Appeals Court Upholds Obamacare Tax as Constitutional

Despite including a tax, Obamacare doesn’t violate the Constitution’s requirement that all tax bills originate in the House of Representatives, a key appeals court said Tuesday in a ruling that gives the Obama administration a health care win before the courts.

A three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia said that the Obamacare tax was “incidental” to the primary purpose of the Affordable Care Act, so it isn’t a revenue-raising measure as envisioned by the Constitution.

“Some exercises of the taxing power are not subject to the Origination Clause,” the unanimous panel concluded.

Attorneys behind the challenge vowed to appeal the decision to the Supreme Court, setting up yet another high-level battle over Obamacare after the justices last month weakened the administration’s birth control mandate, and another panel of the D.C. circuit said Obamacare’s subsidies should not be flowing to two-thirds of the nation.