Can Congress “Regulate” Decisions Not to Commit Federal Crimes Under the Commerce Clause?

One of the side-debates in the ACA decisions yesterday was between Chief Justice Roberts and Justice Ginsburg over the meaning of the term “regulate.” The Commerce Clause of the Constitution, Art. I, sec. 8, cl. 3, empowers Congress “[t]o regulate commerce . . . among the several states . . . .” Much of the pre-decision debate over the ACA mandate involved whether mandating the purchase of a service — health insurance — fell within the definition of “commerce.” This is where the famous “activity/inactivity” distinction arose: choosing not to buy something is not “commerce,” the argument went, and therefore not within Congress’s Commerce Clause powers.

Chief Justice Roberts didn’t exactly adopt that argument, however, in his opinion denying that Congress had Commerce Clause authority to mandate the purchase of health insurance. (I’m not an expert on Supreme Court voting rules, but there’s considerable debate about whether, even though five justices said the mandate was beyond the Commerce Clause, that’s actually a binding holding of the court.) Instead, what Roberts held was that mandating the purchase of health insurance isn’t regulation:

The language of the Constitution reflects the natural understanding that the power to regulate assumes there is already something to be regulated. . . . The individual mandate, however, does not regulate existing commercial activity. It instead compels individuals to become active in commerce by purchasing a product,on the ground that their failure to do so affects interstate commerce. Construing the Commerce Clause to permit Congress to regulate individuals precisely because they are doing nothing would open a new and potentially vast domain to congressional authority.

Nat’l Fed. of Indep. Bus., slip op. at 19, 20. This is a novel twist on the argument. Chief Justice Roberts is clear that he is not rejecting the idea that choosing not to buy health insurance affects commerce, at least in the same way that Filburn’s growing the wheat his family consumed affected commerce. It’s that a law forbidding individuals from making a choice not to do something doesn’t regulate commerce.

To an economist, perhaps, there is no difference between activity and inactivity; both have measurable economic effects on commerce. But the distinction between doing something and doing nothing would not have been lost on the Framers, who were “practical statesmen,” not metaphysical philosophers. . . . The Framers gave Congress the power to regulate commerce, not to compel it, and for over 200 years both our decisions and Congress’s actions have reflected this understanding. There is no reason to depart from that understanding now.

Perhaps I am missing something (a good friend of mine evaluated my argument below as follows: “Meh”), but I don’t see how this can be right.

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The Supreme Court’s Affordable Care Act Decision

For excellent, high-level analysis of the longer-term implications of the Supreme Court’s decision in the health care reform cases, see Lawrence Solum, The Decision to Uphold the Mandate as Tax Represents a Gestalt Shift in Constitutional Law. My impression is that Solum has been more infrequent in putting up substantive posts lately, but this one has him returning in fine form.

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Victory For ObamaCare!

The decision in National Federation of Independent Business v. Sebelius is a victory for the supporters of the Affordable Care Act, and a fairly broad vindication for the constitutionality of the law.  Here are my initial thoughts:

This is a big win for the Obama Administration.  The only portion of the law struck down is the Medicaid expansion provision, on the grounds that Congress cannot threaten to take away funds previously granted to the States if the States fail to accept new conditions.  This strikes me as a fairly reasonable gloss on the case of South Dakota v. Dole and, at the same time, a constitutional interpretation that still allows Congress a fair amount of flexibility to attach conditions to the receipt of new federal dollars.

I am not persuaded by Justice Robert’s argument rejecting Congress’ power under the Commerce Clause.  It strikes me as primarily conclusory rather than analytical, and my initial reaction is that it should be considered dicta since Justice Roberts upholds the ACA on other grounds.  Of course, I have already made clear that I am inclined to agree with Justice Ginsburg that the Court’s precedent under the Commerce Clause provides ample support for the ACA’s constitutionality, as I argued in previous posts here and here.

Nor am I convinced by Robert’s tax argument.  He labors a great deal to make the case that the ACA does not impose a “tax” for purposes of the statutory Ant-Injunction Act but nonetheless imposes a “tax” under Congress’ constitutional taxing authority.

It appears to me that Roberts tried to split the baby in a statesman-like way, by giving victory to Obama but by using reasoning and language designed to placate President Obama’s critics.  Am I the only person who read Justice Robert’s opinion and thought of Marbury v. Madison?

Continue ReadingVictory For ObamaCare!