Tax or Penalty: Who Cares!

Mike Razar
The deep thinkers who are running the Romney campaign are arguing what you should call the provision of a law that prescribes a stick to encourage people to buy health insurance: a tax or a penalty.  The Supreme Court seems to think it is an important distinction. Suppose the Constitution prevents Congress from mandating behavior X. Then, according to our Ivy League masters, it can't impose a penalty on those individuals or states who fail to engage in behavior X. But somehow the taxing authority of Congress extends to taxing individuals, but not states, who fail to engage in behavior X.  This may be interesting to the sophists who teach in our great law schools, but ordinary citizens should not be fooled.  No matter what you call the tax/penalty, nobody will pay a dime more or less. The distinction is valuable to those who view constitutional provisions as mere obstacles to be gotten around by tricky language games, but not to those who end up paying the fee. It is...(Read Full Post)

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