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Friday, June 29, 2012

Supreme Court Justice Roberts confuses taxes and penalties in regards to Obama Care.

(Edit Note: July 2nd, 12:25pm, 2012) Apparently, if one does not pay the healthcare premium, the IRS declares the amount of the premium as income, meaning it turns into a percentage tax. So, I WAS WRONG, but I was also right in that I thought the "tax should be in the 1/10% to 35% range", which it is.


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Apparently Justice Roberts believes that if someone does not want Obama Care, they must pay a "tax" equal to the annual premium cost of Obama Care on a yearly basis. 

A 100% tax is basically unheard of. 

As onerous as taxes can be, taxes generally fall within a wide ranging percentage window of 1/10% to 35%.

In essence a tax is a PORTION of the service, product or property access permission that it is attached to.
What Justice Roberts did was confuse taxes and penalties. 
Roberts should have ruled that anyone who did not want Obama Care could opt out and pay a penalty instead. The penalty would probably be anywhere from 10% to 25% of the annual premium for Obama Care.

While I would still consider this to be unfair, it still is much more reasonable than simply telling someone you have to pay the same amount if you don't use a service as you would if you do use the service.

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