A Taxing Situation

A Taxing Situation was Originally Posted on February 21, 2012 by lavarock

I just read an interesting news item. It involves the Obama-sponsored health care law and the Supreme Court hearing on the issue.

We are certainly going to leave it up to the Supreme Court because of the 4 issues mentioend in the article. It is interesting to note that when the law was passed in March 2010, President Obama and other supporters avoided calling the penalty a “tax.” yet the “penalty” for not complying is to be collected by the Internal Revenue Service. That the “penalty” was written into the tax code, can only be assessed to “taxpayers” and the law says that a “taxpayer” is one who is subject to Internal Revenue taxes. You know, if it looks like a tax and sounds like a tax and acts like a tax…

The Obama administration initially wanted the act to take effect and have someone complain about the “tax” before it could be heard in court. Someone had to be hurt before they could complain. Lower courts said that was not appropriate. I guess they determined that if the act was deemed illegal, it would be harder to undue.

Still, there are as I said, 4 items that would need to be decided by the Court. I’ll leave the link t othe article for you to read. It is pretty self-explanatory. Note that Supreme Court cases are not cut and dry and this case may be drawn out as they decide various parts of the Act.

http://tinyurl.com/7woasvo