Nor, says Cato's Michael Cannon, with misrepresentation of the legislation we actually have
, So the House Committee on Oversight and Government Reform has subpoenaed documents their investigators have seen at IRS and Treasury;
The federal government has established Exchanges within those states [that declined to set up their own],
but the PPACA says the government can implement the law’s Exchange
subsidies, employer mandate, and (to a large extent) its individual
mandate only “through an Exchange established by the State.”
Nevertheless, the IRS issued a regulation implementing those taxes and
expenditures in states with federal Exchanges anyway. That regulation
that is being challenged as illegal by taxpayers, employers, school
districts, and states, who claim the IRS is taxing them without
The subpoenaed documents could have a big impact on those cases [Halbig and King]....
the Treasury Department and the IRS have refused to make the subpoenaed
documents public. ....
According to the investigators’ account of those documents and interviews, in March 2011, IRS officials read a news article
about how ObamaCare opponents were considering a constitutional
challenge based on the fact that the PPACA offers subsidies only in
states that establish Exchanges. Up until that point, the IRS’s draft
regulations included the statutory requirement that subsidy recipients
enroll in coverage through an Exchange “established by the State.” (The
employer and individual mandates are tied to the availability of the
subsidies.) That statutory requirement disappeared from the draft
regulations at the same time IRS officials learned that opponents might
challenge that feature of the law in court.
Our bold in the above.
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