Fate of Healthcare Reform Lies in Whether Judges See Fines as a Penalty or Tax

The fate of healthcare reform will lie in whether judges view fines for failure to obtain healthcare coverage as a penalty or a tax, according to report by The Hill.

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While the Constitution grants the government the right to impose taxes for the general welfare of the country, it does not grant the right to impose penalties.

Lawsuits questioning the constitutionality of the individual mandate have so far been determined by party line, with federal judges appointed by Republicans ruling in favor of lawsuits arguing the Constitution has been violated. Judges appointed by Democrats have thus far upheld the law, citing the Commerce Clause, which allows Congress to regulate commerce with other nations and among states.

However, once the Supreme Court takes up the case, its decision will be largely determined by whether or not the Justices view the fine as a penalty or tax. The law imposes a $95 fine in 2014, which grows to $695 or more (depending on income) in 2016, according to the report.

Read The Hill report on healthcare reform.

Read more coverage on healthcare reform:

Hospital Trade Groups File Court Brief Upholding Reform Law

Half of States Ask Judge to Stop Entire Reform Law

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