My Blog
Peter Schiff continues:
“I think there are more problems if Europe does what Soros wants. If they want to prevent any short-term problems, they have to do a major bailout. They have to basically put the full faith and credit of the Northern European economies behind the debts of the South.
That would defuse the situation in the short-run, but not for long. It would create a much bigger problem in the long-run because then they have to worry about all of the stronger countries wanting out of the eurozone. The weak ones will want to stay there because they get a subsidy, while the strong ones will want out because they wont want to pay the bill.”
When asked about the Supreme Court decision on the health care bill, Schiff responded, “Well, it’s a horrible decision. The minority (dissenting view) was 100% correct. The whole thing should have been thrown out.
In the end, they basically said it was a tax. There wasn’t even an enforcement mechanism in there. There was a tax, but if you didn’t pay it, the government couldn’t come after you for the money....
Continue reading the Peter Schiff interview below...
Advertisement
To hear which company has one of the highest grade gold deposits
in the entire world, as well as a number of other
extraordinary projects click on the logo:
“They essentially said that even though the intent may have been to punish people for not buying insurance, the effect is that they don’t get punished because it’s really just a tax. They basically said it’s constitutional because it’s not going to work.
But it’s not a tax because a tax is there to raise revenue. This is not there to raise revenue, it’s there to punish you. It’s there to make you buy health insurance. So even though the Supreme Court said it’s not going to work, it doesn’t mean it’s constitutional just because it’s not going to work.
The intent is to make you do something, but the Supreme Court actually said that Congress doesn’t have the power to force you to buy health insurance. So if they don’t have the power, they don’t have the power.
So the first thing they did wrong was to say it was a tax when it’s not a tax. Then, once you accept the idea that it’s a tax, it’s a direct tax and it needs to be apportioned. But the Supreme Court said it’s not a direct tax, and they said it’s not a direct tax because not everybody has to pay it. The reason for that is only people who don’t buy insurance have to pay it.
That doesn’t change it from a direct tax to an indirect tax. It’s a direct tax on people who don’t buy insurance. A direct tax doesn’t have to be paid by everybody in order to be a direct tax. The income tax was declared unconstitutional as a direct tax. Not everybody paid it. Only the people who had income paid it, and only if you had income above a certain level.
So that is not a criteria over whether something is a direct or an indirect tax. This (health care bill) is a direct tax on people. They are taxing you if you don’t have health insurance, and you have to pay the tax directly to the government.
So it’s not an excise, it’s a direct tax. The Supreme Court is wrong there, and therefore it’s an unconstitutional tax because it’s not being apportioned. So they did two things wrong, they said something was a tax that wasn’t a tax. And then once they said it was a tax, they then identified it as an indirect tax, when it should be a direct tax.
The net of this is it’s going to weaken the economy even further because of the extra burden of higher health care costs. It’s going to damage the insurance industry dramatically because many people are going to opt to pay for the penalty, rather than to buy insurance.
So the insurance companies are not going to have the revenue to pay the claims. Basically, everybody who is sick is going to be putting in claims. The people who don’t get sick aren’t going to be paying a premium.”
Schiff also added: “Gold was down on Thursday, but it will go higher. People should be buying gold, not selling it, if they understand the broader implications of this bill. Not only of this health care bill, but the constitutional precedence that we are establishing here as far as granting the government more and more power.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
“The Real Crash: America’s Coming Bankruptcy --
How to Save Yourself and Your Country”
To order from Amazon CLICK HERE.
The interviews with legendary Art Cashin ($612 billion UBS), Jean-Marie Eveillard (oversees $50 billion) and Don Coxe ($538 billion BMO) are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Ben Davies, Nigel Farage, James Turk, John Mauldin, Egon von Greyerz and Gerald Celente by CLICKING HERE.
Eric King
Peter Schiff - Europe, Gold & The Health Care Bill
Today in his King World News interview, Peter Schiff was discussing Europe, gold, and the health care bill. Schiff, who is CEO of Europacific Capital, said there will be even more problems for Europe if Europe does what George Soros wants them to. But first, here is what Schiff had to say about the situation in Europe: “I doubt there will be any major resolution out of Europe any time soon. Will Germany cave and make the problem worse by bailing everybody out? Do they want short-term pain or long-term gain? Those are the choices.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
June 29, 2012
