SEPTEMBER 21, 2009 | by NATHAN BENEFIELD

When a Tax Isn't a Tax

TEXT SIZE A A A

In a post this morning, I criticized PA Senate Republicans for their loose definition of "broad-based taxes" with an emphasis on "broad based."  But perhaps they were simply using President Obama's definition of tax ... which basically exludes any and all taxes.

Cato's Michael Cannon makes fun of Obama's statement, concerning the individual mandate to buy insurance or face a tax penalty, "Nobody considers that a tax increase….You can’t just make up that language and decide that that’s called a tax increase".  Cannon points to Obama's own advisors who call that a tax increase.

Cannon could have used a few more citations.  For instance, I got the crazy idea that the mandate was a tax by reading the legislation before Congress.

The relevant section of HR 3200:

Sec. 401. Tax on individuals without acceptable health care coverage.

Relevant Section of Baucus legislation:

Excise Tax. The consequence for not maintaining insurance would be an excise tax.

But I guess if the President says it, it's not a tax.

Related : Health Care  Taxation 

Commonwealth Foundation Twitter Updates


Browse Commonwealth Foundation