site banner

Small-Scale Question Sunday for April 23, 2023

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

2
Jump in the discussion.

No email address required.

What’s up with Tyler v. Hennepin County?

Next week, SCOTUS is hearing a case from Minnesota. The county foreclosed on a home with $15,000 in tax debt. It made $40,000 from the sale and kept all of it as a windfall in accordance with state law. The 94-year-old owner sued on takings clause (and due process, and 8th amendment) grounds.

The district court dismissed all claims. The circuit court affirmed. What gives?

It feels like there should be protections against the state profiting off the difference from tax debt and market value. Is this just one of those situations where it turns out there are no rights? Am I missing something?

Home seizure is one of the canonical examples for illustrating "substantive due process" versus "procedural due process." This is (and probably always will be) a pretty hotly contested bit of American jurisprudence; procedural due process is "was the procedure followed" while substantive due process is more about law-in-equity, i.e. "was justice truly done." If your city or state craft ordinances that, through totally procedurally sound action, works a clear injustice, it's not usually all that difficult to get people to agree that something has gone awry. Based on the Court's posture toward asset forfeiture in Timbs v. Indiana (they decided it violated the Eighth Amendment as excessive), I would not be at all surprised to see Hennepin County definitively lose this case.

However, the main question in my mind is that this is a "tax" case, rather than a "fines" case, and Chief Justice Roberts famously saved Obamacare by giving "tax" status to something that essentially no one thought of as a "tax." Remember that without the Sixteenth Amendment, income tax was clearly an unconstitutional taking. (Personally, I'm very comfortable with the proposition that the Sixteenth Amendment was deeply immoral, and that most taxation is indeed simply theft, but at least it is a kind of theft that was given special exemption in the Constitution.) Strictly speaking, so long as they aren't violating any state laws on the matter, a U.S. county has the power to levy as much property tax against your property as they wish, which could have the practical effect of confiscating anyone and everyone's property for government use (by setting the tax well above the value of the property).

I would hope that, in such a case, the courts would quickly call out the tax as a pretext to seizure and thus declare that it falls afoul of the Fifth Amendment! But courts are remarkably skittish in every case that tends to expose the fact that all taxes are inescapably coercive and confiscatory, with thin justification.

essentially no one thought of as a "tax."

Wait, what? Who thought that? My sense is that everyone knew it was a tax, but that label had been avoided by proponents of the bill.

It sure felt a lot like a tax, given that it was a box to check or uncheck when filing a federal tax return which changed the amount of the check one had to write to the treasury.

I never thought of it as a tax. It was pretty obviously (to me) a punitive fine designed to force you to purchase health insurance.

The government started giving a bunch of money to companies, and telling individuals they must do the same; I didn't give any money to any companies so the IRS made me give them money instead. Questions to determine the amount I had to pay were based on things like AGI, part of my tax calculation, and the resulting amounts were entered back into my tax calculation. If I increased my withholding, I had to write less of a check in April--but I only ever wrote one check, to the same people I'd always written checks to when paying my taxes.

Is there any other thing where one can be "fined" or punished for doing nothing? Aren't negative consequences usually to deter behavior, not compel it?

Is there any other thing where one can be "fined" or punished for doing nothing?

Of course there are. If you don't pay a parking ticket in time, you owe an additional fine. If you don't return a library book on time, you owe a fine to the library. And so on. It's perfectly possible (and common) to use negative consequences to compel behavior.

But in those cases, I've parked somewhere, or broken my contract with the library--there is a punishable action.

No, there is a lack of action you were supposed to take. It's the same thing as the Obamacare fine.

Your examples are actions one is duty-bound to take by the terms of the contract that was entered into, by parking in the spot or by checking out the book. Don't you see the difference?

"Breaking a contract" is an "action", and in either of these cases is directly comparable to petty theft of the equivalent funds--the library has a loss of the use of its book, or the city has loss of its parking space (or remuneration therefor). Someone who never did anything but sit at home, and consequently never used the streets or the library, would never be subject to those fines.

More comments