Originally posted by Seiko
reply to post by fraterormus
You seem fairly balanced in your responses, what do you think of the legality of it?
This differs in car insurance as you can choose not to drive, but this seems like a living tax?
Well, the issue of the legality or Constitutionality of the IRS itself, and our Federal Tax system is an entirely different ball-game. There are many
who believe that the Federal Income Tax is both illegal and unconstitutional, however that doesn't prevent the Courts from sentencing those who are
caught evading the Federal Income Tax to Federal Prison. So, I won't derail this thread with a discussion of that.
However, as to this Health Care Bill itself...and let me insert a disclaimer that I have always been for Universal Health Care even when I was a
card-carrying member of the Y.R.A. (the only sticky-widget in my mind was how it is to be implemented)...I don't believe that it falls within the
realm of being illegal or being unconstitutional any more so than any other Federal Income Tax provision.
As the penalty for being non-insured is a 2.5% additional Tax Liability on your Federal Income Tax, it is not a Universal Tax on Living. Those who are
already Exempt from Federal Income Tax will not have to pay this penalty. Those who are Unemployed, or are below the Federal minimum Annual Salary,
will not have to pay this penalty. Only those who must file a 1040 already, and who have a Net Adjusted Income that is Taxable are liable for the 2.5%
Penalty if they do not maintain Health Insurance. In other words, the Retired, Minors, the Poor, the Unemployed, et cetera neither are required to
have Health Care or taxed for not having it. Only the Working Class and the Rich are taxed if they don't have it. (
Which is the way to do it, as
any other way would be grossly unfair to those who can't afford it.)
The reason for it is the same as how Group-Rates for Health Care Insurance works now. In an "Open Market" the higher the demand, the lower the cost
is to the consumer (or at least that's how the theory goes). The larger an Employer is, they are able to negotiate proportionately lower Health Care
Insurance Rates. The premise of this Amended Draft is that the Government is pooling all of the U.S. Citizens into one super large Group to negotiate
an even lower Group-Rate, and subsidizing those who can't afford it with Tax dollars. Since this system depends on every person who has a Taxable
Income participating to ensure the lowest possible Group-Rate, basically it has to require that those who can afford it either pay it or are taxed for
it if they don't, while not penalizing those who can neither afford to pay it or be taxed for it.
It sucks that any Federal Program ultimately ends up taxing the Working Middle Class and the Rich (who don't have good enough Accountants or Tax
Consultants to reduce their Tax Liability to 0 through deductions) have to pay for these programs through increased Income Tax, but this really is no
different than any other Federal Program the Federal Government enacts. It was the same with the Bailouts, and it has been the same since the dawn of
Federal Income Tax. Alors, c'est la vie.
[edit on 6-11-2009 by fraterormus]