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SCOTUS Hears Oral Arguments on the Future of the Affordable Care Act

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  • The Supreme Court heard another challenge to the Affordable Care Act (ACA) Tuesday, marking the third time the law has gone to the highest court since it was passed a decade ago.
  • The most recent case, filed by Texas and other Republican-led states, focuses on a provision of the law known as the individual mandate, which requires all Americans to have health insurance or face a penalty.
  • The court had previously upheld the mandate as constitutional, arguing it amounted to a tax, but in 2017, Congressional Republicans lowered the penalty to $0.
  • Now, the Republican-led states argue that the mandate can no longer be considered a tax, and thus both the provision and the entire ACA are unconstitutional.
  • Because the Trump administration has not put forward a comprehensive replacement for the ACA, if the justices repeal the law, more than 20 million Americans would lose their health insurance during a pandemic.

Latest ACA Challenge

The Supreme Court heard oral arguments on Tuesday for the latest challenge to the Affordable Care Act (ACA), marking the start of proceedings that will decide the future of essential healthcare benefits for millions of Americans during a pandemic.

The case marks the third time that the ACA, often called Obamacare, has been brought to the highest court since it was signed into law by former President Barack Obama a decade ago. The first two attempts were rejected by the Supreme Court in 2012 and 2015 respectively.

The most recent challenge, brought by Texas and other Republican-led states and backed by the administration of President Donald Trump, centers around a provision of the law known as the individual mandate, which required all Americans to either have some kind of health insurance or pay a penalty.

That specific provision has been one of the most controversial elements of the law, and when it was brought before the justices in 2012, the court upheld the mandate 5-4 on the grounds that it amounted to a tax and thus fell under Congress’ taxing power.

But in 2017, the Republican-held Congress passed a sweeping tax bill that tweaked the individual mandate by setting the penalty for not having health care to $0. Now, the GOP-led states leading this most recent challenge are arguing that because the mandate is zeroed out and no longer raises revenues, it can no longer a tax and thus is unconstitutional.

What’s more — and this is the key part here — they are also claiming that the individual mandate is so ingrained in the ACA that it cannot be separated from the law without scrapping the whole thing. In other words: the Republican states believe that the entire ACA was rendered unconstitutional when the Republicans Congress zeroed out the mandate.

Now, notably, many legal experts do believe the argument that an entire law should be rolled back because one part is problematic is ambitious, to say the least. While some of the courts conservatives have implied that they are hesitant to get rid of the ACA entirely, the makeup of the court is very different now than it was during the other two Obamacare challenges.

Since taking office, Trump has appointed three justices to the Supreme Court, including the newly-seated Amy Coney Barrett, who has openly criticized the court’s previous rulings on the ACA in the past.

Major Consequences 

The stakes for overturning ACA are higher than ever before because of the ongoing coronavirus pandemic that has already infected over 10 million Americans and claimed over 238,000 lives.

The U.S. is currently experiencing the worst of the pandemic, and health officials believe the situation will only become more dangerous soon. Cases and hospitalization rates are rising all across the country, new daily infections and 7-day averages have been hitting record-breaking highs, and experts now say they expect us to hit 200,000 daily cases as soon as next week.

If the justices scrap Obamacare, more than 20 million Americans — including roughly 12 million low-income Americans — would lose their healthcare overnight.

Those people would very likely be left without health insurance for a while because, despite Trump’s repeated claims for the last four years that his healthcare plan to replace Obamacare is almost ready, at least publicly, the president has proposed close to nothing on this front.

Even if it did, the divided Congress would likely have a very difficult time agreeing on any kind of deal. But the fact that there is no comprehensive program to replace Obamacare if the Supreme Court decides to get rid of it would also have other major impacts for even more Americans.

One of the most notable, of course. is how this affects pre-existing conditions. Under Obamacare, health insurers are required to cover most pre-existing conditions. If the ACA is rolled back, insurers can start denying coverage to the estimated 52 million Americans — roughly 1 out of every 4 — who have pre-existing conditions.

That is especially concerning in regards to the pandemic because is very possible that COVID-19 could become a pre-existing condition. With the ACA in place right now, insurers cannot use a coronavirus case to deny someone coverage or charge them more: it is essentially treated the same as a pre-existing condition.

However, if Obamacare no longer protects that, insurance coverage for COVID-19 will be up in the air.

The reversal of the ACA would also have other far-reaching effects, including forcing older Americans to pay more for prescriptions and cutting young adults off their parents’ healthcare plans before the age of 26, as is the law now.

While experts say it is increasingly unlikely that the court will do away with the ACA in its entirety, it is unclear what a partial repeal would impact the law and the American people.

See what others are saying: (NPR) (The Associated Press) (The Washington Post)

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Donald Trump and Eldest Three Children Hit With Fraud Lawsuit From New York AG

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AG Letitia James says that the former president “falsely inflated his net worth by billions of dollars to unjustly enrich himself.” 


Lawsuit Filed Against Trump 

New York Attorney General Letitia James announced on Wednesday that she filed a civil lawsuit against former president Donald Trump and his three eldest children over allegations that they fraudulently inflated asset valuations within the Trump Organization.

Donald Trump Jr., Eric Trump, and Ivanka Trump are all listed alongside their father in the lawsuit. Executives Jeffrey McConney and Allen Weisselberg, the latter of whom recently pled guilty to tax crimes, are also listed alongside other Trump businesses. 

“Donald Trump, with the help of his children…and senior executives at the Trump Organization, falsely inflated his net worth by billions of dollars to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company, to satisfy continuing loan covenants, to induce insurers to provide insurance coverage for higher limits and at lower premiums, and to gain tax benefits, among other things,”  a press release announcing the lawsuit claimed. 

The Attorney General’s office claims that between 2011 and 2021, Trump and the Trump Organization made 200 false and misleading claims about asset values on annual financial statements.

The lawsuit was filed Wednesday in a State Supreme Court in Manhattan. 

“The complaint demonstrates that Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and to cheat the system, thereby cheating all of us,” James said while announcing the complaint. 

Her office is seeking to permanently ban Trump and his children from serving as an officer or director in any New York corporation and to bar Trump and his organization from entering into any New York real estate acquisitions for five years. The office is also seeking to recover $250 million in penalty payments, among other forms of relief. 

 The Office of the Attorney General has also referred the matter to the federal attorneys in New York and to the IRS for criminal investigation. 

“There aren’t two sets of laws for people in this nation: former presidents must be held to the same standards as everyday Americans,” James added in a statement on social media. 

“Trump’s crimes are not victimless,” she continued. “When the well-connected and powerful break the law to get more money than they are entitled to, it reduces resources available to working people, small businesses, and taxpayers.”

Trump Allegedly Inflated Key Assets

According to James’ release, Trump “made known through Mr. Weisselberg that he wanted his net worth on his statements to increase every year.”

“And the statements were the vehicle by which his net worth was fraudulently inflated by billions of dollars year after year,” the release continued. 

Among the assets Trump and his organization allegedly inflated was the Trump Tower Triplex, an apartment Trump allegedly claimed was 30,000 square feet when it is just around 11,000 square feet. Because of its ballooned size, the property was valued at $327 million in 2015, roughly three times as much as the sole apartment in New York City to ever sell for over $100 million at the time. 

For further comparison, the highest sale for a listing in Trump Tower at the time was only $16 million. 

Trump also allegedly claimed Mar-a-Lago was valued as high as $739 million based on the “false premise” that the property could be developed and sold for residential use. The lawsuit claims that Trump actually signed deeds donating those rights, limiting the property’s use to a social club. James and her office claim its value would fall closer to $75 million. 

Inflated Clauations Cannot Be “Excused”

“The inflated asset valuations in the Statements cannot be brushed aside or excused as merely the result of exaggeration or good faith estimation about which reasonable real estate professionals may differ,”  the lawsuit states, adding that instead, they are the result of improper methodology intentionally meant to falsely boost Trump’s net worth. 

The investigation into Trump’s alleged fraud began nearly three years ago, and the former president has repeatedly called it a politically motivated witch hunt. His attorney, Alina Habba, doubled down on that rhetoric in a statement Wednesday. 

“Today’s filing is neither focused on the facts nor the law – rather, it is solely focused on advancing the Attorney General’s political agenda,” Habba said. “We are confident that our judicial system will not stand for this unchecked abuse of authority, and we look forward to defending our client against each and every one of the Attorney General’s meritless claims.”

For his part, Trump has blasted the lawsuit on Truth Social, calling James a “fraud” and a “crime-fighting disaster.”

Trump previously tried to impede the probe but was ultimately ordered by a judge to sit for a deposition and turn over subpoenaed documents. Reports say he pled the fifth hundreds of times during his deposition. 

See what others are saying: (Bloomberg) (The Washington Post) (Reuters)

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Hurricane Fiona Causes “Catastrophic” Damage in Puerto Rico, Leaving Many Without Power

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While power has been restored to some, more than a million remain without it as continued rainfall, flooding, and landslides are expected to cause further damage across the island.


Hurricane Fiona Wreaks Havoc

Hurricane Fiona made landfall in Puerto Rico Sunday, bringing heavy rains, flooding, and landslides, while also knocking out power for the entire island and killing at least one person.

Photos and videos posted on social media show floodwaters consuming major streets and engulfing cars. Some pictures show an entire bridge flooded, making it impassible. Other footage shows a different bridge entirely uprooted and a metal barrier ripped away from the road and floating down a river of floodwater.

Officials have said conditions are still too dangerous to fully evaluate the extent of the crisis. In remarks to the public, Puerto Rico’s governor, Pedro Pierluisi, described the damage as “catastrophic.”

He asserted that the storm has been one of the most significant since Hurricane Maria — which hit the island almost exactly 5 years ago to the day — killing more than 3,000 people, leaving many without power for months, and causing destruction that the island is still recovering from.

Pierluisi noted that Puerto Rico has received over 30 inches of rain and that some areas have even gotten more rain than during Hurricane Maria. As of Monday afternoon, the National Gaurd has led 30 rescue operations so far, saving more than 1,000 stranded residents in 25 municipalities, according to the governor.

Pierluisi also added that more than 2,000 people were in the island’s 128 shelters, with officials further saying there is plenty of shelter space for those who need it. On Sunday, President Joe Biden approved an emergency declaration for Puerto Rico, which will allow federal agencies to coordinate disaster relief.

Continued Issues As Storm Rages On

Meanwhile, Puerto Rico’s water authority has confirmed that just over 70% of the island is still without water. According to poweroutage.us, more than 1.3 million customers were still without power as of Monday morning.

The power company LUMA also stated that electricity had been restored to around 100,000 customers over the course of Sunday night, though it previously warned that the full restoration of power could take several days as the storm has created “incredibly challenging” conditions.

While Hurricane Fiona has passed through Puerto Rico, having now made landfall in the Dominican Republic, officials and experts say that heavy rains and further flooding are still to be expected for the next few days.

The National Weather Service has warned that “life-threatening and catastrophic flooding” as well as mudslides and landslides are expected to continue across the island. As a result, Pierluisi has urged Puerto Ricans Monday to remain home and in shelters so that officials can continue to respond to others in need.

He also noted that the areas most impacted by the hurricane include the southern part of the island, the southwest, and the mountains.

After moving through the Dominican Republic, Hurricane Fiona is expected to head towards Turks and Caicos Tuesday. The National Hurricane Center has said that the storm will continue to grow and by Wednesday, it is set to become a major hurricane — which means a Category 3 or higher.

See what others are saying: (The New York Times) (The Washington Post) (CNN

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Government Aid Cut Child Poverty in Half During Pandemic, Data Shows

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The reduction occurred similarly across geography, race, family type, and citizenship status.


Largest Drop in Half a Century

The United States’s child poverty rate sank to the lowest level on record last year, primarily thanks to pandemic relief measures and other government programs, according to an analysis of census data released Tuesday.

The Center on Budget and Policy Priorities analyzed data from the Census Bureau’s supplementary poverty measure, which accounts for safety net programs and tax credits as well as regional differences in the cost of living.

From around 11% in 2019, the percentage of kids living below the poverty line fell to 9.7% in 2020 and 5.2% the year after that.

In just two years, nearly 5.5 million kids were lifted from poverty, marking an almost 60% drop in the child poverty rate.

The Center’s researchers gave most credit to the federal government’s numerous interventions in the economy, from stimulus payments and the expanded child tax credit to eviction moratoriums and expanded unemployment insurance.

Without government intervention, poverty in 2020 would have experienced its second-largest recorded increase, the Center claimed, but instead, it underwent the largest single-year decline in over half a century.

Especially impactful was the expanded child tax credit, which sent up to $300 per child to households with children every month between July and December 2021.

According to the analysis, this policy alone pulled nearly three million kids out of poverty.

But the tax credit’s expansion expired at the end of the year despite Democrats’ efforts to prolong it with Biden’s signature Build Back Better bill, which was blocked by Sen. Joe Manchin (D-WV), who reportedly told colleagues he was concerned that families might use the payments to buy drugs.

Poverty Before COVID

Child poverty has fallen by 59% since 1993, when it sat at around 28%, according to another analysis published Sunday by The New York Times and the nonpartisan group Child Trends.

They found that the decline occurred across all 50 states and D.C., as well as in different levels of poverty.

It similarly affected nearly all subgroups of children, — white, Black, Asian and Hispanic, single-parent and two-parent, immigrant and non-immigrant.

The causes driving the pre-pandemic decline included general economic improvement — low unemployment, a higher labor force participation rate among single mothers, and growing state minimum wages — but the researchers pinned government welfare programs as the dominant factor.

They specifically mentioned the earned income tax credit, social security, unemployment insurance, and nutrition and housing assistance.

Despite the positive trend, more than eight million children still live below the poverty line, and that number excludes those who live just above it but still struggle to meet basic needs.

The current poverty line sits around $29,000 for a family of four in a location with typical living costs.

Moreover, disparities still persist, with Black and Latino children about three times as likely as their white peers to be poor.

See what others are saying: (Vox) (The New York Times) (The Washington Post)

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