Taxes Come And Taxes Go

This is one of the few posts I will ever do on the ACA (Obamacare) because there is way too much BS flowing around the subject……but there is a firestorm going on on the web because of something a restaurant did to its patrons……

An otherwise nondescript restaurant chain in Florida is suddenly national news thanks to a new policy: Gator’s Dockside has added a 1% surcharge to cover the costs of the Affordable Care Act, reports CNN Money. Participating restaurants aren’t trying to hide it, either. “The costs associated with ACA compliance could ultimately close our doors,” reads a sign to patrons. “Instead of raising prices on our products to generate the additional revenue needed to cover the costs of ACA compliance, certain Gator’s Dockside locations have implemented a 1% surcharge on all food and beverage purchases only.” An executive with the chain estimates that it will cost $500,000 a year to provide all its workers with insurance when the employer mandate kicks in next year, and she figures the surcharge will bring in about $160,000 annually.

As one would expect there is a wealth of opinions…….

  • Dumb move: “Obviously, the restaurateur is thinking about this from the perspective of an angry talk-radio-listening Republican rather than that of a hard-headed capitalist,” writes Jonathan Chait at the Daily Intelligencer. “There are costs associated with all kinds of government regulations and spending, but he’s not creating a line item on his tab to highlight his share of, say, financing the Department of Defense.”
  • Smart move: “As the surcharge shows, Obamacare is no free lunch,” writes Katrina Trinko at the Heritage Foundation. “Most businesses probably won’t opt to add a specific surcharge in order to cover their new health care costs, but some will certainly raise prices—or reduce quality of their products. Obamacare hasn’t driven down the costs of health insurance, or found a magical new source to cover those costs.”
  • Similar move: Eater notes that a popular Los Angeles restaurant, Republique, asks diners to pay a 3% surcharge for employee health care costs. The restaurant makes it optional, however, and says it is not specifically tied to the new law’s mandates.

Now my take……you may call it whatever you like surcharge or tax….it is the same thing……my problem is with the 16th amendment…….

Article I, Section 2, Clause 3:

Representatives and direct taxes shall be apportioned among the several States which may be included within this Union, according to their respective Number

Article I, Section 8, Clause 1:

The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States.

If it is a tax then why is only one individual doing it?  The name is irrelevant……..it is like the visit to the auto repair shop….take a look at you bill…….there will be a ‘surcharge’ for shop supplies……I do not like that either….but if these people can get away with it why not Gator’s Dockside?

If one opposes taxes then one should be in opposition to this ‘surcharge’.  I was unaware that an individual could level taxes I thought that was the duty of the state…….call it what you like a tax is a tax…….I will admit that it is creative….but is it legal?

Enough said?

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