Thursday, June 28, 2012

TaxCare

MDs work on taxes and CPAs work on healthcare.  It must be true.  Chief Justice Roberts says so.

The Chief Justice wrote, in the opinion that supported the ObamaCare legislation, that:

"That Clause [the commerce clause] authorizes Congress to regulate interstate commerce, not to order individuals to engage it. In this case, however, it is reasonable to construe what Congress has done as increasing taxes on those who have a certain amount of income, but choose to go without health insurance. Such legislation is within Congress's power to tax."

Never mind that no one is writing or voting for this legislation thought they were drafting a part of the tax code.  Apparently the intent of the drafters was of zero consequence to the Chief Justice.

Now, those with the income to choose can either pay a tax penalty or purchase a healthcare plan.  It’s an ‘either – or’ tax: either buy (or do) what we want or pay a penalty.  Well, I must admit that that is brilliant: we know that the government has used taxes to alter (or try to alter) behavior: raise taxes on cigarettes to try and force people to smoke less, for example.   There are those who object to such actions, but the Supreme Court has now signaled that that is legitimate legislation: Congress is free to pass legislation to use penalties (now called taxes) to force behavior on those who can’t afford the penalty.

Where does this lead?  Well, first, it means the government can force the citizenry to buy things the government feels we should be buying: “Buy a Chevy Volt or pay a tax.”  But, more to the point, it can, through ever-higher taxes, simply force certain behavior on “those who have a certain amount of income” by slowly ratcheting up the “tax” on non-compliance.  “Buy a Chevy Volt or pay a tax” eventually becomes “Buy a Chevy Volt or pay a $100,000 tax.”

Secondly, beginning in 2015 (one year into the full enactment of the law) the “tax” penalty will start to climb, forcing more and more businesses to buy the healthcare insurance.  What will follow?  The insurance costs will increase, as will healthcare costs, as more and more government mandated funds become available for the healthcare industry, with rapidly decreasing market forces to keep costs in check.  (Don’t think so?  Look what happened to medical costs since Medicare, or education costs since the creation of the Department of Education.)  True private healthcare will be a thing of the past by the mid 2020s, and healthcare costs will soar, as there will be no reason to hold costs in check.  (Eventually, this will cause a reflex response by the same government, resulting in the very close, very real rationing of healthcare by the same accountants and bureaucrats.)

Third, the government, in the form of the bureaucracies that make up the executive branch, is now free to use the “power to tax” to force virtually any form of behavior modification on anyone, all in the name of taxation.  Want those pesky citizens to do something?  Easy, “tax” them for non-compliance.  Solar panels on houses or pay a penalty, drink fewer sodas or pay a penalty, get your body mass index below a certain number of pay a penalty, have fewer than four children or pay a penalty.  Hey, come-on, it’s just a tax and that’s ok, Chief Justice Roberts said so.

Truly, the power to tax is the power to destroy.

I’m headed to my accountant for my back pain.


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