CEI Daily - The Indiviudal Mandate, the 1099 Rule, Ethanol and Egypt

Individual Mandate

Since Judge Vinson's decision against the health care law hinged on the individual purchase mandate, Democrats are boasting about the fact that that the mandate was a Republican creation.


Senior Fellow Greg Conko points out that libertarians were always against the individual mandate.


"It’s worth noting that most of us in the free market movement have never embraced the health insurance purchase mandate. And I’m proud to dig out of the archives an old Cato Institute paper (pdf) written by my former CEI colleague Tom Miller (now at the American Enterprise Institute), which roundly criticizes the 1993-94 Republican compromise legislation. Tom found a lot of faults in those bills, and he singled out the individual purchase mandate as being especially egregious."



1099 Rule


The U.S. Senate rejects repeal of the health care law as a whole, but overwhelmingly approves repeal of a provision requiring frequent filing of IRS 1099 reports for small purchases by businesses.


John Berlau, director of CEI’s Center for Investor and Entrepreneurs, explains why the 1099 rule, as well as restrictions on purchases of over-the –counter drug purchase by flexible spending accounts and health saving accounts, “have proved to be the most burdensome to doctors, entrepreneurs, consumers, and savers and investors.”


"Although the 1099 rule and medicine cabinet tax can both be ended before full repeal of the health care law, it should be remembered that they were enacted because of the flawed process of ramming this bill through Congress. Both are gimmicky revenue “offsets” done so the Congressional Budget Office would technically score Obamacare as reducing the deficit, and score repeal of the law or even of these individual provisions as increasing it."



Ethanol and Egypt


American farmers are growing corn instead of wheat to cash in on ethanol subsidies, which has contributed to the rise in wheat prices in countries that import wheat.


Senior Counsel Hans Bader talks about the effect rising food prices has had on Egypt.


"As I previously noted, the rise in food prices in Egypt seems to have strengthened the anti-American Muslim Brotherhood, rather than the small pro-western reform movements in Egypt, by radicalizing the slums of Cairo, whose residents sometimes rely on relief provided by the Muslim Brotherhood (the only Egyptian political movement that provides non-governmental charitable services), and who have little connection to the Westernized middle class."