STEPHANOPOULOS: That may be, but it's still a tax increase.
OBAMA: No. That -- that's not true, George. The -- for us to say that you've got to take a responsibility to get health insurance is absolutely not a tax increase.
What it's saying is, is that we're not going to have other people carrying your burdens for you any more than the fact that right now everybody in America, just about, has to get auto insurance. Nobody considers that a tax increase. People say to themselves, that is a fair way to make sure that, if you hit my car, that I'm not covering all the costs.
STEPHANOPOULOS: But it may be fair, it may be good public policy...
OBAMA: No, but -- but, George, you -- you can't just make up that language and decide that that's called a tax increase. Any -- if I -- if I say that right now your premiums are going to be going up by 5 percent or 8 percent or 10 percent next year, and you say, "Well, that's not a tax increase," but, on the other hand, if I say that I don't want to have to pay for you not carrying coverage, even after I give you tax credits that make it affordable, then...
STEPHANOPOULOS: I -- I don't think I'm making it up. Merriam- Webster's dictionary: Tax, "a charge, usually of money, imposed by authority on persons or property for public purposes."
OBAMA: George, the fact that you looked up Merriam's dictionary, the definition of tax increase, indicates to me that you're stretching a little bit right now. Otherwise, you wouldn't have gone to the dictionary to check on the definition. I mean, what...
STEPHANOPOULOS: Well, no, but...
OBAMA: ... if what you're saying is...
STEPHANOPOULOS: I wanted to check for myself. But your critics say it is a tax increase.
Jazz Shaw at The Moderate Voice points out it is right in the bill, no need to look at Merriam-Webster's dictionary. From page 29 of the Baucus Bill:(link above)
Excise Tax. The consequence for not maintaining insurance would be an excise tax. If a taxpayer‘s MAGI is between 100-300 percent of FPL, the excise tax for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or an individual claimed as a dependent) is $750 per year. However, the maximum penalty for the taxpayer unit is $1,500. If a taxpayer‘s MAGI is above 300 percent of FPL the penalty for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or as an individual claimed as a dependent) is $950 year. However, the maximum penalty amount a family above 300 percent of FPL would pay is $3,800.Why does any of this matter? First, Obama wants to deny the obvious; this is a tax on the middle class and this shows him not only reversing his campaign position on mandates but pretty clearly breaks the "not one dime," promise. Obama can never play it straight when it comes to the implications of his health care debacle. He resorts to his usual strategy of deflecting with a straw man attack on his critics:
OBAMA: My critics say everything is a tax increase. My critics say that I'm taking over every sector of the economy. You know that. Look, we can have a legitimate debate about whether or not we're going to have an individual mandate or not, but...We can't have a legitimate debate about mandates if the President of the United States can't even be straight with the American people about what the definition of a tax is. Mandates are the only way to offset the risks of guaranteed coverage for all regardless of pre-existing conditions. The President prefers to make this about personal responsibility, again avoiding any pretense of legitimate debate:
STEPHANOPOULOS: But you reject that it's a tax increase?
OBAMA: I absolutely reject that notion.
What it's saying is, is that we're not going to have other people carrying your burdens for you any more than the fact that right now everybody in America, just about, has to get auto insurance. Nobody considers that a tax increase. People say to themselves, that is a fair way to make sure that, if you hit my car, that I'm not covering all the costs.As Karl points out in The GreenRoom the President can't have a legitimate debate on mandates because it is unlikely he would even attract Democrats. When the President decides he wants to have a legitimate debate about health care maybe then he should take to the airwaves with yet another full court press. As Obama is scheduled to appear on Letterman tonight, there appears to be no reason to believe he will resist the bright lights of television appearances any time soon. Until he does, maybe we should take his advice and call out those who misrepresent what’s in the plan. Mr Obama, consider yourself called out.
H/T: Memeorandum
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