Tag Archives: policy analysis

Obamacare: When Tyranny is Constitutional

File:Robertsoath3.jpgI couldn’t believe it when I saw it on SCOTUSblog at 10:08 a.m, ET. “The individual mandate survives as a tax.”

In those seven words, Amy Howe, the SCOTUSblog reporter who typed the entry, informed the world that Congress now has the “constitutionally” protected power to deny individuals their right to choose whether to participate in the health insurance market.

I was shocked. I was expecting the Court to take a middle-of-the road approach by striking down the individual mandate (and perhaps a few associated provisions) and leaving the rest of the bill intact. I was mentally prepared for much of the bill to remain in place–and ready to remind people that the job was far from finished.

Those seven words proved that no reminder was necessary.

How did we get here?

Let’s rewind a bit. The Senate passed the bill in the dead of night on Christmas Eve. Americans woke up on Christmas morning to the reality that the Affordable Care Act (ACA, a.k.a. “Obamacare”) was one step away from the president’s desk. Sure enough, several months later, the bill was passed by the House and signed by President Obama on March 21, 2010.

Shortly before the House passed the bill, then House Speaker Nancy Pelosi told Americans that “We have to pass the bill so you can find out what’s in it.”  In April, after Obamacare was signed into law, Rep. Phil Hare (D-Ill.) said that “I don’t worry about the Constitution on this, to be honest.”  When some people worried that the individual mandate was an unconstitutional tax on an individual’s right to deny participation in the health insurance market, President Obama and numerous Democrats went on the record saying that the individual mandate was not a tax. At the time, this was supposed to be a semantic legal issue: regardless of whether or not it was a tax, it represented a new power for the federal government to force people into the health insurance market by levying a coercive penalty/tax/fine.

Thankfully, many state governments launched into action to legally oppose Obamacare. They developed multiple angles of attack against the law. Along the way, they heard the federal government’s legal team argue that the individual mandate was, after all, a tax! The reason was because the federal government relied upon two constitutional justifications for the enforcement of the individual mandate, and they needed a back-up in case their first defense strategy failed:

  • Commerce Clause: Article I, Sec. 8 gives the Congress the power to regulate interstate commerce. The federal government argued that health insurance markets had such a substantial effect on interstate commerce that it was within the purview of Congress to regulate it (this was, in part, based on expansive commerce clause precedent set in previous cases such as Wickard v. Filburn)
  • The power to tax: Article I, Sec. 8 also gives the Congress the power to “lay and collect Taxes, Duties, Imposts and Excises.” Assuming that the individual mandate was indeed a tax, then Obamacare could be justified legally under this authority.

Thus, the “tax” argument was the backup plan in case the commerce clause argument failed.  While Obama and the Democrats argued that the individual mandate wasn’t a tax for political purposes prior to its passage, but solicitor general Verrilli argued that it was a tax for legal purposes after its passage.

Oh yeah, and freedom is slavery too.

Chief Justice Roberts: Redefining “Benedict Arnold”

As the solicitor general, Donald Verrilli, literally stumbled through his arguments in defense of the constitutionality of Obamacare, liberty-lovers across the nation began to see a glimmer of hope. When Michael Carvin and Paul Clement eloquently attacked the constitutionality of the health care law, and particularly destroyed the alleged constitutionality of the individual mandate, the floodgates of optimism were opened. A 5-4 conservative majority among the justices, fumbling and bumbling solicitor general, and powerful legal argumentation by Clement and Carvin represented the perfect recipe for at least destroying the constitutionality of the individual mandate–if not the entire law.

Fast-forward to 10:10 a.m. on Thursday, June 28, 2012.  The latest SCOTUSblog update from a reporter named Tom read as follows:

“So the mandate is constitutional. Chief Justice Roberts joins the left of the Court.”

Yep, you read that right.  After the bastardized and unconstitutional birth of Obamacare and its subsequent flaws, mysteries, and inconsistencies were revealed for the world to see, the alleged conservative chief justice of the Supreme Court ruled that it was somehow constitutional.

Perhaps this just signified that chief justice Roberts never really was a conservative and was really a soft-hearted moderate all along. Perhaps this just means that he was caving to political pressure on the part of the Obama administration. Perhaps it was just an evil genius ploy to motivate the Republican base into supporting Romney (one of the absolutely worst arguments I have heard from conservatives thus far to get Roberts off the hook).

Regardless of whatever motivated Roberts to decide in favor of Obamacare (and against the Constitution), the fact of the matter is that he did it. The cost of Obamacare is on his hands as much as it is on Obama’s, Pelosi’s, and Ried’s.  He had a chance to strike down the law (which he should have taken in light of all the relevant moral, legal, and economic considerations), but he did not.

That’s not even ultimately what’s most upsetting. The fact of the matter is that Chief Justice Roberts was appointed on the understanding that he would uphold the United States Constitution–a duty that included providing a check on unconstitutional growths of federal power. We knew that the four liberal justices (Ginsburg, Sotamayor, Kagan, and Breyer) were going to uphold the law…but we did not expect a traitor to the Constitution from a supposedly constitutional conservative member of the bench.

The simple fact of the matter is that Chief Justice Roberts betrayed the Constitution.  Nothing can justify that, even if the conspiracy theory running around about some grand political scheming on Roberts’ part is true (which I highly doubt).  But even if it is true, political scheming is the last thing that a justice of the court should be doing.

No matter what, Roberts is guilty of betraying the Constitution.

It’s a tax, but it’s not!

What was once supposed to be a semantic legal technicality that served to demonstrate the absurd contradictions of the federal government’s case for Obamacare became the cornerstone of Roberts’ decision in favor of Obamacare.

Secretary general Verrilli pushed hard to find legal basis for Obamacare in the commerce clause. Unsurprisingly, Justice Roberts dismissed the constitutionality of Obamacare under the commerce clause, rightfully pointing out that:

“The power to regulate commerce presupposes the existence of commercial activity to be regulated. If the power to ‘regulate’ something included the power to create it, many of the provisions in the Constitution would be superfluous.”

In other words, the government’s top argument for constitutional justification, the commerce clause, is null and void. Fireworks and champagne! Obamacare’s dead, right?

Wrong. Inexplicably, Roberts decided to convert the most ho-hum and perhaps laughable argument of the federal government into the bedrock for affirming the legal validity of Obamacare. That’s right, he decided to say that the individual mandate was justified under Congress’s power to tax. What’s even more absurd is that he decided to arbitrarily accept the federal government’s interpretation that the individual mandate was not really a mandate at all, nor was it a fine, nor was it a penalty. Rather, it was a tax on one’s decision not to buy insurance.

But I thought it wasn’t a tax, President Obama?

Here’s the kicker: either way, the answer should have been that the individual mandate (and thus, the law due to severability) is unconstitutional. Roger Pilon at the Cato Institute points out that, even if you were to accept the interpretation that the individual mandate represents a tax on an individual’s decision not to buy insurance, it’s still not a type of tax listed in the Constitution:

“Congress can ‘tax’ those who don’t buy government approved health insurance. Don’t ask what kind of a ‘tax’ that is! It’s not an income tax. Nor is it a duty, impost, or excise tax, the only kinds of taxes recognized under the Tax Clause of the Constitution, where Roberts purports to rest Congress’s power; and it certainly isn’t ‘uniform throughout the United States,’ as is required for those taxes. It’s sui generis, which is a polite way of saying it’s unconstitutional — if we take the Constitution seriously.” – Roger Pilon

Thus, if the individual mandate had been ruled as not a tax, (which its political defenders all still claim to be true), then it could have only derived its justification from the commerce clause–which Justice Roberts had already shown was invalid.

Let me put it this way: based upon pure legal reasoning and the fact that this was a 5-4 decision, libertarians and conservatives were inches away from their biggest legal victory in the Supreme Court in decades. Sure, this decision would not have overturned disastrous commerce clause precedent set during the New Deal era and afterwards, however, it would have put a check upon the federal government’s limits. It would have overturned the health care law en toto, since the four dissenting justices realized that they could not legally sever the individual mandate from the rest of the law.

Instead of taking this monumental step to reign in governmental power according to the Constitution’s limits, Chief Justice Roberts decided to improperly use the constitutional power to tax as a justification for granting Congress with plenary (i.e. unlimited) authority to force individuals into a market by introducing fines and legally calling them “taxes.”

That is why, as the sun begins to dawn tomorrow morning, we are staring into the future, facing monumental increases in healthcare prices, monopolistic trends in health insurance practices, and substantially decreased quality of healthcare.

All because a tax is not a tax. Except that it is.

As Michael Cannon put it, either “The Supreme Court just enacted a law that Congress never would have passed,” or “The Court just told Congress it is okay to lie to the people to avoid political accountability.”

Justice Kennedy: The Forgotten Hero

Finally, lost in all of the madness of Chief Justice Roberts’ logic, is the fact that Justice Kennedy wrote the dissenting opinion calling for a complete overturning of Obamacare in its totality.

Let me repeat that: Justice Kennedy, along with Thomas, Scalia, and Alito would have overturned Obamacare in its entirety if Chief Justice Roberts would have joined them.

For all of the flak that Justice Kennedy has received for being a moderate swing vote in recent years, I think he buys himself a major “get out of jail free” card with his performance in the health care ruling. The one guy that conservatives were doubting stepped up to the plate and hit a grand slam. Unfortunately, it was not enough–thanks to Chief Justice Roberts treasonous and unforgiveable decision to justify Obamacare with his fellow liberals on the bench.

Nevertheless, my hat is off to Justice Kennedy, Justice Scalia, Justice Alito, and Justice Thomas. I trust that both conservatives and libertarians will never forget their stand against the arbitrary tyranny of Roberts and his counterparts in this decision.

Liberty and Tyranny: What Next?

Obamacare is bad law. Today’s decision does not change that. Nobody can change the fact that congressional members have blatantly dismissed the Constitution as non-binding when referring to Obamacare. No one can deny that any members of Congress actually knew what was in the bill when they passed it. No one can refute the fact that the individual mandate was indeed not severable from the rest of the law and that everything should have been struck down. No one can refute the fact that the majority of Americans don’t want this law.

But yet, we still have it.

Today, the Supreme Court ruled that the federal government has the authority to throw you in jail if you don’t buy health insurance. Don’t believe me? Guess what happens if you don’t pay your taxes. And if the individual mandate is really a tax, then that means individuals will be required to pay it or face fines and jail time. Granting Congress this level of power essentially grants them the power to force us (through taxation) to do whatever Congress wants us to do.

Politically, it’s tyranny.

Constitutionally, it’s unconstitutional.

Economically, it’s the epitome of perverse incentives.

Ethically, it’s evil.

The fight has only just begun. States now will have the option to refuse to set up the mandated health exchanges required by the law, a strategy long endorsed by Michael Cannon at the Cato Institute in case the law were to be upheld. It remains to be seen which states, if any will pursue this strategy, but this has to be the line of defense that citizens angry about the ruling have to fall back to.

On an individual level, the most important thing is to not let go of our love for liberty, for free markets, and for justice. Many of us are angry and rightfully so. However, time and again, when threatened by government encroachments, Americans get angry for a time and then they forget. It’s time to hold on to our desperation a little longer this time. The stakes are higher than they probably have ever been. This is not a call to riot in the streets or encourage lawlessness…we’ll leave that up to union workers in Wisconsin.

However, it is a call to more fervently embrace the principles of limited government, capitalism, liberty, and justice–and to continue spreading that message of liberty to others. We have the winning argument, but the time is running out to convince people.

We’ve been dealt a bad hand, but that doesn’t prevent us from making the most of it.

“…the germ of dissolution of our federal government is in the constitution of the federal judiciary; an irresponsible body (for impeachment is scarcely a scarecrow) working like gravity by night and by day, gaining a little today and little tomorrow, and advancing its noiseless step like a thief, over the field of jurisdiction, until all shall be usurped from the States, and the government of all be consolidated into one. To this I am opposed; because, when all government, domestic and foreign, in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided of one government or another, and will become as venal and oppressive as the government from which we separated.” – Thomas Jefferson, Letter to C. Hammond (1821)

The Original Intent of the Second Amendment

God is no tyrant. There is a constitutional right to keep and bear arms. There are very few topics as open-and-shut as the meaning of the Second Amendment.

Literally all evidence from the founding fathers shows that there was a consensus as to what the original intent and the original meaning of the Second Amendment was. The Second Amendment was written to keep the power in the hands of the people.

Its intent was to ensure that every person was able to take up arms and join other people to fight off tyrants, invaders, or unjustified insurrections. Its meaning was that the government couldn’t infringe on the right of the people to keep and bear arms — no gun bans or restrictions on the people at large.

Here’s the text of the Second Amendment:

“A well regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed.”

Before we look over what the implications of the Second Amendment are, let’s look at some quotations from the founding fathers themselves about gun control and the constitution’s protection of the right to keep and bear arms.

The States Request an Amendment on Owning Firearms

When the constitution was written, there was quite a bit of backlash from people who wanted the constitution to include certain strong limitations on the new government. They wanted explicit protections of the freedom of religion, freedom of speech, freedom of the press, freedom against unwarranted searches and seizures, and, of course — the right to keep and bear arms.

The request to protect the right to keep and bear arms was almost universal and requested in plain English. There’s no way to confuse the meanings of the requests. Let’s look at the texts of some of the actual requests and proposals.

New Hampshire’s convention requested the following addition to the Constitution:

“Congress shall never disarm any Citizen unless such as are or have been in Actual Rebellion.”

They weren’t alone. Antifederalists in Pennsylvania’s wanted an amendment to, requesting the following be agreed upon:

“That the people have a right to bear arms for the defence of themselves and their own state, or the United States, or for the purpose of killing game; and no law shall be passed for disarming the people or any of them, unless for crimes committed, or real danger of public injury from individuals…”

Three different states, New York, Rhode Island, and Virginia, each required similar proposals and their requests included these exact words: “That the people have a right to keep and bear arms”.

That the founding fathers wanted the right to keep and bear arms protected was obvious. They believed that the militia was the only real defense against liberty. They didn’t trust standing armies or their government — they wanted a country that really was just “the people” with the power, in the end.

Founding Father Quotes on Gun Control

The views of the founding fathers wasn’t minced either. They believed that the right to keep and bear arms was an important right — that the right of the people to be able to repel invasions and topple tyrants was a fundamental natural right.

An ancestor of mine, signer of the Declaration of Independence, and uncle to Robert E Lee, it was Richard Henry Lee who wrote the following in The Pennsylvania Gazette in 1788:

“To preserve liberty, it is essential that the whole body of the people always possess arms and be taught alike, especially when young, how to use them.”

The American hero Patrick Henry, the man who spoke fire for the cause of liberty, said in the constitutional debates:

“The great object is that every man be armed.”

Even Alexander Hamilton, the “liberal” of the day, wrote in The Federalist Papers at 184-188 that:

“The best we can help for concerning the people at large is that they be properly armed.”

The great philosopher statesman Thomas Jefferson wrote in a letter to William Smith in 1787:

“What country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance. Let them take arms.”

Their values were clear. They wanted an armed populace because they knew an armed populace was a free populace. This is why they passed the Second Amendment with the text of, “the right of the people to keep and bear arms shall not be infringed.”
But that’s not all. Let’s look at further proof — let’s look at what they specifically said about the Second Amendment, and not just the idea of gun ownership.

Founding Father Quotes on the Second Amendment

The founding fathers debated the constitution ferociously — including the Bill of Rights and the Second Amendment. The following is what they said specifically about the Second Amendment at the time it was written.

Statesman Zachariah Johnson, at the Virginia convention in 1788, explained in no uncertain terms what the Second Amendment protects:

“The people are not to be disarmed of their weapons. They are left in full possession of them.”

In an article on the Bill of Rights in 1789, the Philadelphia Federal Gazette published the following discussing the Second Amendment:

“… the people are confirmed by the next article in their right to keep and bear their private arms.”

Later that same year, the Philadelphia Independent Gazetteer published the following, quoting Sam Adams on the Second Amendment:

“And that the said Constitution be never construed to authorize Congress to infringe the just liberty of the Press, or the rights of Conscience; or to prevent the people of the United States, who are peaceable citizens, from keeping their own arms…”

James Madison, who is known as the “Father of the Constitution” wrote the following in the Federalist Papers, No. 46:

“[The Constitution preserves] the advantage of being armed which Americans possess over the people of almost every other nation…[where] the governments are afraid to trust the people with arms.”

Of course, some people believe that the Second Amendment only protects the “militia” when it comes to gun ownership. This just begs the question: who are the militia? The Second Amendment itself is clear: “the people” is the group who have their rights protected. The militia are the people, of course.

But don’t take my word for it. After all, we’re after the original intent and now the original meaning of the Second Amendment. Let’s see what the founders said about the “militia” and who it is comprised of.

Founding Father Quotes on the Definition of “Militia”

John Adams wrote in “A Defence of the Constitutions of the United States” that the right to keep and bear arms was an individual right, but that military action had to be sanctioned by the laws, of course — not just any “revolution” would be legal, of course. He explains explicitly:

To suppose arms in the hands of citizens, to be used at individual discretion, except in private self-defense, or by partial orders of towns, countries or districts of a state, is to demolish every constitution, and lay the laws prostrate, so that liberty can be enjoyed by no man; it is a dissolution of the government. The fundamental law of the militia is, that it be created, directed and commanded by the laws, and ever for the support of the laws.”

This is a limit on the militia — not a limit on gun ownership itself. In other words, you have the right to own firearms, but not to just shot anyone you want or start a coup because you’re restless. This is just common sense, and even the most radical pro-gun thinkers would agree with such a limit. Your right to shoot guns ends where the property of others begins — that’s just how it works.

But some try to stretch this “limit” into meaning that the government can outlaw guns. Besides the obvious point that this goes against “the right of the people to keep and bear arms” on a blatant level, it also is unfounded — because militia rights are peoples’ rights. That’s because the militia is, in fact, the people.

That’s why the political economist Tenche Coxe — someone who was originally a loyalist during the revolution — even proclaimed the following in The Pennsylvania Gazette in 1788, while the debate was raging:

“Who are the militia? Are they not ourselves? Is it feared, then, that we shall turn our arms each man against his own bosom. Congress have no power to disarm the militia. Their swords, and every other terrible implement of the soldier, are the birthright of an American…[T]he unlimited power of the sword is not in the hands of either the federal or state governments, but, where I trust in God it will ever remain, in the hands of the people.”

And then even more bluntly, George Mason, yet another founding statesman, defined the militia during the Virginia convention to ratify the constitution in 1788:

“I ask, sir, what is the militia? It is the whole people, except for a few public officials.”

The evidence is devastating. Any historical “expert” who believes the original intent and meaning of the constitution didn’t protect an individual right to keep and bear arms is likely lying — either subconsciously to himself or consciously to your face.

After all, the Second Amendment plainly states, “the right of the people to keep and bear arms shall not be infringed. To an honest man, the debate should be over.

Why Regulations Rarely Fix Anything

The following was written by Sam Paul, a student at New Saint Andrews College. If you wish to write something for this website, click here.

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Senator Mary Landrieu, D-Louisiana, announced proposed legislation that would prohibit airlines from charging passengers for their first check-in luggage. The purpose is to prevent airlines from charging “unfair fees”, while encouraging them to ease up on the carry-on items (Fox News, 11/21/11).

This is ludicrous. The legislation simply force airlines to raise prices on their tickets in order to compensate for the lost revenue, and is also yet one more intrusion of government into the private market. Taking it one step further, however, the proposed bill reflects an underlying assumption that America has developed about government since FDR’s “New Deal”. They assume that Government is a corrective device.

That people want governmental correction is quite evident, considering recent government initiatives. 2009 saw the Cash for Clunkers program, designed to correct our overdependence on gas-guzzling rigs (New York Times, 7/20/09). 2009 also witnessed a tobacco tax hike from 39 cents a pack to $1.01 per pack, the largest federal tobacco tax hike in history (USA Today, 4/3/2009). The Federal Government has increasingly tried to influence the patterns and habits of its citizens, rather than allowing them the freedom to decide for themselves.

Obviously, the assumption is skewed. “This view is false. A democratic government is merely a method of social organization, a process through which individuals collectively make choices and carry out activities.” (Gwartney, Common Sense Economics)

Lab Test: Governments Don’t Ensure Beneficial Economics

In fact, government initiatives that rely on majority vote rarely work out for the benefit of everyone. Let’s use a 5-man economy to demonstrate.

Plan A

Say that the cost of a project is $60, and it generates only $50 worth of benefit. Since the costs exceed the benefits, the project is clearly unproductive and should be rejected.

But, if the costs are equally allocated among the 5 voters, for $12 each, and are decided by majority vote, the project will be undertaken. 3 of the 5 voters would receive $15 in benefits, as opposed to the 2 remaining voters who would receive $3 and $2 in benefits. The costs imposed on the 2 voters would be substantially greater than their benefits, but since they are in the minority, they can’t do anything about it.

Plan B

In this alternative, the costs will be allocated according to the benefits received by each voter. Now, voters who receive a larger share of the benefits are required to pay a larger share of the cost. Now, the 3 voters will receive 30 percent of the benefits ($15 of the $50 total), but they will be required to pay 30 percent of the taxes to support the project. The 2 remaining voters would be required to pay only 6 and 4 percent of the cost, because this represents their share of the total benefits.

With that system in place, all five voters will vote “no” on the project because their share of the cost will exceed their benefits.

This illustrates an extremely important point: When voters pay in proportion to the benefits received, all voters will lose if the government action is unproductive, and all will gain if it is productive. (Gwartney, Common Sense Economics)

Consequences

With the illustration in mind, it’s obvious to see why these government initiatives have negative impacts overall.

Cash for Clunkers program only increased the demand and cost of other used cars, since a portion of the supply had been intentionally destroyed. Though it benefited the citizens who utilized the program and car dealerships, it had a negative impact on the remaining population who had to pay for the program itself through tax dollars and also for their more expensive used cars. (Miller, Sound Politics, 6/13/11)

The same impact would result from the airline legislation. Though certain passengers would save from not having to pay for their checked-in luggage, the cost for airline tickets would rise overall.

Government isn’t meant to be a corrective device. The sooner American voters realize this, the sooner we’ll be able to elect like-minded officials.

Copyright Capitalism Institute, 2011-present.