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The Healthcare Mandate Penalty. Is It a Tax or Not? It Depends on Who's Asking.

By
Real Estate Agent with Atlanta Communities Real Estate Brokerage GREC #208281

This kind of stuff is what drives me crazy about politics.

They say whatever they think they need to say to push something through. 

Back in September, President Obama had a spirited interview with George Stephanopoulos about whether the penalty that will be imposed on people who choose to not get health insurance is really a tax. Since the President made the promise about no new taxes, he had to adamantly refute the idea that the penalty in any way, shape or form could be construed as being a tax.

Here's the video.  He makes it quite clear that it would be crazy to consider this penalty as being a new tax. (I tried to find a video without any side comments but all the others were much longer. This one had just the part I wanted.)

 

Now fast forward ten months.  Twenty states are bringing lawsuits against this new healthcare law and are saying that it is unconstitutional.

Guess what the administrations legal team is argueing now?  They now say that it is constitutional because the penalty is nothing more than a tax and Congress has full constitutional power to lay and collect taxes.  Here's what has been reported in the New York Times:

The law describes the levy on the uninsured as a "penalty" rather than a tax. The Justice Department brushes aside the distinction, saying "the statutory label" does not matter. The constitutionality of a tax law depends on "its practical operation," not the precise form of words used to describe it, the department says, citing a long line of Supreme Court cases.

Moreover, the department says the penalty is a tax because it will raise substantial revenue: $4 billion a year by 2017, according to the Congressional Budget Office.

In addition, the department notes, the penalty is imposed and collected under the Internal Revenue Code, and people must report it on their tax returns "as an addition to income tax liability."

Because the penalty is a tax, the department says, no one can challenge it in court before paying it and seeking a refund.

Now isn't that special.  Where were these guys when this stuff was being debated? You can't have it both ways. You can't sell it to the people as nothing having to do with a tax and then come back and defend it as being constitutional because it's just a tax in sheep's clothing.   I guess you can but then you should be ready to be recognized for being a liar that can't be trusted in the future.  If he was mistaken back in September, then he should come out and say so.

What are the chances that the President will go back on TV with George Stephanopoulos and say that he was wrong about this not being a tax.  Let him then try to square this with his no new taxes promise.  That would be a change that I could believe in.  Until then, he is nothing more than the common politician who says whatever he needs to say.  What a shame.  I was hoping he would prove me wrong about my feelings that he is nothing better than George Bush and all the others.

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About the Author:  Tim Maitski has been a full time Realtor since 1999. He has sold several hundreds of homes in areas around metro Atlanta.  Tim started with RE/MAX Greater Atlanta and is now with Atlanta Communities Real Estate Brokerage.

 

Along with blogging on ActiveRain, he provides one of the best real estate websites in Atlanta at www.HomeAtlanta.com .

 

His proprietary  "Maitski Line Reports" chart out the absorption rates over the past 14 years in 37 different market areas.  Know when it's a good time to buy or a good time to sell.    

 

His online Property Tax Calculator allows you to compare property taxes in many counties and cities around the Atlanta area.  He provides the Atlanta MLS Power Search Tool that allows searches of homes using over 35 specific criteria.

 

Over the years, Tim has optimized his business so that he now can offer a huge 50% commission rebate to his buyers.  The more experience one gets, the easier the job becomes.

 

Tim also has a "Five Days to Sold" System that uses an intensive marketing blitz to create a showing frenzy that creates urgency and offers.

 

Tim is always looking to LinkIn with anyone who is interested in building their social network.

 

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Iran Watson
Georgia Elite Realty - Marietta, GA
Marietta Real Estate Agent - Photographer

Tim, There are so many things I could and want to say about this issue but sadly it would all be in vain.  The only thing politicians understand is getting voted out of office and that's exactly what needs to happen to about 3/4 of them... 

Jul 18, 2010 12:00 PM