UPDATE: A federal judge
has ruled the Affordable Care Act (ACA or Obamacare) is unconstitutional
because Congress, in the Tax Cut and Jobs Act, eliminated the tax penalty under
the individual mandate for those who do not maintain health care insurance. The
case is likely to go the Supreme Court.
Explanation: Under the USA
constitution the federal government is supposed to be completely limited to
doing things and passing laws that fall under one of several specific things
and categories specifically listed in the constitution. It is supposed to be
a government of "enumerated powers", as opposed to a government of
general and unlimited powers. Among the enumerated powers of the federal
government are, in general, the exclusive right to handle mail, regulate
interstate commerce, and levy certain types of taxes.
Obamacare contains a provision which provides
everyone must buy health insurance. And not just any health insurance but
only the specific kind of health insurance designed by the government.
This part of Obamacare that requires everyone to buy health insurance is
referred to as the "individual mandate". Obamacare as
originally passed also contained a provision that penalized any person who didn't
obey the individual mandate by failing to buy the government mandated health insurance
policy. That penalty was to be collected by the IRS.
Obamacare was originally challenged in court as being
unconstitutional because the individual mandate didn't fit under any enumerated
power of the federal government. Specifically, it was argued that it
didn't fit under the federal government's power to regulate INTERSTATE
COMMERCE.
The Supreme Court agreed the individual mandate
was not a proper application of the government's power to regulate interstate
commerce, and would, if not saved by something else, be unconstitutional.
The Supreme Court found that something else in the enumerated power of the
federal government to levy taxes. The Supreme Court ruled the penalty for
failing to obey the law regarding the individual mandate was in reality a valid
tax under the government's taxing authority. The court reasoned that the
penalty was a valid tax, and the individual mandate was so tied to that tax
that it was constitutional as a part of the federal government's enumerated
power to levy certain kinds of taxes. (Note: I'm just summarizing
what happened in the Supreme Court. I'm not saying I think it was correct
or logical or not completely crazy and off the wall).
Since that decision in the Supreme Court however,
the Tax Cut And Jobs Act was passed under President Trump. Part of that
law repealed the Obamacare penalty/tax that the Supreme Court relied upon to
say the individual mandate was constitutional.
So after the Tax Cut And Jobs Act Obamacare
continues to have the individual mandate that requires by law that everyone
must buy government specified health insurance. BUT, the tax penalty for
not obeying the individual mandate no longer exists. Since that tax no
loner exists, it can no longer be argued that the individual mandate is
constitutional under the enumerated power to levy certain taxes.
Since the Tax Cut And Jobs Act the individual mandate must stand on its
own. The Supreme Court has previously ruled it can't stand under the
enumerated power to regulate interstate commerce. So unless the Supreme
Court invents a new word game/fiction to find another enumerated power to
support the individual mandate, the individual mandate is unconstitutional because
it does not fall under one of the federal government's enumerated powers in the
constitution.
Finally, the court in Fort
Worth ruled that the individual mandate was so important to and so integral to
all of Obamacare as a whole that it could not be separated from Obamacare as a
whole. That means if the individual mandate is unconstitutional and it
can't be severed from Obamacare as a whole, then all of Obamacare must be
thrown out as unconstitutional.
For help with your legal needs contact a business, tax, and health care law attorney at the offices of
AttorneyBritt.
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