Silver Linings in SCOTUS Obamacare Ruling
[Editor’s note: This post should not be construed as an endorsement of Mitt Romney or of Republican candidates for U.S. Senate or U.S. House in 2012. The author is a political media strategist by trade.]
Regular readers know I am not a lawyer, and that I do not specialize in health policy. I also did not come to Washington through Capitol Hill and am therefore no expert in parliamentary procedure. Still, I wanted to share a few thoughts on the Supreme Court’s decision to uphold Obamacare — some original, some not — and they’re not all bad.
First, here’s the opinion itself (PDF).
Second, the greatest legal minds on the left have spent the last couple of years arguing that the individual mandate is constitutional under authority granted to Congress under the Commerce Clause and Necessary and Proper Clause. The Court summarily rejected this argument, and that is great for individual liberty. Congress does not, as Obamacare opponents have argued all along, have the power to force you to buy health insurance, broccoli, or anything else. It does not have power to regulate economic inactivity.
Third, the mandate was upheld because Chief Justice Roberts wrote that the penalty for not purchasing health insurance can reasonably be construed as a tax. Because the power to tax is an enumerated power of Congress as outlined in Article 1, Section 8 of the Constitution, this provision of the law was upheld.
An interesting political point — in September 2009, fearing political blowback from pushing so hard for the law, the president flatly rejected that Obamacare constituted a tax increase on Americans during a recession:
This should be television ad GOLD for Republicans for the rest of campaign season. If Mitt Romney can’t incorporate this into his economic messaging, he doesn’t deserve to be president.
Also expect the first bullet point of this December 2009 White House blog post to be scrubbed soon:

And an interesting substantive point — an undergrad political economy professor of mine notices that, for purposes of standing (the right to sue the government over the law), the Court held that the mandate provision was a regulatory penalty, but in finding authority to uphold it, construed the mandate to be a tax. As implementation proceeds, it’s not unreasonable to expect further litigation to clarify the precedent.
Fourth, Obama promised on the campaign trail that he wouldn’t raise taxes “one cent” on the middle class. The Court affirmed today what the rest of us have known all along: Barack Obama is a categorial liar.
Fifth, as a tax, I believe the mandate provision can be repealed through budget reconciliation. This is important, because reconciliation bills only require a simple majority in the Senate (51 votes), as opposed to a filibusterable 60-vote piece of legislation. I’d really like clarification on this point.
Sixth, Obamacare’s Medicaid expansion provisions were struck down by the Court. Roberts and company affirmed states’ rights to not participate in the expansion of Medicaid programs. My former Cato Institute colleague Michael Cannon has been arguing recently that states should flatly reject the creation of insurance exchanges, and it’s now more important than ever that they do so:
Political strategy for Republicans going forward from this decision is clear: work hard for Republican Senate candidates, turn out the base for down-ballot races, and hope that conservatives disenchanted with Romney wind up pulling the lever for him while they’re in the voting booth.
United Liberty








Dems said it wasn’t a tax and Repubs said it was.
After arguments, Repubs said it wasn’t a tax (probably fearing this outcome) and Dems suggested it was (after their commerce clause argument fell flat on its face).
Roberts and the SCOTUS said that it doesn’t matter what either party says (especially bc they change their positions for political leverage).
It happened to be the backup argument, after the Commerce Clause one, from the Obama Administration.
It was held up.
I see the libertarians all up in arms but precedent does show support Roberts’ conclusion.
The SCOTUS doesn’t evaluate whether any law, including this one, is a good one - only its Constitutionality.
If you’ve got a problem with it, then elect the people out of office.
Hence, I don’t sympathize with the distraught libertarians.
As to the pont of this article (sorry sort of bypassed it lol), I think it’s fair to say that this may not be a clear cut victory or loss for either Presidential candidate or party.
Romney would have to had to go into details (which we all know he doesn’t have) with his own “solution” had this law been repealed by the SCOTUS.
Now he can keep throwing his poop at Obamacare without presenting any alternative remedy.
Obama may now have a larger (or more reddened) bullseye on his back.
We’ll see. I can see how both Obama and Romney can play this to their advantage. As a sports fan, may this a small victory for entertainment.
I find the opposition to health insurance exchanges both odd and troubling. Exchanges are the single best free market answer to many of the current problems with health care. The Utah model has worked quite well, with the only issue being that few people purchase policies through exchanges because health insurance has yet to be decoupled from employment, which is another essential step in the reform process.
With exchanges, individuals will be able to deal directly with insurers, eliminating the costly, unnecessary layer of insurance brokers, and insurers will have to compete for policy holders while offering different policy options to suit different individuals. This model works fantastically well for car insurance, so why is there resistance to doing the same thing with health insurance? Give people more freedom, more choice, and the outcome will be positive. I see no reason for libertarians to oppose this concept.
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