By Hank Adler
Saturday, February 15, 2014
The President has reached "You have to be
kidding!" stage of executive orders. The latest executive order with
respect to Obamacare, as summarized in the Treasury Department 'Fact Sheet',
provides:
The employer responsibility provision will generally
apply to larger firms with 100 or more full-time employees starting in 2015 and
employers with 50 or more full-time employees starting in 2016.
While the employer responsibility provisions will
generally apply starting in 2015, they will not apply until 2016 to employers
with at least 50 but fewer than 100 full-time employees if the employer
provides an appropriate certification described in the rules.*
* Those that claim the exemption for 2015 will need to
certify under penalty of perjury that they did not reduce their workforce to
fewer than 100 employees in order to qualify.
Nothing about this executive order passes constitutional
muster:
· Executive orders cannot create or change law. Executive
orders are for the purpose of administrating law.
· Executive orders cannot change one hundred years of
court decisions allowing (or in fact encouraging) taxpayers to plan their
activities under the tax law to create the lowest possible tax.
Executive Orders - Administration, Not Law
Until the Truman administration, there were no rules or
guidelines outlining what a president could or could not do through an
executive order. The rules and limitations were provided by the Supreme Court
after President Truman issued an executive order placing all steel mills under
federal control. President Truman had determined to create his own law.
Challenged in the Courts, President Truman's action found itself before the
Supreme Court in the case of Youngstown Sheet & Tube Co. v. Sawyer. The
Supreme Court ruled that a president could not make law; the Supreme Court
ruled that a president could only clarify or act to further a law put forth by
the Congress or the Constitution
There exists no mention in the Section 4980H of the
Affordable Care Act, the section of the law that provides small business
exemptions from the Obamacare insurance requirements, for an employer group of
50 to 99 employees. There specifically exists an exemption for employers who do
not have 50 or more employees for "120 days or fewer". There is not a
sentence, phrase, concept or inference of a third group of 50 to 99 employees.
The determination that small business for the purpose of healthcare insurance
was a specific and enumerated part of the law. President Obama is absolutely
writing new law when he creates his own special category of employer size. The
size of the small business unit exempted from the law is a decision made by
Congress; it was not an alternative offered to the President. It is
unconstitutional for a President to create his own law.
Tax Law
Supreme Court Justice Roberts determined that Obamacare
penalties and mandates are essentially a tax law.
The concept that a taxpayer must certify that they did
not reduce their workforce to fewer than 100 employees in order to qualify for
the 2015 exemption from the insurance requirement has to have the
constitutional law professors at the University of Chicago where President
Obama was allowed to teach constitutional law hiding under their desks. Perhaps
the two most famous quotes in the history of tax law in the United States
belonged to Judge Learned Hand:
"Any one may so arrange his affairs that his taxes
shall be as low as possible; he is not bound to choose that pattern which will
best pay the Treasury; there is not even a patriotic duty to increase one's
taxes."
"Over and over again courts have said that there is
nothing sinister in so arranging one's affairs as to keep taxes as low as
possible. Everybody does so, rich or poor; and all do right, for nobody owes
any public duty to pay more than the law demands: taxes are enforced exactions,
not voluntary contributions. To demand more in the name of morals is mere
cant."
The very thought that a taxpayer must certify the reasons
that they made a specific business decision flies in the face of almost one
hundred years of tax law litigation. Essentially, the taxpayer must only comply
with the express language of the law and not engage in a series of artificial
steps to side-step a statute. The idea of a certification is not considered in the
Affordable Care Act and is clearly unconstitutional. In reality, any challenge
to a certification would be silly; the IRS does not have the mind melding
techniques available from a Star Trek episode to enforce the laws of the United
States of America.
Ignored in this piece is the equally unconstitutional
executive order by the Obama Administration to change the employer mandate for
large employers from 95% of employees to 70% for 2015 which ignores the, of
course, unconstitutional executive order to move the enforcement date from 2014
to 2015. If a new president of any party did this with respect to legislation
passed by a prior Congress and signed by a prior president, there would be
calls for impeachment.
There are 156 Members of the House of Representatives and
55 Senators in the U.S. Congress who are lawyers. Not a single one of them does
not know that the President has over-reached and is acting in an
unconstitutional manner. Not a single member does not know that the historical
precedent being set by this president is dangerous to the Republic. It is the
job of a freely elected Congress to stop this abuse today regardless of whether
they agree or disagree with the substance of the executive actions being
promulgated by the President of the United States. While seemingly unnecessary
because of the actions of the Supreme Court, the nation would be well served by
specific and limiting codification of executive orders.
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