Tuesday, September 22, 2009


FACT CHECK: Coverage requirement enforced with tax
WASHINGTON – Memo to President Barack Obama: It's a tax. Obama insisted this weekend on national television that requiring people to carry health insurance — and fining them if they don't — isn't the same thing as a tax increase. But the language of Democratic bills to revamp the nation's health care system doesn't quibble. Both the House bill and the Senate Finance Committee proposal clearly state that the fines would be a tax.

And the reason the fines are in the legislation is to enforce the coverage requirement.

"If you put something in the Internal Revenue Code, and you tell the IRS to collect it, I think that's a tax," said Clint Stretch, head of the tax policy group for Deloitte, a major accounting firm. "If you don't pay, the person who's going to come and get it is going to be from the IRS."...

...It wouldn't be the first asterisk added to Obama's campaign pledge on taxes. Earlier this year, he signed a tobacco tax increase to pay for children's health insurance. Even that can be read as a violation of his expansive campaign promise.

"I can make a firm pledge," he said in Dover, N.H., on Sept. 12, 2008. "Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

He repeatedly promised "you will not see any of your taxes increase one single dime."