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Thursday, July 5, 2012

Supreme Court Decision will change your taxes



A surprising number of conservative commentators have come out 
cheering the Obama Care Decision  because it ruled that the Commerce clause in the Constitution – Congress's power to regulate commerce across the 50 states – doesn't empower our legislators to force us to buy things (in this case, health insurance).


Of course, Congress can require those who propose to engage in regulated activities to purchase things, as a price of doing business.  But ObamaCare forces us to buy insurance just because we woke up one day and were citizens of the United States (and earning a certain income and not covered by insurance our employers have to buy).


The real decision

SCOTUS has said Congress can do that.  Focusing on SCOTUS's repudiation of the Commerce clause justification is pursuing a gigantic red herring.  Who cares what the Commerce clause allows, if SCOTUS says Congress can make us buy stuff anyway?

The Commerce clause has been made irrelevant by this ruling.  Chief Justice Roberts found another way to justify Congress making us buy stuff.  No one will ever have to invoke the Commerce clause again to propose a law that makes us buy stuff.  Regardless of what stuff we have to buy today, any Congress in the future can make us buy other stuff.  All Congress has to do is impose a monetary penalty if we don't buy the mandated stuff, and SCOTUS will call it a "tax."

The victory for the Commerce clause is the Pyrrhic one here.  Another such victory, and we are lost.



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