Tuesday, July 3, 2012

A Tax for not Doing Something

So.  The United States Supreme Court has ruled that the "mandate" - the requirement that everyone must have health insurance or pays a penalty for not doing so - is actually a tax.  A tax on everyone who does not have health insurance.  Therefore, on those who do not have health insurance provided for them in some way, such as by their employer, a tax imposed for not doing something, i.e., not buying health insurance.

Republicans would have us believe that this "tax for not doing something" is unprecendented.  (Many of them, by the way, would also have us believe that this "tax" is the largest tax increase ever in the United States, the world, and, even - I'm not kidding - the universe.  All those assertions are easily shown to be not true, by the way.  But, when have the Republicans let truth get in the way of a good sound bite?)

However, it turns out that even the assertion that "a 'tax for not doing something' is unprecendented" is just ... well ... wrong.

We have long had taxes imposed on us for not doing things.

I, for instance, am taxed for not having minor children.  I am taxed for not getting married.  I'm even taxed for not giving enough to my church.

Yes, each of those is, in fact, a tax benefit for those who do those things, not a direct tax on me.  If you have minor children, you get a tax deduction.  If you are married, you get a lower tax rate.  If you give enough to your church, you can take a tax deduction for part of your gift.

But, whenever someone avails him or herself of the tax benefit for doing something which I did not do, I, and everyone else who doesn't do those things, must pay more taxes to make up the difference.  The effect is the same:  a tax paid because you don't do something.

The truth is that taxes have always been used as a tool to encourage (or coerce, depending on your point of view) people to do things which the government wants them to do, whether that's having children, getting married, giving to charities, drilling for oil, producing mohair, or investing your money.

To suggest that this tax, which is designed to motivate people to buy health insurance so the rest of us don't have to pay for the uninsured's health care, is something unique or new or unprecedented is just more ... well ... nonsense.