By Charles C. W. Cooke
Wednesday, February 15, 2017
Plus ça change, plus c’est la même chose. At Reason, Peter Suderman confirms that the
IRS will continue its Obama-era policy of accepting tax returns that lack vital
information about their filers’ compliance with Obamacare. As a result,
Suderman concludes, it will remain easy for “individuals to go without coverage
while avoiding the penalty.” Thus will the baton be passed sideways, from one
haughty emperor to another.
Prima facie, the IRS has a strong case for its declaration.
Contrary to initial reports, the move does not constitute a reversal of the agency’s policy but a
continuation of the approach that it took during the Obama years. Per Suderman,
the IRS was due this year to begin rejecting incomplete returns, but “reversed
course on February 3.” As such, the status quo will obtain. What was good
enough for Obama will be good enough for Trump, and the ACA will remain on the
honor system.
In addition, there is a material difference between
weakening a reporting requirement and obviating the mandate completely. As
Suderman confirms, “taxpayers are still required to pay the mandate penalty, if
applicable,” and — crucially — any liability incurred behind the scenes will
continue to accrue. Regardless of what he might write on his return, a taxpayer
who is audited and found to have lacked health insurance will be punished
according to the terms of the law. Nullification this is not.
Indeed, when compared with the extraordinary latitude
Obama claimed during his implementation of the ACA, one might argue that this
barely registers on the scale. Time and time again, the previous administration
ignored the clear text of the law in an attempt to limit its ill effects. As
was argued repeatedly in these pages, that was not a legitimate use of
executive power, but an extra-constitutional outrage that should have yielded
far more opprobrium than it did. That we are only now hearing cries of
“overreach” is irritating in the extreme.
Nevertheless, “Obama did it too” does not constitute a
defense of Trump, and that the move fails to destroy the mandate in toto does
not render it tolerable. As it did during Obama’s tenure, the IRS is announcing
its intention to ignore the lawbreaking that it has been charged with rooting
out. This is not quotidian “discretion,” which is inevitably “case by case,”
but an attempt to subvert a statute. The penalty’s merits to one side, this
should vex any conservative who is concerned by the executive’s increasing
tendency toward the non-enforcement of law.
Would this policy fly in any other area? The Gun Control
Act of 1968 prohibits felons, drug users, and the mentally ill from purchasing
firearms. As a result, ATF form 4473 includes a series of questions designed to
determine whether an applicant is disqualified from buying. If, at the scene of
a purchase, an aspirant answers “yes” to any of those questions, the seller is
required to halt the transaction. Were the ATF to decide that, henceforth, a
buyer could submit his form without filling in those parts, it could offer all
sorts of justifications in favor of its decision. It could contend, for
example, that it was only altering the information-collecting process, not
obviating the underlying law; that any felon, drug user, or mental patient
caught with a gun was still liable to be punished; and that, given the number
of guns being sold, it was simply not feasible for gun dealers to keep up with
the paperwork. And, in a narrow sense, it would have a point. But so would
those who argued that the move amounted to a blanket desire to decrease
enforcement of the law.
Which, of course, is exactly what it would be — just as
was the IRS’s approach under Obama, and just as it will be under Trump. It is a
serious transgression. As in my hypothetical, if a statute is causing problems
for the agency charged with enforcing it, the correct course of action is for Congress to change the statute. I
happen to agree with the critics of Obamacare who argue that using the IRS to
police health-insurance compliance is insane. What I cannot agree with,
however, is that this accords the executive a license to shirk its
constitutional law-enforcement responsibilities.
As it happens, one might argue that the IRS’s approach is
worse under Trump than it was under
Obama, both because the law is now old enough to be out of its “transition”
period and because it looks as if the agency’s reversal was the product of an
executive order. On January 20th of this year, Trump signed a missive
instructing his cabinet departments to “take all actions consistent with law to
minimize the unwarranted economic and regulatory burdens of [Obamacare], and
prepare to afford the states more flexibility and control to create a more free
and open health care market.” Can one doubt that the February 3rd decision was
a reaction to this? Had the decision-makers at the IRS come back from a work
retreat and concluded with a sigh that the mandate was unenforceable, the blame
could be put squarely at the feet of Congress. But they didn’t. They read
Trump’s words and canceled their plans for change.
This not a policy objection. I loathe the mandate and the statute to which it belongs — an
intrusive, abusive, and hubristic nightmare that elevates the federal
government way above its station and destroys the proper relationship between
the citizen and the state. If it is repealed, I shall rejoice as if it were the
Fourth of July. But the rule of law is yet more important still, and I consider
a government that rewrites statutes on the fly to be a far bigger threat than a
government that contrives ugly and unpopular programs. It is caprice, not
stupidity, which serves as the most potent enemy of freedom, and for years now
the IRS has been capricious in the extreme. Until such time as Congress amends
its mistake, the hideous statute it passed will remain on the books and in
force. For now, it must be respected — or we will soon enough have no law at
all.
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