The “reformers” in the White House and the House of Representatives have made all too plain their vision of the federal government’s power to coerce individual Americans to make the “right” health-care choices. The highly partisan bill the House just passed includes severe penalties for individuals who do not purchase insurance approved by the federal government. By neatly tucking these penalties into the IRS code, the so-called reformers have brought them under the tax-enforcement power of the federal government.
The Congressional Budget Office stated on October 29 that the House bill would generate $167 billion in revenue from “penalty payments.” Individual Americans are expected to pay $33 billion of these penalties, with employers paying the rest. Former member of Congress and Heritage Foundation fellow Ernest Istook has concluded that for this revenue goal to be met, 8 to 14 million individual Americans will have to be fined over the next ten years, quite an incentive for federal bureaucrats.
Who will be included among those subject to civil and criminal
penalties if this provision becomes law? For starters, any family of four whose combined income in 2016 is above $102,100 ($88,200 in today’s dollars) and that chooses to pay all its medical expenses out of pocket rather than pay the $15,000 a year that the CBO says will be the lowest-priced insurance option for families. Also any healthy twentysomething in a city with high costs of living who chooses to take the risk of going uninsured. And by outlawing the popular high-deductible plans that are currently among the lowest-cost health-insurance solutions, the new law would only increase the number of Americans on the rolls of those who cannot afford insurance. The CBO itself estimates that at least 18 million Americans will still be uninsured in 2016.
The fact that the penalties for noncompliance are enforceable by criminal prosecution is a chilling abuse of the prosecutorial power, which Columbia law professor Herbert Wechsler pointed out 50 years ago is the greatest power that any government uses against its citizens. Using it to enforce one particular notion of appropriate insurance coverage is nothing less than a tyrannical assertion of raw government power over the private lives and economic rights of individual Americans.
How would the penalties work? As a starting point, taxpaying Americans who do not satisfy the law’s insurance requirement would be penalized on their federal income-tax returns. Their tax burden would be increased by the lesser of (a) the amount the government decides they should pay for government-mandated health coverage or (b) 2.5 percent of their adjusted income above a filing threshold. An otherwise law-abiding American who fails to pay this “tax penalty” could be criminally prosecuted and sentenced to a year in prison if the feds deem his refusal to be a misdemeanor.
Worse, if the feds decide the refusal is felonious, the culprit may spend five years in federal prison and be fined up to $250,000. You could end up in a cell in Leavenworth even if you have paid all your family’s medical bills yourself.
By transforming a refusal or failure to comply with a government mandate into a federal tax violation, the “progressives” are using the brute force of criminal law to engage in social engineering. This represents an oppressive, absolutist view of government power.