Judge Rules: 20 States have standing to sue over Obamacare

U.S. District Judge Roger Vinson had already indicated at a hearing last month that he could not uphold parts of a motion by the Justice Department to dismiss the lawsuit, led by Florida and 19 other states. "In this order, I have not attempted to determine whether the line between constitutional and extra-constitutional government has been crossed," Vinson, of the U.S. District Court for the Northern District of Florida, wrote in his ruling. Opponents of Obama's overhaul of the $2.5 trillion U.S. healthcare system have said it violates the Constitution by imposing, for example, unlawful taxes and requiring citizens to obtain coverage, among other issues. "I am only saying that ... the plaintiffs have at least stated a plausible claim that the line has been crossed," Vinson said. The suit was originally filed in March by mostly Republican state attorneys general. In his formal ruling on Thursday, Vinson said the case would continue as scheduled. He had previously set a hearing for December 16.

Here’s a few things I picked up about it..

In his order the judge cited several government documents that clearly indicated Congress knew the individual mandate was a major, possibly unconstitutional, expansion of federal powers long before the president signed the legislation into law

In passing the health care legislation, the last thing in the world that the House and the Senate supporters wanted to say is that the individual mandate is a TAX. In fact, they all said the opposite - that it was not a tax but a penalty. No one wants to raise taxes in an election year!! For political reasons, the health care bill supporters specifically did NOT call that individual payment a TAX.!

President Obama likewise ran from the word tax. He was emphatic about it...he said it was a PENALTY and not a tax! [He said, “absolutely not a tax!”] He did not want to raise taxes — especially on the middle class because he said he would not— to help get elected.

And now?

Had they simply CALLED it a tax....the health care legislation challenge by the states in Florida would have been struck down today and the Feds would have been a big winner. Why does that make it a difference? Because the Feds have broad authority under the Constitution to tax (Art. 1, Section ...and you can only challenge a tax AFTER you pay it (not before.) So had Congress called it a tax, the states or individuals could not challenge that part of the health care bill until 2014 and AFTER payment. With taxes, you must pay and then seek refund from the government (yes, I know, called “fat chance” in most instances!)

If it is a penalty, you can challenge now. Hence the case was not thrown out.

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