March 26, 2012
Obama Lawyer Laughed at In Supreme Court
On the first day of health care reform arguments before the Supreme Court, two justices needled a top Obama lawyer for simultaneously calling the fine that will be paid under the law for not purchasing insurance a “penalty” and a “tax.”
The confusion arises because of the administration’s argument that the power to enforce the individual mandate is rooted in Congress’ taxing power — but that the mechanism itself is designed to be a penalty, not a revenue-generating policy.
The narrow but important distinction created a communication challenge for the lawyer representing the Obama administration.
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Justice Elena Kagan asked whether refusing to buy insurance would constitute breaking the law, to which Verrilli responded that if people “pay the tax, then they are in compliance with the law.” That caught the attention of Justice Stephen Breyer.
“Why do you keep saying tax?” Breyer interjected, to more laughs.
The justices, particularly the four Democratic-appointees, and Justice Antonin Scalia, appeared skeptical that the fine constitutes a tax.
The distinction is nuanced, but key to one of the administration’s arguments.
http://nation.foxnews.com/obamacare/2012/03/26/obama-lawyer-laughed-supreme-court
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