It is day one in the almost unprecedented three days of Supreme Court oral arguments regarding the Affordable Care Act. The first thing on the Court’s agenda is whether or not they can even rule on the case yet. The Court decided to devote 90 minutes of oral arguments today to deal only with that one matter.
At the heart of the issue today is the Tax Anti-Injunction Act enacted in 1867. The act has traditionally been interrupted to mean that a person cannot challenge, and thus the Court can’t rule on the constitutionality of a tax until it has actually been imposed on someone who then files suit. If the Court decides the individual mandate penalty is actually a tax subject to that Act, then the Court arguably cannot decide the case until after 2014, the earliest some penalty/tax could apply.
The imposition of a new “tax” is usually unpopular, so Congressional Democrats always claimed the mandate was a “penalty” and not a “tax.” But this monetary “penalty” would be collected by the IRS in conjunction with individual income tax returns. This clearly sounds like a case of something walking like a duck and quacking like a duck. This is why justices in the lower courts have been divided on whether or not the Tax Anti-Injunction Act should apply. For example the Fourth Circuit ruled that the Anti-Injunction Act applied to attempts to challenge the individual mandate, so any suit now was premature. Other circuits disagreed.
Neither the Obama administration, those challenging the law, nor basically the entire media/political world want the Supreme Court to invoke Tax Anti-Injuction Act in this case — for various reasons, they prefer to see the substantive merits argued and decided, which is why the Court appointed separate counsel to argue the tax position — but there is good reason for the Court to duck for now. To begin with, from a common sense perspective the individual mandate penalty is in essence a tax. It should be treated like a tax and the Court should act accordingly. If Congress can pass taxes but have them legally not treated as taxes by simply declaring “these are not taxes,” that could have some long term ramifications.
More importantly the Supreme Court punting will give time for the political process and the other two branches to run their course. There is at least a some probability Republicans will win big this November. If they do, they have promised to repeal the law, rendering this whole case moot, though it’s doubtful the Court would openly speculate on that.
When possible, the Court should let the political process work itself out before stepping into the fray that need not be decided now. A Supreme Court that chooses to get directly involved, when it may not need to, is one that is really pushing the boundaries of its powers. One could even say it would be a sign of an “activist court” that Conservatives have been railing against up until this case.




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Deferring on the tax issue would mean they won’t rule on the mandate and penalty/tax for now; but I think they would likely still decide whether the expanded Medicaid provisions are Constitutional, unless they find that can be severed from the mandate/exhange provisions. That would be a stretch.
If they can’t be severed, do you think that would give the Court grounds to overturn the entire law as being unconstitutional?
Supreme Court signals health care case won’t be held up over technicality. So it appears they are ready to move forward and here it now.
Game on!
Where are you getting that info? Link?
The Court basically fast track this going before them It is a good sign they are not going to punt but if this was not a high profile issue they normally would have based purely on the merits.
http://www.foxnews.com/politics/2012/03/26/supreme-court-signals-health-care-case-wont-be-held-up-over-technicality/
Well, that’s pretty vague, but from a perhaps more trustworthy source, more specifics as to why people in court seem to think the court won’t punt, above.
I almost wish they would punt, too. Santorum’s already doubling down on the issue from his “small government” perspective.
Sure. Kick the issue down the road, let Obama claim victory for his “Affordable” health care act and use it as a stumping point for reelection. I’m all for it, he needs at least one “positive” to campaign on and he might as well pretend this is it.
Not entirely on point but…
I remember the Democrats vehemently denying the mandate is a “tax” when they were looking for public support in passing the ACA POS legislation. Once passed and once the mandate was challenged they changed their tune and argued they had the power to force everyone to buy insurance because it is a tax and Congress has the power to tax. Now they’d prefer it to not be a tax so that POTUS won’t delay ruling due to a “technicality.”
Well, Dems, what is it?
If it’s a tax, then the GOP can argue the Dems RAISED everyone’s taxes. If it isn’t a tax, then it seems a ruling in favor of the mandate is less likely and that Obama, in bailing out the death-by-spreadsheet/health-for-profit insurers, egregiously over-reached …
…and how many Democrats seeking (re)election are even running on Obamacare as a great piece of Democratic legislation anyway? Indeed, wasn’t it once called “Romneycare?”
Hmmm…
one thing’s for sure, if the mandate receives a favorable ruling from POTUS (as I suspect it will given the neo-liberal economics of most of the justices, including Breyer and Kagan and Sotomayor) it will have to include the votes of the the conservatives. Then all the Stepford Dems out there who continue to support the failed presidency of Barack Obama will be praising the wisdom of Roberts and Alito and Scalia…
meh…
I think it’s pretty simply. Taxes are applied to things to “do” and a “penalty” is applied to things you “didn’t” do. So I believe the Court will rule that not buying insurance is a penalty.
Btw, the Court has posted the audio and transcripts. Very prompt.
Sorry, but as long as I am forced to buy insurance from a private company – it is not a tax. PERIOD. Now if the government has to purchase my health insurance from a private company and collect taxes from me to do that – that would be a tax. I realize that is convoluted, but the moment I am required to pay a private entity monies by law, I’m going to rebel about taxes as well. At least with the government as the purchasing body I have a chance at real regulation as they would be the one being ripped off. As an individual with no right of refusal, I’m sort of screwed coming and going.