Tuesday, July 9, 2019

Obamacare is still has a tax

This latest legal threat to Obamacare was filed by a group of red states in February 2018, months after Republican-led efforts to repeal the law collapsed in Congress. They argue that Congress' decision to scrap the individual mandate penalty in its 2017 tax cut rendered the law unconstitutional because the Supreme Court previously upheld the mandate as a valid exercise of taxing power. Congress lowered the penalty for not purchasing health coverage to $0, but the mandate remains on the books.
Taxes are applied to Obamacare insurance in the form of subsidies.  The mandate to buy Obamacare insurance is still a mandate to pay taxes. Removing the penalty was not complete removal of taxes required. The Obamacare mandate should stand. The likely order might be, taxes due to cover the expected subsidies remain in place. We are mandated to help other buy insurance, even though we do not have to have it ourselves.

However, given this is Texas, I doubt the judges can even understand the complexity here, and are likely to foul this up; and certainty the Roberts court too stupid to straighten out the mess.

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