Health care "tax" a problem for Obama - and Romney

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Updated 12:46 p.m. Eastern Time

(CBS News) Appearing on "CBS This Morning" Friday, House Majority Leader Eric Cantor correctly pointed out that the Supreme Court had determined that the individual mandate in the health care law was constitutional not under the Commerce Clause - as the Obama administration had argued - but because of Congress' right to levy taxes.

In the words of Chief Justice John Roberts, who wrote the decision upholding the mandate: "The Affordable Care Act's requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably be characterized as a tax."

Cantor pointed to that finding to attack Democrats. "You know what's interesting is throughout the process by this there are promises made by the president, Nancy Pelosi, and others, saying 'Oh no, we're not going to tax people,'" he said. The comment was echoed by Louisiana Gov. Bobby Jindal and Virginia Gov. Bob McDonnell, who both stressed on a conference call with reporters Friday that the law is a tax. Senate Republican Leader Mitch McConnell said simply, in response to the ruling: "The Supreme Court has spoken. This law is a tax."

That notion has quickly become the chief talking point for Republican opponents of the law, who have effectively lost their argument that it is unconstitutional. The National Republican Congressional Committee (NRCC) deemed the law "a big f***ing tax" Friday - a reference to comments by Vice President Biden upon the law's passage - and the conservative group Americans for Prosperity plans to spend $9 million branding the law one of the biggest tax increases ever. 

Cantor and other Republicans are correct that Mr. Obama denied the law was a tax. "Nobody considers that a tax increase," he told ABC News in 2009, comparing the law to "a fair way to make sure that if you hit my car, that I'm not covering all the costs." According to the Congressional budget Office, four million people are expected by 2016 to pay a penalty - a tax, if you will - of $695 per person for not securing health insurance coverage. (Democrats have been quick to point out that this is less than 2 percent of the overall population.)

Yet while the ruling that the mandate is a tax creates headaches for Mr. Obama, it also causes problems for his presumptive Republican opponent, Mitt Romney. That's because as Massachusetts governor, Romney passed a state health care law that included an individual mandate. If Republicans are going to accuse Mr. Obama of passing a massive tax increase via the mandate, they're going to have to accept that their presidential nominee did the same thing.

"[W]e established incentives for those who were uninsured to buy insurance," Romney wrote in a USA Today op-ed in 2009, as TPM reported, in describing the Massachusetts plan. "Using tax penalties, as we did, or tax credits, as others have proposed, encourages 'free riders' to take responsibility for themselves rather than pass their medical costs on to others."

This is part of the reason that while Romney said in response to the ruling that "Obamacare raises taxes on the American people by approximately $500 billion" - a claim disputed by Democrats - he did not zero in on the court's finding that the mandate amounts to a tax.

Rick Santorum said during the Republican primary campaign that one reason Romney should not be the Republican presidential nominee is that the former Massachusetts governor can't effectively argue against the health care law. In light of this week's developments, it's hard to imagine he's changed his mind.

The White House, meanwhile, is standing by its contention that the law is not a tax.

Spokesman Jay Carney told reporters on Air Force One Friday that "it's not a tax...it's a penalty." Carney argued that the mandate is not a tax because people have a choice.

If they buy health insurance coverage they don't have to pay it, he argued, while people don't have a choice on paying taxes.

Underlining the fact that the president and his presumptive opponent are linked on the issue, Carney also stressed that the penalty in the Affordable Care Act is "modeled very closely" after the penalty in the health care bill signed by Romney in Massachusetts.

With reporting by Mark Knoller.

[LEAVA12]

To Believe or Not to Believe: Obamacare Creates Deficit?

Obama's health care has been in effect for just one year and a half; many important parts such as a mandate to be enrolled (effective in 2014) have not yet been implemented. Therefore, we cannot yet effectively evaluate Obama's Health law; without this mandate, there are healthy millions of uninsured people and hence there is not a full pool for medical insurance funds. As soon as the mandate is effective -2014- the insurance costs will be lower.

Two more positive facts: On May 2, 2012, a nationwide bust of scams, 107 doctors, nurses, and social workers were charged with Medicare fraud which swindled 452 million US$ from the program. According to CBS today, July 2, 2012, Pharmaceutical giant GlaxoSmithKline will plead guilty and pay $3 billion in the largest settlement of health care fraud in U.S. history, the Justice Department announced Monday.", http://www.cbsnews.com/8301-504763_162-57464923-10391704/glaxosmithkline-agrees-to-$3-billion-settlement-with-justice-department-in-largest-sum-of-its-kind-over-health-care-fraud/

These two events illustrate a way for Obama to reduce costs of the program and maximize the medical benefits for Americans; other ways include improving preventive medicine and negotiating medical costs between the government and doctors, ....

There is no compelling evidence that Obamacare has created or will create severe deficit. The average deficit under the Obama administration is about $1.35 trillion. Think about the following fact concerning the deficit: about $1 trillion for war, about $600 billion for interest on the debt, and about $300 billion of Bush's tax cut for millionaires.

Actually, there is a good possibility that Obamacare is one of many other factors which will reduce the deficit over the next four years if he is reelected.

[Kev117]

It was hilarious to listen to Romney say he was repealing ACA and going to replace it WITH EVERY SINGLE FEATURE IT ALREADY HAS, except the way to fund it.

And it was heartbreaking to hear silence from our news media who is owned lock stock and barral by the 1% who back their bot Mittens.

[Kev117]

Wow! What nonsense. Do you really HAVE to lick Republican's wounds to keep a job in the news media now-a-days? I can understand why Republucans are afraid of the Tea Party (well, not really, afraid of billionaire backers of the Tea Party) but do they sign your paycheck too? TELL IT LIKE IT IS? Not a big tax hike.

http://www.politifact.com/truth-o-meter/statements/2012/jun/28/rush-limbaugh/health-care-law-not-largest-tax-increase-us-histor/

[LEAVA12]

One Ironic fact about Romney's Stance on Obamacare


When Romney was the Massachusetts Governor in the past his universal health care policy was almost the same as Obamacare, but today he hypocritically opposes Obamacare.
Romney should remember what he wrote in an article on USA Today "using tax penalties, as we did, or tax credits, as others have proposed, encourages 'free riders' to take responsibility for themselves rather than pass their medical costs on to others."

Moreover during his single term as governor, Mitt Romney raised taxes 5 percent in Massachusetts, the state already known as "Taxachusetts.", : Do The Right Thing, by Mike Huckabee, p. 14 , Nov 18, 2008.
He also claimed " We raised fees $240 million,...", 2008 Republican debate at Reagan Library in Simi Valley , Jan 30, 2008 .

Why didn't Mr. Romney remember his past record during this presidential campaign? Is it a "win-win strategy" for Romney? Perhaps he just says what people want to hear and opposes what people hate - taxation.

[want_solutions_only]

Shame on Sunday Morning for their 1-sided report on Obamacare. Yes, hospitals are having to rethink outside the box but change is not ever easy. The tax Repubs are spinning about is for the top 1% who do not want to buy insurance, ONLY THE TOP 1% WILL PAY THE TAX if they say no to health insurance. Guess what, the Repubs are the party of mostly wealthy or those who don't understand that. Dems have many rich too, but they are compassionate and do wonderful work for less fortunate. The repubs fought FDR before Soc. Security was passed & LBJ before Medicare was passed. Repubs have no alternative to the bipartisan bill which was actually put together by a committee of Dems and Repubs, and guess what -- thankfully it finally passed. Repubs have no other option except to slash healthcare, social security and medicare to balance the budget! Repubs, Get over it! We Americans need healthcare - other countries already have it. In other countries w/ H/C doctors are still considered the wealthiest & deservedly so. They (Bless them) produce miracles every day. Doctors took an oath -- but are just worried about paying off their college costs. Please everyone vote for Pres. Obama to stay in office so he can continue to make CHANGE - some change is harder than others. We all know that. CBS Sunday Morning - my previously favorite program...please provide both sides to an issue or move to Cable!!!

[LEAVA12]

Comment about Chief Justice John Roberts's Statement

Chief Justice John Roberts interpreted the reason for the mandate: " It's not a tax; It's Law, but not 'unlawful' to break it" when he upheld ObamCare 's Law. There is no contradiction in his statement if it is understood that his interpretation the mandate is constitutional regardless to his interpretation; the penalty is embedded in the mandate. Moreover the Obamacare did not dictate that the penalty is treated as a tax base on the " Anti-injunction Act".

Any law or any mandate must have rule to enforce The penalty of disobeying the rule or the law is a penalty in the context of Obamacare's Law.

Many politicians believe that Republicans will use Chief Justice Roberts's remark -"It's a tax" - as a rallying cry for an explosive presidential campaign.

The White House confirmed that it's not a tax, it's a penalty for about 1 percent of population.

[LEAVA12]

Comment about Chief Justice John Roberts's Statement

Chief Justice John Roberts interpreted the reason for the mandate: " It's not a tax; It's Law, but not 'unlawful' to break it" when he upheld ObamCare 's Law. There is no contradiction in his statement if It is understood that his interpretation the mandate is constitutional regardless to his interpretation; the penalty is embedded in the mandate. Moreover the Obamacare did not dictate that the penalty is treated as a tax base on the " Anti-injunction Act".

Any law or any mandate must have rule to enforce The penalty of disobeying the rule or the law is a penalty in the context of Obamacare's Law.

The White House confirmed that it's not a tax, it's a penalty.

[sjc_1]

It seems like lots of people will continue to guess what is in the ACA law rather than reading it. This appears to be some idiots version of approximation by rant, if you can guess and no one refutes it, then it must be true ....OMG.

[marychgo]

Good lord, people, what Chief Justice Roberts calls a "tax" is likely to affect, at most, 4 or 5 million Americans -- out of 125 million households and 310 million U.S citizens!

NO ONE who HAS insurance is affected. NO ONE who GETS insurance -- via Medicaid or subsidized insurance through the exchanges or non-subsidized insurance through the exchanges or an employer-sponsored plan -- is affected. NO ONE who makes too little to be required to file a 1040 is affected, and NO ONE who can't find insurance -- through an employer or the exchanges -- that costs 8% or less of his/her income is affected.

The ONLY people affected by Justice Roberts' new "tax" are those who earn enough to be able to pay for insurance but absolutely REFUSE to purchase it. And THEIR tax maxes out in 2016 at 2.5% of their income.

Do the Obama-haters on this thread who keep ranting about how "he promised he wouldn't raise taxes on those earning less than $200/$250K" really expect us to shed tears for a twenty-something single person who earns $60,000 a year, CHOOSES not to buy health insurance, and has to pay an $1,800 tax penalty? I'm sorry but, even with the smallest violin in the world, I'm not going to be playing any sad songs for that very fortunate person!

[sjc_1]

Something said in a campaign is not a promise, but according to the GOP it is. By that reasoning the GOP promised to create jobs the last two years and all they can come up with is more deficit bloating tax breaks for the rich.

[Nocults]

Did I miss the alternative proposals introduced by the anti American GOP economic terrorist pimps for Big Insurance over the past 3 years????

Why is it a bad thing for American children to have health care when every other industrialized nation has health care for their children?????????????????