Good News on First Day of Obamacare Hearings

Monday, March 26th, 2012 and is filed under Blog, Obamacare, Taxes

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Fox News is reporting that the Supreme Court has signaled that they will go ahead with case and not throwout the lawsuit on technical grounds.  There was some concern that the Justices would skirt the entire issue by invoking tan arcane 1867 tax law that  prohibits taxpayers from bringing a lawsuit against a tax before it is collected.  In this case, the tax will not apply until 2014 and will not be collected until 2015.  However, the Justices are not falling for that argument:

But all parties in this case happen to agree, albeit for different reasons, that the law doesn’t preclude the justices from moving forward.

And the justices appeared to be on the same page, as the first day of hearings wrapped up Monday around noon.

The justices disputed the notion that the insurance penalty is tantamount to a tax and therefore subject to that 1867 law.

“This is not attached to a tax,” Justice Stephen Breyer said.

Justice Ruth Bader Ginsburg, who like Breyer is considered to side on the liberal end of the bench, also said the law “is not a revenue-raising measure.”

“If it’s successful, there’s no revenue to raise,” she said.

It’s a minor victory in the fight for repeal.  Tomorrow, we will delve into the meat and potatoes of the case.  For those who want to listen to the oral arguments, click on this link.