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2018-06-11 07:01 by Karl Denninger
in Health Reform , 287 references Ignore this thread
Welcome Destruction of The Treasury
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Well well Justice Roberts, I am writing your obituary right here and now, and should you precede me I'll publish it too, even if it costs me a lot of money to do it.

"Justice Roberts was single-handedly responsible for the destruction of the American Government via its Treasury via his idiotic and legally-infirm contortions in ruling the Affordable Care Act was in fact a tax, rather than a constitutionally impermissible command."

As I wrote at the time Roberts destroyed what little was left of the Supreme Court's legitimacy, putting the final nail into a coffin built since Wickard .v. Filburn.  He justified this in his opinion through what is really called by any means possible I shall torture the law to save it, in that he cited a claim that the Courts are required that any fair means of interpretation exists that leaves a law intact the courts are required to find it.

Of course there was no such "fair means" which he also set forth in his own opinion, stating clearly that the statute reads as a command to buy insurance ("enter into a regulated activity") and that the Constitution prohibits that.

Indeed the Congressional record on the drafting and debate makes clear (if you bother to read it, which Roberts clearly did and then intentionally ignored it, which I also pointed out in a further article) that Congress knew they could not draft the PPACA as a tax because direct taxation on other than strict capitation is unconstitutional.

In other words the US Government can assess a $10 per person tax, per person, but they may not condition the amount of the tax or its imposition on anything other than being a person.  The 16th Amendment makes legal the imposition of taxes on income.  Indeed multiple other attempts to impose such a tax without a Constitutional Amendment had been previously struck as unconstitutional, so there's not only a legislative record but a judicial one as well.

Roberts didn't care.  I've often mused if someone has a video of him buggering a little boy and used it get him to write that "opinion."

But what Roberts didn't have, because he couldn't, is the ability to time travel.  And when Congress passed the TCJA reducing the penalty for not having coverage to zero starting January 1st of next year they destroyed the Constitutionality of both guaranteed issue and community rating, since both were by the Congressional record inextricably tied to the imposition of the penalty and thus are non-severable, as is specifically stated in the Congressional record.

Without the penalty there is no tax since the inherent property of a tax is that it raises revenue.  That's now gone and it was the sole pillar on which the Roberts court decision rested.

The problem is that the rest of the law isn't inseverable and the way law works is that except where severance is specifically declared inapplicable it applies unless the result would be nonsense.

That the result of non-severance will bankrupt you does not enter in the analysis.

Thus the brief referenced herein argues that both community rating and guaranteed issue are Constitutionally infirm and thus void come January 1st.  This is a winning argument, and if there is anything approaching a justice who can actually read it wins by declaratory judgment since the precedent to judge it by is in the original opinion and as a result there is no legal ground to cover in presentation of a case or argument before the court!

But once you do that both Treasury and private industry are irrevocably and instantly ****ed.

Without community rating and guaranteed issue anyone with a pre-existing condition who becomes unemployed becomes permanently unemployable as they are uninsurable without destroying the business they go to work for.  Further, they can't engage in entrepreneurial activity either because there is no possible way for them to buy health insurance.  And finally, since the cost of that care has more than doubled since this problem was allegedly "addressed" by Obamacare they have no other option available.

I have often written about the utter necessity of getting rid of the medical monopolies as a political imperative, and for individuals to do everything in their power to get off the medical teat, which for most people means you damn well better not not be overweight or obese, you better have normal blood sugar which means no damned carbs to any material extent in your diet and it certainly means that intentional high-risk behavior like butt****ing, IV drug use or drinking to excess is an instant economic death sentence.

Of course what has occurred in the decade since Obama came to office and Pelosi and her pals rammed through their "vision" is that all of that has gone downhill in statistical terms for America.  There are more obese and abnormal-insulin and blood-sugar level people in this country than ever before, including a shocking number of teens for whom such was unheard of as recently as 30 years ago.  There has been an explosion of IV drug use including heroin and fentanyl.  And we have removed not just legal strictures but have mandated "tolerance and acceptance" under the law for extraordinarily-high risk social behaviors and in no small part covered that up with expensive, lifetime drug regimes that are utterly dependent on public financing to remain "affordable" for the vast majority of people.

The social issues are real but the cost issues exist only because neither Congress nor any State or Federal executive will take their justice departments and prosecute, throwing in jail, the medical monopolists.  Instead they kowtow to their lobbying, whining and claims of "necessity" to continue the trend of taking medical expense from 4% of GDP to nearly 20% today and beyond into the future.

Well, now the scheme is about to blow up in everyone's face.  As of January 1st those who are healthy do not need to participate and most will not.  I won't.  The "donut hole" where $25,000 - $50,000 in income has an effective tax rate of more than 80% everywhere (and close to 100% in high-tax states) is gone if you simply stick up the middle finger.

But without some means of forcing transfer payments from "someone" (the taxpayer across the entire population) to fork up $900 a month for someone like me, who needs zero routine and chronic medical care so that someone else can run up $5,000 a month prescription drug bills the latter's bill becomes unfundable.

Mr. Roberts will burn in Hell for this, as had he not tortured the Constitution in 2012 Congress would have been forced to deal with the medical monopolists and so would have Obama's administration, saving the US Government and taxpayer several trillion dollars.  You'd also be able to pay cash for virtually any medical situation, save an immediate crisis for which (if you chose to do so) reasonably-priced insurance would be available.  We're talking $100 a month or less here folks, because even the "really awful" stuff would cost one fifth of what it does now.

But all that money has now been stolen and it's gone, while the nuclear fiscal bomb left behind by Robert's outrageous twisting of reality on the back of Obama and Pelosi's intentional set of actions is now about to detonate in his, and everyone else's, face.

smiley

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Nadavegan
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I often wonder, and maybe someone here knows, what happens to people like Roberts along the way that compromise them. It seems to happen with regularity that when a seemingly decent person steps into high office like that, at some point they show themselves to be beholden to other interests. Is it that they were sheep-raping bastards to begin with, did they get baited into compromising positions, were friends and loved ones threatened, maybe all of the above?
Apotheoun
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May I inquire into the timing of this article?


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Preparing to go fishing.

I can't take the level of theft any longer.
Goforbroke
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Time to feed the chickens.
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And VT and NJ have joined MA in creating their own individual mandate.

https://acatimes.com/aca-backlash-two-st....

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Aztrader
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I remember When Robert's went along with the other lefties and called this a tax. I think I was cussing them out for weeks because I knew that they just passed legal extortion on those of us who buy our own insurance. I knew that the cost of insurance would sky rocket because of this mandate just like student tuition exploded when they gave unlimited loans to everyone.
The mandate that all preexisting conditions are covered sealed the deal. It gave the insurance companies every excuse in the book to jack up rates at will.
Now that the extortion tax is gone, nothing else will survive. Anyone that pays these insane premiums for no coverage is a fool (if they are healthy). The ones that will be affected are those that get the coverage for free and are extremely unhealthy to begin with. Their Medicaid leeches will drain the system in record time and we can thank the politics of the Supreme court for this demise.
The sooner it dies the better.....

Wa9jml
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One of my best friend's stepfather was a boyhood playmate of Huey Long in Louisiana. So, he had a lot of quotations from that Fine Democratic Elder Statesman. One I remember especially fondly, goes something like this: Everybody has done at least one thing in their life that they would rather die than have it made public. My task is to find out what that one thing is, and if necessary use it.

I suspect that all those raw FBI files that the Clintons obtained are the main reason that they are above the law. They sure played well with Newt Gingrich and Denny Hastert... I suspect that something along this line may well also explain why Justice Roberts clearly folded against the ObamaCare Juggernaut.
Karefree
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how did you get wind of this case? very interesting.... thanks for the share.

K

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Tickerguy
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Birdies chirp

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Winding it down.
Tdurden
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Lots of moving pieces in this particular mechanical ****-show. I'll hang back at the back of the room thinking about my constant drumbeat of "the mandate isn't going anywhere!" during the circus where the GOP pretended to be all about repealing obamacare. And technically, I was kind of, sort of right. Sure the "penalty" for the mandate was reduced to zero, so it has no teeth against us rabble. But it's still there, just waiting for a one-line rider on some must pass bill at some point in the future...with the treason of roberts' rubber stamp that it's ok for fedgov to come down on you full force with the IRS if you don't do business with their campaign contributors.

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Tickerguy
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Right up until they get the declaratory judgment.

Which, as a matter of law, they're entitled to at this point.

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Winding it down.
Jack_crabb
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Another thing that pisses me off about this whole ruse, is that there is now no true catastrophic health insurance. You know, like the kind that my healthy 19 and 22 year old kids should have.

Roberts is just another ********** wearing a magic black robe. **** him.

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Molon Labe
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Wa9jml
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This sort of thing is why I fought so hard to get a VA disability rating. The stuff the Air Force sprayed on to us, causes cancer, birth defects, and a host of other nasty diseases. Medicare, even if it exists for much longer, has a $2 million cap for benefits. That won't last long if the medical monopolies are not soon reined in. As bad as the VA is in most places, it is likely far better than no treatment at all for medical care that I wouldn't likely have needed if I did the prudent thing and escaped the draft by going to Canada. The VA also has vested bureaucratic interests in staying funded.
Analog
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I thought at the time Roberts was offered the choice between saving O'Care and Arkincide. Look who was behind it - Clintons, Cigna, Pharma Lobby, Obama(and his backers various Arabs and Unions).

Somebody pointed out at the time Roberts left an obvious mechanism to make the mandate unconstitutional .

Do i understand that repealing the tax renders the rest unconstitutional ?
Sounds too easy.
Quote:
The individual mandate thus still exists, but it will no longer be fairly possible to describe it as a tax because it will no longer generate any revenue.
As of 2019, therefore, the individual mandate will be unconstitutional under controlling Supreme Court precedent holding that [t]he Federal Government does not have the power to order people to buy health insurance.


I hope it's that simple. I need simple.
Go Texas !

a.

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Whitehat
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one component of this ****show that deserves mentioning is that certain states such as New York entered into expanded Medicaid which mitigates the hole of death for lower income workers. this makes being part of the medical system rather inexpensive for them. it essentially subsidizes an economic class which is above the poverty line by a lot and would be considered good earners outside of the expensive city. it seems to be a giveaway to groups such as the millennials who are tempted to not integrate into the legitimate working world and risk the loss of full medicaid and massive cost of insurance in the hole as they move up the earnings ladder. a lot of jobs do not offer coverage, some it sucks and others require an expensive employee contribution, why bother. this terrible program manages to remove every incentive for a person to enter the working world. who would want to work for nothing to show for it other than paying health insurance and taxes. cities would rather expand medicaid to mitigate this problem.

the obamascam mess was a perfect hook for a new generation. first they were allowed to stay on their parents insurance well into adulthood and then comes obamascam to pick them up. a lot also stayed in college for years as they were advocating for obamacare as college students can get low cost insurance. what people do not realize is that until one gets to 55 there is no asset hit for using Medicaid. it is free money. so they can do whatever volunteering, cash jobs, nothing, whatever until they land a position that makes it worth getting off the medicaid. anyone see a problem with this, especially if they figured out how to form a family in the system. it can be done and i see many mainstream examples. this new generation has a healthy cohort with some interesting societal expectations. this is a close parallel with the welfare class creation, like we need more.

this is inflation and it has done some interesting things to the job world. many occupations that were once mainstream jobs done by responsible adults are now considered loser jobs with no future or to be done by illegals. anyone see a problem with this? a much longer discussion.

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Tickerguy
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Yep -- and even without that Medicaid expansion it's a ****show as the "hole" remains.

Make $23,000 as a single person and you get FREE (to you) "insurance" (mostly worthless for many, but not for all.)

HOWEVER, the next $25,000 or so causes the phase out of ALL subsidies. Thus, your effective tax rate on that SECOND $25,000 in income is close to 90%!

Why would you perform all that work when you get to keep an effective ZERO of it? I won't and others won't either.

Now what?

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Winding it down.
Bodhi
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Quote:
Why would you perform all that work when you get to keep an effective ZERO of it? I won't and others won't either.


When it comes to government giveaways people have an unsurpassed ability to figure out where the sweet spot is and keep themselves there.
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