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Obama‘s Deputy Campaign Manager Tries to Explain to The Blaze’s Will Cain How ‘Obamacare’ Is a Penalty & Not a Tax

During a panel discussion on CNN’s “Starting Point with Soledad O’Brien,” President Obama’s deputy campaign manager Stephanie Cutter found herself trying to explain to The Blaze’s Will Cain that “Obamacare” is actually a penalty and not a tax like the Supreme Court said it was.

“Stephanie, I think it’s pretty incontrovertible that [SCOTUS’ ruling] is a win for the president, at least in the short term. But do you see it as not problematic that the president and Congress said this was not a tax?” Cain asked.

“We could play clip after clip of the president saying ‘this is not a tax’ and he made a promise to the American people not to raise taxes on the middle class. Then yesterday, we learn, in fact, that it was a tax. Is that not problematic?” he added.

Watch Cutter’s response [at the 01:55 mark]:

 

“Well, let’s break that down for a second,” Cutter responded. “What John Roberts said is that we have the power to impose this penalty on people through the taxation clause. It’s a penalty. Let’s talk about who this impacts. Most people have private insurance. I’m assuming everyone at this table has private insurance, so it doesn’t apply to us.”

“So you said, it’s a penalty?” Cain asked.

“It’s a penalty.”

“But yesterday we learned it was a tax.”

“Let me finish,” Cutter responded. She continued:

I’m assuming everyone at this table has private insurance. So, this penalty does not apply to us. There are some people who are choosing not to get insurance because they can’t afford it. The healthcare law makes it affordable for the American people through the largest middle [class] tax cut in history.

So, after receiving this tax cut and putting the law in place, a very small amount of people, according to independent analysis less than one percent of the American people, will still choose not to get health insurance. And for those people, what we call “free riders,” what Mitt Romney has called “free riders,” we pay their healthcare cost, up to $1000 on our premiums. So they need to take individual responsibility for their healthcare and pay a penalty if they choose not to get it.

As you can see, her response, though verbose, doesn’t exactly address Cain’s question. If the highest court in the country ruled that the president‘s healthcare law is constitutional only if it’s a massive tax, then shouldn’t that be a bit of a problem seeing as how he is campaigning during a time of high unemployment, low consumer spending, and painfully slow economic growth?

“I’m still thoroughly confused now,” Cain responded, “Is your position ‘it’s a tax’ or is it a penalty?”

“It’s a penalty. That, if you choose not to get healthcare, and you’re imposing a hidden tax on all of us because we pay for your healthcare, then you’ll pay a penalty.”

This story has been updated.

Comments (98)

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  • Celeste.Christi
    Posted on June 29, 2012 at 7:30pm

    Expose the bill as a tax and liberal heads explode.
    Good for Roberts — He’s re-set the meme.

    It’s 2010 all over again…..

    Report Post » Celeste.Christi  
    • rickc34
      Posted on June 29, 2012 at 8:42pm

      tax and penalty what is the difference. Obabutt created a whole new tax, read my lips this is not a tax and I am a big liar and thief

      Report Post »  
    • jwt
      Posted on June 29, 2012 at 8:52pm

      ccorrect , congress can resind a tax. the mandate would have been by presidental order and was rejected by the court. A new congress and senate can kill the tax. the court put a spike in goverment expansion

      Report Post »  
    • dmerwin
      Posted on June 30, 2012 at 12:11am

      Okay then if it is not a tax it is not constitutional and Obama should strike down the law. This is what should happen on 1/23/2013 President Romney issues an executive order for the DHSS to grant waivers to ANY company asking for one just as Obama has done for the unions and McDonalds. He issues an executive order for ANY state to drop out of the expanded Medicaid provision and tells the states that opt in it will be on THEIR dime and the federal government will not reimburse them or bail out states faced with bankruptcy. Immediately form a committee to tackle tort reform at the national level based on the commerce clause and allow interstate sale of health insurance based on the same grounds. Encourage states to develop medicaid clinics to keep non emergent medical issues out of the ER. Allow healthcare organizations to sue to collect from uninsured patients to include garnishment of wages. Problem solved. Oh allow wealthy liberals to form corporations by which they can direct charitable contributions towards filling the health care needs of the country. BTW who will pay now for illegal alien health care or will they be taxed for not having health care coverage?

      Report Post » dmerwin  
    • chalkdust
      Posted on June 30, 2012 at 4:31am

      JWT
      That’s an interesting take JWT. As the constitution solely grants congress the power to levy tax they could conceivably set the tax/penalty at zero. I do like that, BUT the ruling did not limit federal power. In fact it made it much easier to exert more control over the American people by coercion of the tax/penalty. Don’t do this and pay the tax/penalty. It’s precedence now. And it’s not just expansion of power at the federal level, conceivably this could be used all the way down to your city or county government. Use your imagination just like politicians do as to what they can do with this new power. Although, as citizens, we do have the ability to make any politician so afraid to exercise this new power that none dare do it. That is a little comforting but do you really think we have it in us to hold them responsible? We have clearly failed at that for some time now, so I doubt any politician fears the people.

      Report Post » chalkdust  
    • michael48
      Posted on June 30, 2012 at 12:56pm

      reguardless..long term, Roberts opened up a whole new can of worms…Buy and eat your spinach or I’ll tax you…

      Report Post »  
    • GODONOURSIDE
      Posted on June 30, 2012 at 4:58pm

      DMERWIN

      Illegals get the obummercare for free. It’s in the language! We get to pay for illegals…whooohooo!

      Report Post »  
    • bingo35
      Posted on June 30, 2012 at 8:00pm

      Stephanie Cutter doesn’t seem to get that it MUST be a tax in order to enact. John Roberts said quit playing with ‘labels’ and call it for what it is. A TAX on the poor and middle class.

      This is no longer obamacare but obamaTAX

      Report Post »  
    • bingo35
      Posted on June 30, 2012 at 8:04pm

      No Dmerwin, obummer cannot strike down a law as he has been known to do b/c he doesn’t like it. He has no authority (not that has stopped him mind u). However, if he insists it is not a tax, then he has no choice but to tell Congress to repeal the obamaTAX. Per SCOTUS obamacare does not exist only obamaTAX.

      Report Post »  
    • rc30
      Posted on June 30, 2012 at 8:21pm

      Lies Lies Lies. Humm cost went down. That why my boss came in and showed us the health cost a year ago. Then showed what he pays now. Then told us what his cap is. Now we all loose a dollar per hour worked to help pay for it. But hey the cost goes down. DAMM LIERS

      Report Post » rc30  
    • Anamah
      Posted on July 2, 2012 at 7:17pm

      They are organized to memorize how to talk ,,, they say the same thing in the exasct same mode… they never answer the question. Everything come from Left think tanks, in line with Media Matters, W.H., DP, and all their groups and organizations… They talk as hypnotizes, everywhere … and they have their Trojan Horses talking and talking and talking … in all the media outlets, repeating their rhetoric, inserting in each discussion the same concept as they have been ordered… They are professional lier salaried… under Alinsky rules.

      Report Post »  
  • BubbaCoop
    Posted on June 29, 2012 at 7:29pm

    You don‘t pay for my health care just because I don’t have insurance!!!!!!!!!

    I don’t USE the health care system, and if I do, I’ll pay for it myself.

    Report Post »  
    • Komponist-ZAH
      Posted on June 30, 2012 at 1:15am

      WHAT!!? Pay for it yourself!!?

      …you can do that? What a novel concept!

      In all seriousness, that’s precisely what we all should do—ObamaCare be d@mned. Don’t buy (so-called) health “insurance”, don’t pay the “penalty”. Show them that We the People will not abide by immoral “laws”.

      Report Post »  
    • Kathy H
      Posted on June 30, 2012 at 1:08pm

      I agree I pay for my healthcare out of pocket, but what I would LOVE to see done is, a group of doctors maybe all the ones in congress to open a clinic and a hospital for us CASH only patients vs insurance patients. They would make money hand over fist and we the patients would get top notch care.. Since Charitable Hospitals will soon be taxed/penalities so what happens to St. Jude and alot of the free research hospitals Muscular Dys etc. if this law is not repealed.

      Report Post » Kathy H  
  • barber2
    Posted on June 29, 2012 at 7:26pm

    Remember the last Democrat “ Affordable ” Act ? Ho.Ho. The Old Affordable Housing Act that pressured ( oh, those ACORN types know how to pressure ! ) banks to give loans to those “ discriminated against ” poor minorities who didn’t have homes ? ( of, course the fact that these discriminated against people also did not have jobs or good credit histories was ignored because they were ” being discriminated against !” ) The Democrats. When they aren’t playing the Blame Card, the the Race Card , or the Discrimination Card, they are telling lies, twisting the truth, dividing the country, and blowing up the economy !

    Report Post »  
  • sandrunner
    Posted on June 29, 2012 at 7:22pm

    This judgement call is a fraud. I will not comply to one mans opinion to write in law. Robert is not my representive and Robert has no right as judge to write law. That is congress job, not some little wanna-be judge to tell me so.

    Report Post » sandrunner  
    • barber2
      Posted on June 29, 2012 at 7:28pm

      Huh? The chief justice is a ” wanna be judge ?”

      Report Post »  
    • loriann12
      Posted on June 29, 2012 at 7:32pm

      I think he made it a tax to pi$$ Americans off, and rightly so. If he had just voted against it, they would have blamed it as being all political, since they see it that way anyway. They don’t want health care, or they wouldn’t have exempted Congress from it, they just want to make Republicans look like the bad guy. And the clueless liberals are only cheering because they beat the GOP, because they don’t understand the bill and how it will effect them. Our Middle class just become lower class, upper-middle just became middle and when the limosine liberals figure it out, it will be too late.

      Report Post »  
  • barber2
    Posted on June 29, 2012 at 7:20pm

    Just another Big Lie from the Obama Democrats . Just like the DOJ ‘s action from our ” above the law, ” Executive Order, Czar appointing Obama Administration today. They are just like the union mobs who crippled the legislative process in Wisconsin, and the Democrat legislators who fled the state when they lost the 2010 election, and the Occupiers who plugged our cities and cost taxpayers a fortune. When Democrats don’t get their way, they obstruct . How about the Leaks to the Media ? Why is this NOT being pursued ? This administration makes both Carter and Nixon look good. No-Bama 2012. No Democrats 2012.

    Report Post »  
  • mersey
    Posted on June 29, 2012 at 7:12pm

    So there are 21 new tax increases in Obamacare. The Democrats are telling us that all of them are penalties? We are now penalizing charity hospitals? We are now penalizing medical supply companies, doctors and insurance companies? The Democrats are telling the American people that only 30 million people who are currently uninsured will pay the penalty. We all know this is B.S.! Every American will see the “penalty” come out of their paychecks, and all the new “penalties” against the medical industry will be pasted on to the taxpayer.

    Shout it from the rooftops America, Obama has raised everybody’s TAXES!

    Report Post » mersey  
  • garbagecanlogic
    Posted on June 29, 2012 at 7:05pm

    Boy, did cutter look like she was put on a spot, she looked like she didn’t really believe what she was spouting. Poor Will, not only going up against 5 liberals, but doing it on liberal cnn.

    Praise Be To Obama. Psalm 109:8

    The U.S. Out Of The U.N.
    The U.N. Out Of The U.S.

    Report Post »  
  • livingstone
    Posted on June 29, 2012 at 7:02pm

    All day today I have seen liberal spinners trying to excuse Obama‘s and the Democrats in congress lies by falling back on ’well Romney called it a fine or penalty in Massachusetts’. Just once I would like the conservative commentator to point out that while that may be true – No one in Massachusetts is in fear of having their lives ruined by the IRS if they don’t comply. A law enforced by the IRS is a TAX!

    Report Post »  
  • Berbel73
    Posted on June 29, 2012 at 7:00pm

    Either way you cut it the federal government is now mandating as a condition of your citizenship that you either have to purchase a product or face a fine/penalty/tax. This precedent now gives the federal government the authority to legislate through taxation any behavior necessary that it deems detrimental. Once all of the money for this “free healthcare” begins to run out you will see the federal government put this now power to use by taxing everything that they claim is “unhealthy”. Cass Sunstein and the progresssives’ wet dream has finally come true thanks to justice Roberts. As conservatives our only hope is to use this new power against the wealthy liberals before they can use it against us.

    Report Post »  
    • loriann12
      Posted on June 29, 2012 at 7:35pm

      They keep comparing it to auto insurance. With auto insurance if you don’t want it, don’t drive. With health care being mandated the only way out is to not be alive. If you work, they will take your money with higher premiums (did you know they want doctors to see patients as follow-up for free? They‘ll herd us through like cattle to not spend as much time on a freebie they know they won’t get paid for). The only way to get FREE health care is to qualify for medicaid. And that’s the Cloward and Piven strategy.

      Report Post »  
  • NoNannyState4me
    Posted on June 29, 2012 at 6:57pm

    Will got trampled by a truckload of bullshizzle.

    Report Post » NoNannyState4me  
  • AllLost
    Posted on June 29, 2012 at 6:57pm

    That Gov said that premiums are not going up as fast as in the past???? My premiums have skyrocketed and this year they went up and we now have a large deductible. How can people so blatantly lie like this?

    Report Post »  
  • MeteoricLimbo
    Posted on June 29, 2012 at 6:54pm

    Oi Vey! Talking with Liberals is like trying to pick up snot

    Report Post » MeteoricLimbo  
  • I.Heart.America
    Posted on June 29, 2012 at 6:54pm

    Conservative Ted Cruz of Texas for U.S. Senate…..moneybomb

    Knock Out ObamaCare
    https://secure.piryx.com/donate/MuvqSNzw/tedcruz/repealit

    Report Post » I.Heart.America  
    • BacktotheFounders
      Posted on June 30, 2012 at 12:35pm

      There are four others just like Cruz that we can count on. Please forward this to everyone in your address book. If one million people sent one dollar each, they’d never miss the $1.00, and look how much they could help. You can use a credit card or send a check.

      http://senateconservatives.com/

      Report Post »  
  • bsnrn98
    Posted on June 29, 2012 at 6:52pm

    Liars, liars, pants on fire democrats

    Report Post »  
  • foodforthought
    Posted on June 29, 2012 at 6:52pm

    If enough Democrats keep calling this a penalty, maybe Justice Roberts will ultimately conclude his interpretation of Congress’s meaning of penalty was incorrect, and declare Obamacare unconstitutional.

    Report Post »  
  • BreeZee
    Posted on June 29, 2012 at 6:52pm

    The lefts word game is on again. The masses must now be lead to believe its a penalty and not a new tax, remember no middle class tax hikes. the bill itself before roberts ruling has an additional 21 new taxes in it already.

    Report Post »  
  • DoomsdayProphet
    Posted on June 29, 2012 at 6:52pm

    This wakes the American people more than overturning it. This was his intention. A referendum on governmental power from the TAX PAYERS in society. You see until you touch someone in the wallet you really do not see much objection. Well, they are not only touching our children‘s piggy banks now but their great grand children’s as well…Logically this was the best way to get rid of Obama.

    Report Post »  
    • team1blazer
      Posted on July 1, 2012 at 5:45pm

      I understand your logic, BUT it is NOT his job to decide winners and loosers or policy. His job is simply to interpret the law and either uphold or dispute its constitutionality. HE FAILED. Anyone with a modest understanding of the constitution knows that this bill is Totally Unconstitutional, as it imposes a requirement to purchase a good or service, for the privilege of living. You have now denied me the liberty of providing for my own healthcare. You have also just opened up a big can of worms that WILL be used in the future to force Americans to buy other “stuff”. This decision is a treasonous offense.

      Report Post » team1blazer  
  • EBL
    Posted on June 29, 2012 at 6:51pm

    Obamacare should have been in the dust bin of history today, but for John Roberts. Sorry if I cannot call this a “victory.”

    Report Post » EBL  
  • TSUNAMI-22
    Posted on June 29, 2012 at 6:49pm

    Here’s a 20 minute piece by peter Schiff on the reality of what happened yesterday. He rambles, but he’s dead-on in my opinion.

    http://www.youtube.com/watch?feature=player_embedded&v=NNCyEC9r_mk

    Report Post »  
  • EBL
    Posted on June 29, 2012 at 6:49pm

    http://evilbloggerlady.blogspot.com/2012/06/separated-at-birth-john-roberts-and.html Separated at Birth: John Roberts and..?

    Report Post » EBL  
  • EBL
    Posted on June 29, 2012 at 6:48pm

    Acutally, Obama’s campaign is not wrong. Professor Jacobson (in refusing those Qusling Republicans who declared this ruling a “victory”) noted that most of the Roberts opinion is dicta (not binding commentary). http://evilbloggerlady.blogspot.com/2012/06/thank-you-john-roberts-for-moving-my.html Roberts dicta aside, the liberal justices did not buy it was a tax. They just used Roberts’ vote to win. And we can expect Obama to make the same arguments till November.

    Report Post » EBL  
  • Cajun Tea
    Posted on June 29, 2012 at 6:47pm

    It’s because someone is black. That’s their answer to everything else, so why not this?

    Report Post » Cajun Tea  
  • marcus_arealius
    Posted on June 29, 2012 at 6:43pm

    During the oral arguments the lawyer for the government kept saying the word ‘tax’. The justice asked him about that and he said ‘tax penalty’.. Ok, so if it‘s a ’tax penalty‘ then by definition it’s a penalty ON A TAX NOT PAID. So paying for the insurance is the tax and if you don’t buy it, you are assessed a penalty. Why the hell do lawyers argue one word in some law text makes all the difference in the world and in this case words can be interchanged, inserted, deleted, overlooked, ignored and it’s all the same? Explain that you lying lawyer rats..

    Report Post »  
  • capitalistpig78
    Posted on June 29, 2012 at 6:37pm

    Penalty? Tax? It really doesn’t matter to me.
    It’s just more money the feds will waste.

    Report Post »  
  • AvengerK
    Posted on June 29, 2012 at 6:34pm

    Hey Cutter! IT’S A TAX STUPID! To be anything else makes it unconstitutional.
    This is the beauty of Roberts’ decision…the left is reeling right now.

    Report Post »  
    • GeorgieJo
      Posted on June 29, 2012 at 7:27pm

      She worked for TEDDY pass me a drink O’KENNEDY
      She is stupid and lucky to be alive

      ITS a TAX STUPID
      OMG 2012

      Report Post »  
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