Affordable Care Act

THE TAX ATTIC with Jerry Coon

July 19, 2012 // 0 Comments

Affordable Care Act, Social Security In a 5-4 split decision, the Supreme Court ruled that the Patient Protection and Affordable Care Act was constitutional. The Court ruled that Congress has the power and authority to create and pass a law that taxes people for not complying with the law. In this case, if a person doesn’t sign up for health insurance, there will be a penalty in the form of a tax to be paid as part of the person’s tax return for failing to comply. Interesting concept: tax for noncompliance. That concept all by itself might keep Action Tax Service going well into the foreseeable future. Now that even the Supreme Court agrees that Congress can use the tax return to get us to do something, the possibilities are absolutely endless. Of course, if Congress gets too carried away with this tax for noncompliance, they will still have to answer to us, their ultimate bosses. For example, it might be hard to vote for an incumbent who votes to pass a law that would tax anyone who doesn’t take their one-a-day vitamin or who doesn’t walk 500 steps per day or who drives a car more than 100 miles a day unless 80 of those miles are driven in a hybrid. Like I said, the possibilities are endless. I was hoping to retire sometime in the next 20 or 30 years, but now, with this development, I’m not sure I will make it. Just think of all of those people who will need help on their tax returns to calculate those noncompliance taxes. Americans are an independent lot and a certain number of people will go right just because most everyone else is going left and especially so if someone at the head of the line is demanding that everyone go left. The defenders of the law, the administration, had hoped that the law would be upheld as a manner of regulating commerce under the Commerce Clause. The tax argument was more or less an add-on argument. I believe the theory is to throw as many things at the wall as possible and perhaps one of them will stick. It worked. The Supreme Court ruled against the Commerce Clause argument and said that Congress […]