure as leader in bailing out the banks without concessions and reform in advance of the bailouts.
We’ll also likely to never know many retirement funds will now be unable to buy the supplimental medical insurance promised the retirees because of this repeat failure of leadership.
Mary Elizabeth
June 28th, 2012
2:14 pm
iggy, 2:02 pm
“Sounds as if you are hoping The Grand Poobahs next move will be so suspend the U S Constitution so we all might become ‘Citizens of the World.’ ”
=============================================
I don’t think in cliches, or in one-dimensional caricatures, iggy.
iggy
June 28th, 2012
2:15 pm
Perhaps a good idea might be for companies to continue offering healthcare insurance to their exempt employees and allow the non-exempt employees to fend for themselves. That would leave the non-exempts, who are usually the “will nots,” high and dry and help the productive workers, who are the ones, carrying the load.
Participation on the company dime must be earned.