Note: This article originally appeared at the Dallas Morning News on July 1, 2012.
On Thursday, the U.S. Supreme Court upheld most of ObamaCare and its 20 tax hikes in excess of $500 billion.
The Court clarified what Congress can’t do under the heretofore expansive power of the Commerce Clause. It can’t compel people to do something, such as buy insurance, that they aren’t already doing – in essence, creating commerce just to regulate it. In this, the Court put a fence around a clause that, for the last 70 years, has been the tip of the spear for expanding federal power.
But the Court ruled that Congress’ taxing authority does extend to levying a tax on people who do not purchase a specific kind of health insurance, so long as the tax doesn’t rise to a punitive “penalty” level. Thus the Court considered the individual mandate a constitutionally allowable tax and not an unconstitutional infringement of liberty.
Congress’ taxing power thus becomes the new vehicle for proponents of the Entitlement State to drive their agenda.
While the most onerous health-care provisions don’t take effect until 2014, it has already raised $40 billion in taxes, with more in the pipeline.
Next year, a $123 billion tax on investment income goes into effect, substantially hiking taxes on capital gains and dividends; while the Medicare payroll tax goes up by $87 billion for people earning more than $200,000. $53 billion in other taxes kick in as well, including a severe restriction on the use of Flexible Spending Accounts to pay for the care of special needs children.
In 2014, people can wait until they get sick before they buy insurance, and insurance companies will be forced to cover them; while companies with more than 50 workers will have to pay a penalty of at least $2,000 per employee if they don’t provide a certain level of health benefits.
The individual mandate tax also starts then, meaning that taxpayers will have to pay higher taxes if they aren’t covered by government-approved health insurance. The mandate taxes total about $65 billion over 10 years. Health insurers also get hit with $60 billion in taxes.
Lastly, in 2018, a $32 billion tax is levied on health insurance plans valued at more than $10,200 for a single person and $27,500 for a family.
On top of all this, while the Court removed the threat of states losing their current Medicaid funds if they don’t consent to how Congress retroactively changes the program rules, other provisions affirmed by the Court will impose an additional $10 billion burden on Texas taxpayers during the next two years.
The Court’s majority opinion clearly returned this contentious issue to the political arena: “The Framers created a Federal Government of limited powers, and assigned to this Court the duty of enforcing those limits. …the Court does not express any opinion on the wisdom of the Affordable Care Act. Under the Constitution, that judgment is re¬served to the people.”
The Court has now clarified that ObamaCare is a massive tax increase on the American people. Americans also know that the onus is squarely on the U.S. Congress – do they still stand behind this deceptively marketed tax increase on the middle class, or will they repeal this unpopular law in its entirety and start over with a new patient-centered approach to health care that emphasizes the doctor-patient relationship?
Among other things, this approach would include individual ownership of insurance policies – giving individuals the tax incentive that currently goes to employers. It would promote Health Savings Accounts, which empower individuals with their health care decisions and are proven to reduce costs. And, it would allow consumers to purchase insurance across state lines, letting them choose a plan that fits their specific needs.
It is, after all, the people’s actions in 2006 and 2008 that led to ObamaCare’s passage. And it was the people’s actions in 2010 and pending actions in 2012 that may prove this law’s undoing. Elections have consequences.
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