Wednesday, July 25, 2012

Battle for Healthcare: Part IV


Now that the healthcare ruling has been completely digested by political officials, legal scholars, and the news, it seems clear that despite the remarkable achievement of the Affordable Care Act, there will be some significant hurdles over the course of the next couple years as the nation gets ready to implement the plan by 2014.    I just received my official copy of the slip opinion of the Court’s decisions and after reading it again, I am still positively amazed by the legal logic used by Chief Justice Robert’s logic.  Today I’d like to take time to discuss the political implications of the Majority’s ruling, specifically Roberts’ opinion, and also discuss the attempts to politicize and predict what the 5-4 ruling means for future decisions by the Supreme Court. 

Let’s start with the easiest part of the decision: the individual mandate as it relates to the Commerce Clause.   What is certainly clear is that there are five votes in the present makeup of the Supreme Court to ensure that the Commerce Clause cannot be used to force individuals to purchase a product.    The arc of the Commerce Clause is understandably broad.  Combined with the Necessary and Proper clause, the Commerce Clause has been used, since Wickard v. Filburn to enforce drug regulations, price controls, and racial policies aimed at places of public accommodation.  In Katzenbach v. McClung the Supreme Court noted that interstate commerce involves the ability for interstate travelers to partake in establishments designed to accommodate travelers.   Thus, the Commerce Clause was appropriately applied to allow regulations that forced restaurant owners and hotel owners to permit African Americans to enter these establishments. 

What has changed in the Commerce Clause analysis is the willingness of the Supreme Court to intervene in Congressional affairs as it relates to the clause.   In cases like Wickard, McClung, and U.S. v. Darby the Supreme Court gave Congress much deference noting that when Congress makes significant findings and has a rational basis for the regulatory scheme to protect commerce, judicial intervention is at an end.  McClung.  However, the most recent ruling makes it clear, that even despite a rational basis, the Supreme Court is now more willing to determine if other principles, namely the Tenth Amendment, and the original construction of the Commerce Clause, limits Congress’ ability to exercise the Commerce Clause power. 

The more difficult and politically important issue is the Chief Justice’s interpretation of the tax power.   I believe that Justice Roberts is absolutely right that the tax power, as a matter of constitutional interpretation, was properly exercised in the ACA.   Politically however, this is a double edged sword.   The current political quandry is whether President Obama “lied” when he said that the ACA was not a tax on the American public.  This is an abstraction.   Justice Roberts’ decision makes it clear that, if Congress is to pass similar legislation, it must openly declare that such legislation involves taxation.

The real political and practical issue, then, is how can Congress pass similar legislation if it must label the policy a tax?  Taxing anything in this country is anathema in politics.   Congress faces a fiscal cliff where if the government cannot make up trillions of dollars through taxes or budget cuts the government will enact sweeping cuts across the board.  The very reason why government is gridlocked into inaction, despite the grave consequences for such inaction, is because the nature of government spending, and whether taxes are a viable solution to the government’s fiscal woes.   My prediction for the ramifications of Justice Roberts’ opinion is that Congress, in order to solve big problems in the country, will have to rely on the tax powers and deal with the resultant political backlash for doing so because the Commerce Clause will not be a sufficient font of power to overcome other constitutional concerns.  In the face of diminishing Commerce Clause power, Congress will have to rely on the more politically dangerous Tax power.   It was really difficult to pass the ACA when everyone thought that it was a valid exercise of the Commerce Power.   Given the current political climate, it seems that any policy that must rely on the tax power is likely to fail in Congress. 

Another result of the ACA which is not political, but has been politicized, is Chief Justice Roberts’ switch from siding with Kennedy and conservatives in the dissent, to the liberal wing of the court in this decision.   Rumors had spread early when the decision was announced that back door politics had resulted in the Chief Justice switching his vote from striking down the ACA to upholding it.   Although conspiracy theories abound, it is not unheard of for justices, whatever their reasons, to switch sides in the middle of deliberations.   We now know that Roberts did in fact switch his vote from originally striking down the ACA to sustaining the act under the tax powers.   

Depending on the political paradigm of the speaker many in the press and in politics have either lambasted Roberts as a traitor or warmly embraced him into their fold.  Some have mused that perhaps Roberts is becoming a new moderate liberal on the court, willing to trade in his prior conservative credentials.    This is a foolish belief.   The Chief Justice likely has not shifted his legal ideology away from what it already is; a conservative jurist with an eye for adhering to well established constitutional principles for statutory and constitutional interpretation.  There are some important cases being decided next term and to rely on Justice Roberts as a new found moderate would be a strategic and logical error.   Rather than attempting to understand the Supreme Court, and its justices, in terms of political victories, like the press seems eager to do, think of the Justices as having their own methodology of legal interpretation, unconnected to our general political understandings.