“Developments in the last ten days make it more likely that the entire U.S. Court of Appeals for the D.C. Circuit will agree to hear the leading challenge of the Pacific Legal Foundation (PLF) to the Obamacare individual-mandate penalty — and whoever does not prevail at this level will have a compelling case to take to the Supreme Court. An order from the D.C. Circuit last week, instructing the Obama administration to respond to PLF’s petition for rehearing, and an impressive set of amicus briefs supporting PLF’s petition filed yesterday confirm that this is no ordinary litigation.
Readers will recall that Chief Justice John Roberts joined four justices in 2012 to hold that the individual mandate was not authorized by the Commerce Clause or other congressional power, but he sided with four other justices in holding that the penalty for not buying insurance could be read as a tax, pursuant to Congress’s taxing power. No judge below had accepted the tax theory, so the debate over the tax issue in the Supreme Court briefs was truly brief. The Court was careful to write that Congress still had to comply with all constitutional requirements for the exercise of its taxing power, so the initial Obamacare ruling did not purport to end litigation that raised that and other issues.”