DaveSimmons
Elite Member
- Aug 12, 2001
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I looked up the Mass law:
http://www.malegislature.gov/Laws/SessionLaws/Acts/2006/Chapter58
I would say it is a penalty in Mass...especialy since it is Constitutional for a State to do this, so it would not have to be called a tax in order for it to be allowable. Therefor, it is not a tax but a penalty, per the law.
So Romney is correct when he says it is a penalty and not a tax.
It's a tax penalty though -- and Romney himself called it a tax in his USA Today opinion piece. He had as much time to write that as he wanted, so it can't be called an accidental misstatement while speaking off the cuff.
He called it a tax, until he decided not to call it a tax.
From the law:
"(ii) claims an exemption under section 3, or (iii) had a certificate issued under section 3 of chapter 176Q. If the person does not so indicate, or indicates that he did not have such coverage in force, then the tax shall be computed on the return without benefit of the personal exemption set forth in paragraph (b) of Part B of section 3 of chapter 62, or, in the case of a person who files jointly with a spouse, without benefit of one-half of the personal exemption set forth in such paragraph"
That's all talking about losing a tax credit, i.e. it's a tax penalty.