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Article posted Jun 28 2012, 9:26 AM Category: Politics/Corruption Source: Michael S. Rozeff Print

The Court Says a Penalty Is Not a Tax and Is a Tax

by Michael S. Rozeff, LRC Blog

Michael Eversden pointed this out to me, so I read that portion of the decision, and it's true: The Supreme Court says that the fine is not a tax for one purpose (getting the case to be considered despite the Anti-Injunction Act) and is a tax for another purpose (the Constitution). The relevant portion of a paragraph reads:

"The Affordable Care Act describes the payment as a 'penalty,' not a 'tax.' That label cannot control whether the payment is a tax for purposes of the Constitution, but it does determine the application of the Anti-Injunction Act. The Anti-Injunction Act therefore does not bar this suit."

Unbelievable!




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