Supreme Court Upholds Obama Health Care Law
by Terri Eyden on
By Christina Camara
The U.S. Supreme Court, in a 5-4 decision this morning (June 28, 2012), upheld President Obama's health care law, declaring the individual mandate constitutional as a tax.
The requirement that most Americans buy health insurance or pay a fine starting in 2014 has been the most unpopular and controversial element of the health care law.
Chief Justice John Roberts provided the key vote to preserve the landmark law. Justices Antonin Scalia, Anthony Kennedy, Clarence Thomas and Samuel Alito dissented.
The government had argued that Congress had the authority to pass the individual mandate as part of its power to regulate interstate commerce. The court disagreed, instead preserving the mandate because the fine amounts to a tax. Opponents believed the mandate to be unconstitutional, arguing that if the federal government could compel people to buy health insurance, "it could compel them to buy almost anything," the New York Times reported.
Roberts wrote in the decision that the penalty's "practical characteristics pass muster as a tax under our narrowest interpretations of the taxing power," the Wall Street Journal reported. A person who does not wish to carry health insurance is left with a "lawful choice to do or not do a certain act, so long as he is willing to pay a tax levied on that choice," wrote Roberts.
Political observers are calling the ruling a victory for President Obama. Most of the law was upheld, but the justices also found fault with expansion of Medicaid, making some changes there. Under the ruling, states have some flexibility not to expand their Medicaid programs, without paying the same financial penalties written into the law, the New York Times reported.
You may like these other stories...
Ernst & Young 2013 audit deficiency rate 49%, regulators sayMichael Rapoport of the Wall Street Journal reported on Thursday that the Public Company Accounting Oversight Board (PCAOB) found deficiencies in 28 of the...
Some of your clients may get away to business conventions from time to time. It gives them a chance to rub shoulders with colleagues, catch up on the latest developments, and fine-tune their skills. And, when the meetings or...
PwC must face $1 billion lawsuit over MF Global adviceA federal judge on Wednesday ordered PricewaterhouseCoopers (PwC) to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the...
Upcoming CPE Webinars
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.