A Hollow Victory for ObamaCare

Jul 2, 2012

This morning the Supreme Court upheld the Affordable Care Act (ACA).  But I believe it will ultimately prove to be a hollow and short-lived victory for the health care law.  

I believe it will prove hollow because the Supreme Court was able to find the individual mandate constitutional only through a series of extraordinary logical gymnastics that led the Court to conclude that the mandate is actually a tax.  But, of course, members of Congress did not vote to pass the ACA as a tax.  Nor did the American people understand it to be a tax.  Indeed, President Obama himself flatly stated that the individual mandate “is absolutely not a tax increase”—that “nobody” considers it a tax.

As Justice Kennedy noted in his dissent, “[i]mposing a tax through judicial legislation inverts the constitutional scheme, and places the power to tax in the branch of government least accountable to the citizenry.”  There is simply no way that the ACA would have become law had the American public and their representatives understood it as a tax.

As a result, I believe the practical effect of today’s Supreme Court decision upholding the mandate will be short-lived.  As numerous public opinion polls confirm, the majority of citizens already oppose the individual mandate.  As more Americans come to understand the individual mandate as a middle-class tax hike, it will only become more unpopular.  According to the non-partisan Congressional Budget Office, at least 75 percent of the penalties or “taxes” imposed by the individual mandate will fall on hard-working Americans who make less than $250,000.  In making choices at the ballot box this November, I believe the American people simply will not stand for the ACA to remain the law of the land.

When we look back at today’s decision in the coming months and years, it may ultimately be regarded less as a victory for the Affordable Care Act and instead as an important recognition and validation of the freedoms protected by our constitutional structure.  The Court’s decision today upheld the individual mandate as a tax, but it also validated fundamental principles of limited government and federalism.   

A majority of the justices rightfully concluded that Congress had exceeded its regulatory authority under the Commerce Clause by attempting to impose the individual mandate as a government directive.  As Chief Justice Roberts’ opinion explained, “The power to regulate commerce presupposes the existence of commercial activity to be regulated. . . . Construing the Commerce Clause to permit Congress to regulate individuals precisely because they are doing nothing would open a new and potentially vast domain to congressional authority. . . . That is not the country the Framers of our Constitution envisioned.” 

In so holding, the majority opinion expressly embraced the limiting implications of the distinction between activity and inactivity, put forward by critics of the Act.  The Court noted that although its Commerce Clause jurisprudence throughout much of the last century had been notoriously expansive, even at its most expansive in cases like Wickard v. Filburn, it had always limited Congress to regulating preexisting activity.  The ACA, by contrast, impermissibly attempted to reach inactivity.  The Court refused to countenance such limitless congressional regulatory power. 

Today’s ruling also includes an important precedent upholding the right of the States not to be coerced into administering federal regulatory programs.  The Court held that the manner in which the ACA sought to expand Medicaid violates the Constitution and our nation’s system of federalism.  The federal government may not bully the States into expanding Medicaid coverage by threatening to take away all preexisting Medicaid funding.  As the federal government increasingly attempts to circumvent the Constitution by coercing States through funding threats, this aspect of the Court’s opinion may prove to have enormous significance.

For now, the Supreme Court’s decision to uphold the ACA’s individual mandate as a tax puts the call to action squarely back on the people’s elected leaders in Congress.  As the majority opinion reminded, the Court “possesses neither the expertise nor the prerogative to make policy judgments.  Those decisions are entrusted to our nation’s elected leaders, who can be thrown out of office if the people disagree with them.”

Without a single Republican vote, Congress enacted an intrusive and burdensome mandate on the American people—a mandate that is hugely unpopular and has the potential to do our country great harm.  The individual mandate violates basic American freedoms and personal liberty in a way no Congress had before attempted in the 225 year-history of our Republic.

With a new administration and new leadership in Congress, we can repeal the ACA and restore individual liberty to all Americans.

Click here to read article as originally published in the National Review

More Supreme Court Analysis -- Day Lee Briefing 7/02/2012

Jul 2, 2012

Today’s Agenda

Today, Senator Lee will be a guest on Fox News Channel’s America Live at 1:15 PM EDT (11:15 AM MDT).

 

From the Senator’s Desk

 

On Twitter

Around the Water Cooler

Utah about to claim a bit more congressional clout

The internal party warfare is over, the ballot is set and now Utahns have until November to decide who they want representing them in Congress.

 

US manufacturing shrinks for first time in 3 years

U.S. manufacturing shrank in June for the first time in nearly three years, a troubling sign as evidence builds that economic growth is slowing.

Senator Lee Reacts to Supreme Court Healthcare Decision -- Day Lee Briefing 6/29/2012

Jun 29, 2012

The Supreme Court’s decision to uphold the Affordable Care Act left Utah Republicans stunned and disappointed, but not demoralized, as they said the ruling will help galvanize conservative voters and eventually lead to the law’s demise.

Lee Statement on Affordable Care Act Ruling

Jun 28, 2012

Today’s Supreme Court decision is only a temporary and hollow victory for the Affordable Care Act.

Healthcare Bill Upheld -- Day Lee Briefing 6/28/2012

Jun 28, 2012

The Supreme Court on Thursday upheld virtually all of President Barack Obama’s historic health care overhaul, including the hotly debated core requirement that nearly every American have health insurance.

Lee Statement on Wild Fires in Utah

Jun 27, 2012

Our thoughts are with those Utahns who have experienced the devastating destruction and loss caused by the wild fires across the State.

The Historic Decision

Jun 27, 2012

In anticipation of the Supreme Court's decision on this historic case, Senator Lee provides his analysis of each of these issues to help Americans better understand the impact that this decision will have on the healthcare system, the limits of Congress' power, the boundaries between state and federal power, and the individual liberties of all Americans.

The Utah Prairie Dog Menace -- Day Lee Briefing 6/26/2012

Jun 26, 2012

Today’s Agenda

Today, Senator Lee will meet with representatives of Comcast, the Pancreatic Cancer Action Network, and Micron Technology.

 

From the Senator’s Desk


 

On Twitter

Around the Water Cooler

High court limits state action on immigration

A divided Supreme Court threw out major parts of Arizona's tough crackdown on illegal immigrants Monday in a ruling sure to reverberate through the November elections. The justices unanimously approved the law's most-discussed provision - requiring police to check the immigration status of those they stop for other reasons - but limited the consequences.

 

Issa letter hammers Obama on Operation ‘Fast and Furious’

The chairman of the House oversight committee investigating White House involvement in the botched “gun-walking” program that led to the 2010 death of U.S. Border Patrol agent accused President Obama of downplaying his involvement in the program or intentionally obstructing the Congress' inquiry. 

 

Looking Ahead

Tomorrow, Senator Lee will meet with representatives of Baxter Healthcare and Sidley Austin Summer Associates. He will also attend a Congressional Gold Medal ceremony honoring the Montford Point Marine Association, and be a guest on the Rusty Humphries Show.

Preparing for Supreme Court Decision -- Day Lee Brieifing 6/25/2012

Jun 25, 2012

The Supreme Court will issue its last opinions on Thursday, with its decision on President Barack Obama's health care overhaul expected to come down that day.

Weekly Wrap-up: No Higher Taxes -- Day Lee Briefing 6/22/12

Jun 22, 2012

This week, the number of voices calling for an extension of all of the Bush tax cuts grew, including the number of Democratic voices. Alice Rivlin, Budget Director for President Bill Clinton, announced her support for the extension of the cuts, along with retired Republican Senator Pete Domenici. Like many others, Rivlin and Domenici see the damage that would be done by higher taxes, especially in a time of economic stagnation. Both also stated their support for comprehensive reform of the complicated and burdensome federal tax code.

Here are some of the week’s articles about the economic pain that would come with higher taxes:

Senate Dems balk at ending Bush-era tax rates on wealthy without a deficit deal

A growing number of Senate Democrats are signaling they are not prepared to raise taxes on anyone in the weak economy unless Congress approves a grand bargain to reduce the deficit.
 

Study: Obama plan means higher taxes on business profits

President Barack Obama’s plan to raise tax rates for the top 2 percent of U.S. households would mean higher taxes on the people who report 53 percent of business income reported on individual returns, according to the Joint Committee on Taxation.
 

Study: Higher taxes will slow growth, create job losses

A new study released Friday shows that letting any of the Bush-era tax cuts expire will weigh heavily on economic growth and lead to millions of job losses, likely plunging the economy back into recession. 

 

And here are some of the week’s best tweets on taxes: