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URL:  http://boards.fool.com/we-will-have-to-pay-a-tax-if-we-dont-purchase-30289169.aspx

Subject:  Re: FairTax Date:  9/28/2012  3:22 PM
Author:  TMFPMarti Number:  116707 of 121182

We will have to pay a tax if we don't purchase health care.

Oh, but it isn't a tax, its a penalty (or some other fuzzy psuedo legal concept.)


I think you have it backwards. IIRC Congress didn't want to call it a tax, so they called it a penalty, which they probably didn't have the authority to impose. The Chief Justice saved it by calling it a tax, which they had authority to impose. And if the Supremes say it's a tax, it's a tax until they say otherwise.

I was amused by all the ya-ya over Romney's comment that corporations are people. While he was speaking about a broader construct, I was reflecting on the Internal Revenue Code's definition of "person." It includes corporations (IRC 7701(a)(1)). When the Code is talking about what normal people call people it calls them "individuals."

Phil
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