Human Resource Selection 9th Edition by Marianne Jennings

Exercise 20

In March 2010, the attorneys general of 14 states filed suit against the U.S. Department of Health and Human Services in federal district court to challenge the constitutionality of the Patient Protection and Affordable Care Act, signed into law on March 23, 2010. The suit alleges that the Act exceeds the powers of the United States under Article I of the Constitution and violates the Tenth Amendment to the Constitution. In addition, the suit alleges that the tax penalty required under the Act constitutes an unlawful capitation or direct tax, in violation of Article I, Sections 2 and 9 of the Constitution of the United States. The suit also alleges that the Act is an unprecedented encroachment on the sovereignty of the states. Review the provisions of the Constitution cited and the discussion of the powers of the state and federal governments that you studied in this chapter and discuss whether there is a constitutional basis for the suit. Why would businesses be concerned about the new health care law?