Monday, March 26, 2012

The Supremes v. The Affordable Care Act (ACA)


It's anyone's guess right now what the ruling will be. But it's not out of the question that the Tax anti-injunction act argument will hold sway and the court will uphold the law by declaring the petition out of their jurisdiction. But there are ramifications and problems to follow if that's the way the court goes.

Consider Marbury v. Madison and the Tax anti-injunction act of 1867 then again in 1954..  (Putting aside the commerce clause argument for the time being) The President claimed earlier that in 2014 anyone not buying insurance will be in effect "taxed" via the IRS. (It's a tax if the IRS is collecting it, right?.) Since that "tax" hasn't occurred yet the lawsuits are sort of moot for now. . . The admin has dropped that argument with the declining numbers of the ACA. 

However, the Chief Justice is nobody's fool when it comes to politics.  Roberts has ordered the argument to be renewed thereby providing the court with the ability to rule that the case is not in their jurisdiction as was decided in Marbury. The argument is that the Tax Anti-injunction Act prevents the court's jurisdiction over the case if the healthcare law is perceived as a tax.

So Roberts will be able to pass the buck by actually upholding the health care law for now so that it can play out in the political theater this fall and that could be a greater advantage to the Republicans for this election.  But there might be a price to pay for that strategy for anti-tax activists in the long term if the Supremes avoid the issue. The declining numbers of the ACA may reverse given the sanction by the Supreme Court. (Grover Norquist doesn't hold sway here.) And taxes may not be perceived as something "evil." If the court rules this way then the first possibility for it come back to the federal courts and/or the Supremes would not be until 2015.

On the other hand if the court declares the ACA unconstitutional  via the Commerce Clause it will put another weapon in the Democrats' arsenal this fall, claiming that this was just another Republican/Conservative trick to subvert democracy and to slight the middle class and avoid healthcare issues or something like that. 

Sounds like yet again another HBO movie in the making.

Wednesday, March 14, 2012

Goldman Sachs exec calls it quits and berates his organization

Why I Am Leaving Goldman Sachs

 TODAY is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.

To put the problem in the simplest terms, the interests of the client continue to be sidelined in the way the firm operates and thinks about making money. Goldman Sachs is one of the world’s largest and most important investment banks and it is too integral to global finance to continue to act this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for. 
 
http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html?_r=1&hp

Tuesday, March 13, 2012

The Hypocrite in Everyone Else --NY Times Op Ed

The Hypocrite in Everyone Else

The continuous stream of reports detailing inconsistencies on the part of politicians makes it hard to believe that the rest of us might be as bad as they are.
Rick Santorum’s endorsement, when he was a senator, of the idea of trying to ensure higher education for everyone in Pennsylvania sits uneasily next to his recent condemnation of President Obama’s remarks along the same lines.
Mitt Romney called Obama’s healthcare plan “an unconscionable abuse of power,” strong language given the degree to which the plan was modeled on Romney’s own.

http://campaignstops.blogs.nytimes.com/2012/03/12/the-hypocrite-in-everyone-else/