Friday, June 29, 2012

One more bit about the Obama healthcare ruling

I've heard some people (source) complain that the Obama care individual mandate 'tax' is not a tax because it is " punitive, regulatory, and intended to compel."

Apparently these idiots don't know what a tax is.   Again, I repeat, as per the US constitution (source) there four types of tax like payments government can require:

  1. taxes
  2. duties
  3. excises
  4. imposts

So, what are the differences?  (source)

A "Tax" is to specifically raise income.  It is not punitive, regulatory or intended to compel

A "Duty" is placed on things you import or export. Any international traveler knows what a 'Duty free shop' is.   For example sugar has a duty on it.  It is there specifically to prevent people from importanting sugar.  It protects American sugar manufactures.  In other words, it is a kind of tax that is PUNITIVE,  REGULATORY AND INTENDED TO COMPEL.

An "Excise" is "taxes on the manufacture, sale, or consumption of goods, or upon licenses to pursue certain occupations, or upon corporate privileges".  Note the word license to pursue certain occupations or privileges.  In other words, it is REGULATORY.

Imposts are everything else.  Including the individual mandate.  They can be punativie, regulatory and intended to compel.

Part of the problem is that people are combining the word 'tax' to include duties, excises and imposts.   Technically they are different things.  The rules that apply to an income tax do not apply to duties, excsies and impost taxes.

The fact that some people don't know about duties, excises and impost taxes are just examples of ignorance.

READ THE CONSTITION.   Otherwise you are just an idiot talking out of your hat.


P.S.  Obama said it isn't a tax earlier.  As I stated here, technically he is correct, it is a an impost, not officially a tax.

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