Department of Health and Human Servs. v. Florida (11-398-Monday)
argument 11-398-MondayDepartment of Health and Human Servs. v. Florida
Supreme Court of the United States
1h 28m
7 speakers
8 chapters
transcribed 7 days ago
official recording ↗
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the Anti‑Injunction Act and why does it matter in this case?
We will hear argument this morning in case number eleven three nine eight. Department of Health and Human Services versus Florida. Mr Long?
Mr Chief Justice, and may it please the Court. The Anti Injunction Act imposes a pay first, litigate later rule that is central to federal tax assessment and collection. The Act applies to essentially every tax penalty in the Internal Revenue Code. There is no reason to think that Congress made a special exception for the penalty imposed by Section five thousand A. On the contrary. There are three reasons to conclude that the Anti Injunction Act applies here. First Congress directed that the Section five thousand A penalty shall be assessed and collected in the same manner as taxes. Second. Congress provided that penalties are included in taxes for assessment purposes. And third, the section five thousand A penalty bears the key indicia of attacks.
Con Congress directed that the Section five thousand A penalty shall be assessed and collected in the same manner as taxes. That directive triggers the Anti Injunction Act, which provides that no suit for the purpose of restraining the assessment or collection of any tax may be maintained in any court by any person. Well it
depends as uh as the government uh points out on whether that directive is a directive to the Secretary uh of the Treasury as to how He goes about getting this penalty. or rather a directive to him and to the courts. Um all all of the other directives there seem to me to be addressed to the secretary. Why why should this one be directed to the courts. When you say in the same manner He goes about doing it in the same manner. But the courts simply uh accept uh That uh that manner of proceeding, but nonetheless uh adjudicate the cases.
Well, I think I have a three part answer to that, Justice Scalia. First the text does not say that the Secretary shall assess and collect taxes in the same manner. It just says uh that it shall be assessed in the same manner as a tax, without addressing any party particularly
assessing and collecting it in the same manner as a tax.
Well the the assessment the the other two parts of the answer are as a practical matter. I don't think there's any dispute in this case that if the anti injunction act Does not apply. This penalty, the Section five thousand A penalty, will as a practical matter be assessed and collected in a very different manner from other taxes and other tax penalties. There there are three main differences. First, uh when the anti injunction act applies you have to pay the tax or the penalty first and then litigate later to get it back with interest. Uh second Uh you have to exhaust administrative remedies. Even after you pay the tax, you can't immediately go to court. You have to go to the secretary and give the secretary at least six months to see if the matter can be resolved administratively.
And third, even in the very carefully defined situations in which Congress has permitted a challenge to a tax or a penalty before it's paid. The secretary has to make the first move. The taxpayer is never allowed to rush into court before the tax before the secretary sends a notice of deficiency to start the проце If the anti injunction act does not apply here None of those rules apply. And that's not just for this case, it will be for every challenge to a section section five thousand A penalty going forward. The the taxpayer will be able to go to court At any time. Without exhausting administrative remedies, there will be none of the limitations that apply in terms of you have to wait for the Secretary to make
the why why will the administrative remedies rule not be applicable?
Well, because if the Anti Injunction Act doesn't apply, there's there's no prohibition on courts restraining the assessment or collection of this penalty, and you can simply
Well, but courts apply the exhaustion rule. I mean I I know you have studied this, I I'm just not following it. Why why couldn't the court appli uh say we have an exhausted your remedies, no injunction?
Well in y you could do that, I think, as a matter of of common law or a judicially imp imposed doctrine, but in the code itself
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Chapters
8 chapters
1
What is the Anti‑Injunction Act and why does it matter in this case?
0:01–11:52
2
How does the government argue that the ACA penalty is a tax for AIA purposes?
11:52–23:51
3
Why do the parties claim the AIA is not jurisdictional but a claim‑processing rule?
23:51–34:38
4
What precedents (Davis, Williams Packing, Bob Jones) are cited to interpret the AIA?
34:38–46:41
5
How do the Justices question the distinction between a penalty and a tax?
46:41–59:11
6
What are the arguments about standing for individuals, states, and Medicaid?
59:11–1:11:08
7
Why might the Solicitor General’s waiver strategy affect the AIA analysis?
1:11:08–1:23:18
8
What conclusions do the parties reach about the applicability of the AIA to the ACA mandate?
1:23:18–1:29:18