The Power to Tax is the Power to Destroy

American Thinker 

So said Daniel Webster, counsel for the Second Bank of the United States, repeated by Chief Justice Marshal in McCulloch vs Maryland.

The new ObamaCare tax will destroy the medical insurance business.  That's because of the requirement imposed upon the insurers to cover everybody-- including those with preexisting conditions.  The idea of the mandate was to increase the number of insured to include those with lower risks of disease-- ordinarily some of these people would not purchase an insurance policy because of a perceived lack of risk of disease.  Those people, forced to purchase an insurance policy, would pay for the higher costs of insuring sick people with their premiums.  This is pretty much anti-business, as it guarantees higher costs, but gives no compensation in return.

The fine, now known as a tax -thanks to the Supreme Court- will not go to the insurers.  Since the tax is less than the premiums, the incentive is to pay the tax and save the money on premiums.  Fewer people will be insured-- here's why:  as those who are currently insured will have to pay higher premiums because everybody's covered provision, but those who are lower risk will drop their insurance and pay the fine or tax.

This will destroy the medical insurance business.  The tax will have the power to destroy and so it will.