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White House: Health Law Creates Penalty, Not A Tax

WASHINGTON (June 29, 2012)--The White House was pushing back Friday against claims that President Barack Obama's health care law would mean new taxes for many people.

A day after the Supreme Court upheld most of the sweeping law, White House press secretary Jay Carney said the measure will create a "penalty" that will affect about 1 percent of those who refuse to get health insurance.

He said the penalty was modeled after one put in place in Massachusetts when Republican Mitt Romney was governor.

Romney is now Mr. Obama's presidential challenger.

The "tax" versus "penalty" label is important because the high court said the penalty essentially is a tax, and that's why the government has the power to impose it.

Republicans have said the health care law will amount to a large tax increase for many people.


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