When bad Obama policies collide

By Elizabeth Price Foley and David B. Rivkin Jr. — Tuesday, March 10, 2015

Since its partisan passage in 2010, Obamacare has traversed a rocky road. President Obama has taken numerous executive actions to delay and modify the poorly written law in an effort to ease the political consequences of full implementation and make it work. However, in the president’s zeal to rewrite yet another area of law — immigration — he’s sabotaged one of Obamacare’s primary goals: expanding employer-sponsored health insurance.

The president’s executive actions on immigration — the major one of which is currently on hold due to a court order — confers two specific benefits upon approximately 6 million individuals who have entered this country illegally or overstayed their visas. First, they are completely exempted from deportation. Second, they are granted work permits. These unilaterally conferred benefits are powerful evidence that the president isn’t just exercising executive “discretion” by prioritizing enforcement of existing immigration law — he is rewriting it.

This massive influx of now-lawful workers will predictably reduce job opportunities for U.S. citizens and lawful residents. But beyond this obvious negative impact, granting work permits to these individuals will have a subtler, equally pernicious effect: It will encourage employers to hire these 6 million individuals over U.S. citizens and legal residents. This is due to Obamacare’s structure.

Under Obamacare, employers must pay a tax — called the “employer responsibility” tax — if they either fail to offer insurance altogether, or they offer “substandard” insurance. The employer responsibility tax is hefty, ranging between $2,000 to $3,000 per year, and is payable for every full-time employee who buys health insurance on an exchange and receives a tax subsidy as a result. The idea is to incentivize employers to offer generous insurance coverage, thus keeping workers off the exchanges, and away from tax subsidies. If no full-time worker receives a tax subsidy for buying health insurance, the employer will pay no employer responsibility tax. Read more »

Is Newt Gingrich right about abolishing courts?

(from WSJ.comDecember 20, 2011)

Opinion Journal: Editorial board member Jason Riley interviews David Rivkin

WSJ: I wanted to talk to you about Newt Gingrich’s attacks on the judiciary.  He wants to subpoena judges to appear before Congress and explain their decisions, he wants to shut down entirely some appellate courts, and he says the executive branch should be free to ignore judicial decisions.  What’s your reaction to this rhetoric?

David Rivkin: Not a good one. Strong medicine, but the cure is worse than the disease. Let me say that judicial activism, defined as judges not construing the statutes in the Constitution in accordance with its original meaning, is a real problem.”

It’s been a problem, certainly going back to the 1980s. It was one of the pivotal points of Reagan’s elections in ‘80 and ’84, [and] a standard tenet of all of the Republican candidates. But the  proper cure is slow and steady: appoint good judges, fight to get them through the Senate, and, frankly, wage a public debate about the proper role of judges–delegitimize legislating from the bench.

Read more »