jmog;1131460 wrote:False, the top MARGINAL rate was once 94%. You are smart enough to know that 94% marginal rate does NOT equal 94% of income like you insinuated.
Don't mislead Boat, either that was a bad omission mistake by you, or you meant to mislead.
You really have seemed to miss the point I was making. I was in no way referring to the efficacy of the high marginal rates with regard to revenue raising.
I'm referring to the fact that Supreme Court Justices were suggesting that the requirement to purchase health insurance may be unconstitutional because, as it has been suggested, based on the principle that permits Congress to require individuals to purchase health insurance, Congress might also require people to purchase broccoli in that very remote hypothetical scenario.
"Some socialist might require us to come along and by broccoli, buy a gym membership, buy a cell phone, etc. etc."
Yet, you could apply such logical extremes to taxation, for instance saying; "If Congress has the power to tax 1% of your income for social insurance...they might also pass a law taxing 100% of the taxpayer's income and redistribute it to a social insurance fund, which seems untenable. Therefore, The tax as a whole must be unconstitutional because of some remote potential consequence in the future.
^That is the same type of reductio reasoning people are applying to the individual mandate.
You could also apply this same type of reasoning to any number of things that the Court has ruled Constitutional...like conscription.
When I said Congress has raised the Top Marginal Rate that high it was simply to point out Congress has pushed the income tax to that extreme at one point to pay for the war and yet that even as it got close to the logical extreme, that doesn't make it in and of itself unconstitutional. But, what is our limiting principle? It is the Separation of Powers and the Political Process created by James Madison and the boys wherein the electorate can vehemently punish any legislator who attempts to raise taxes up to that type of level just like they would punish a legislature that tried to mandate the purchase of broccoli.
Congress already takes our money and purchases our healthcare for us in Medicare. Requiring us to Purchase it as opposed to taking our money and requiring us to use what they buy for us is a distinction without much true fundamental difference. At least here we would get a choice from private competitors in a marketplace. Congress has the power under the commerce clause allegedly to take your money over the course of your life and force you to accept socialized single-payer health insurance upon reaching retirement age. Requiring people to buy their own health insurance; as opposed to taking their money and buying it for them is hardly a substantive difference; It is merely a difference in form rather than substance. If one is proper and there's such little substantive difference I personally just don't see how the other isn't proper but maybe I'm an idiot.
All I know is that if I advised a client to pull of a transaction with similar niceties the IRS and the tax court would laugh in my face and go with Substance over Form all day long.
If the people don't want Obamacare let them elect a Republican government and repeal it.