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Thursday, October 14, 2010

"Tax Or No Tax" That is the question.

Obama defended the payment as a penalty and not a tax, but the Justice Department has argued that legally, it’s a tax. “Congress should not be permitted to secure and cast politically difficult votes on controversial legislation by deliberately calling something one thing, after which the defenders of that legislation take an “Alice-in-Wonderland” tack and argue in court that Congress really meant something else entirely, thereby circumventing the safeguard that exists to keep their broad power in check,” he wrote.
Vinson ruled that it’s a penalty, not a tax, and must be defended under the Commerce Clause and not Congress’s taxing authority.













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