Friday, June 07, 2013

Tax not Insurance

When Francis Perkins and Paul Douglas had their plans for unemployment insurance and pensions for senior citizens in draft bill form Justice Harlan Stone gave her a tip. She was afraid any great social insurance system would be rejected by the court and expressed those concerns to Stone at a tea. Justice Stone told her not to worry and told her "the taxing power of the federal government is sufficient for everything she wanted and needed. If the Social Security Act was formulated as a tax, and not government insurance, it could get through.

 

Supporters of Obamacare might want to consider Justice Stone's advice.

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