July 22, 2014, Fairfax, Va.—Americans for Limited Government President Nathan Mehrens today issued the following statement praising the decision of the U.S. Court of Appeals for the District of Columbia in Halbig v. Burwell, finding that Obamacare exchange subsidies cannot be given in states that decided to not set up their own exchanges under an IRS regulation:
“Now, the wisdom of 36 states that have refused to implement state exchanges comes into full view with the D.C. Circuit Court of Appeals’ decision to strike down any Obamacare subsidies given through the federally run exchanges. The law only ever authorized that the subsidies to private insurers—some $800 billion a year—be paid through the state exchanges. By not setting up state exchanges, and with the court’s ruling, the basic premise of Obamacare has been gutted.
“Not only are the subsidies illegal per the court’s ruling, because those subsidies would not be distributed under the decision, the enforceability of both the individual and employer mandates’ tax penalties—which depend on those subsidies—has been kneecapped. Meaning, should the ruling stand, the IRS will have no way of penalizing employers and millions of Americans for failing to purchase health insurance in the 36 states.
“Should this ruling withstand scrutiny all the way through the Supreme Court, it will be the end of Obamacare in those 36 states. It will be such a mess that perhaps the only solution will be for Congress to repeal the law. The 36 state legislatures and governors that refused to implement the exchanges are to be praised—as they may have enabled the nation to dodge the Obamacare bullet.”
“Courts must stop Obamacare’s ‘taxation without representation,’” By Americans for Limited Government President Nathan Mehrens, Nov. 25, 2013 at http://netrightdaily.com/2013/11/courts-must-stop-obamacares-taxation-without-representation/
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