The Biggest Threat to Obamacare Yet is Right Around the Corner: Halbig vs Burwell

obamacare-irs-cartoon

Halbig v. Burwell is based on an illegal action taken by the Internal Revenue Service in 2012

By: C. Steven Tucker  –  Gulag Bound  –  TruthAboutObamacare.com  –  h/t to the NoisyRoom  –  Cross-Posted at THITW 

A case about to be decided by the U.S. Court of Appeals for the D.C. Circuit could stop Obamacare dead in its tracks in 34 states. Halbig v. Burwell is based on an illegal action taken by the Internal Revenue Service in 2012. Below I will outline that illegal action and the two sections of the PPACA (Obamacare) that are relevant in this case.

State-based exchanges and federally facilitated exchanges

Section 1311 of the PPACA describes state-based health insurance exchanges. That section outlines the powers granted to the IRS to provide APTC – “Advance Premium Tax Credits” (a.k.a. ‘subsidies’) that will be used to artificially lower the high cost of health insurance offered in a state-based exchange. Tied to those APTC’s is also the power granted to the IRS to levy a $2,000 or $3,000 excise tax (non-tax deductible) on all employers with 50 or more full-time employees (first 30 employees waived) if they do not provide PPACA approved health insurance. This is a lot of new power granted to the IRS and this is the primary reason the IRS is hiring thousands of new agents.

Section 1321 of the PPACA describes federally-facilitated exchanges and state-federal partnership exchanges – like the exchange the state of Illinois has chosen to establish. In these types of exchanges, the IRS is granted no authority to provide APTC’s or to levy excise taxes on any employer in that state for not providing PPACA approved health insurance. Since the crafters of the PPACA assumed that every state would willingly establish a state-based exchange, there was no money appropriated for federally-facilitated exchanges.

Thus far 34 states have chosen not to open a state-based health insurance exchange. As such federally-facilitated exchanges have been implemented in those states regardless of the wishes of those state’s legislatures.

The illegal action taken by the IRS

Here’s the kicker, in order to ‘fix’ this legal ‘opt out’ that section 1321 provides to states that choose not to open a state-based exchange. The Internal Revenue Service finalized a proposed rule on the 2 year anniversary of the passage of the PPACA that offers APTC’s -Advance Premium Tax Credits – through exchanges “established under section 1311 OR 1321 of the PPACA. Those six characters—”or 1321?—constitute as Cato’s Michael Cannon correctly describes “an unconstitutional and as such illegal rewriting of the statute.” By issuing tax credits where Congress did not authorize them, this rule triggers billions of dollars in taxpayer provided “subsidies” and imposes excise taxes on employers with 50 or more full-time employees in all 50 states. Whether they have a state-based, state-federal partnership or federally facilitated exchange. Since the IRS is not a Legislative branch, this action was illegal. It was not authorized by Congress and as such it should not stand.

Worse yet, President Obama is following this new proposed rule as if it was codified law. This illegal action taken by the IRS and President Obama’s support of it is the crux of the Halbig v. Burwell case. If the U.S. Court of Appeals upholds the rule of law in this case it will mean the end of Obamacare in 34 states. In turn, it may be the final death blow to an unconstitutional and wildy unpopular law.

About Ask Marion

I am a babyboomer and empty nester who savors every moment of my past and believes that it is the responsibility of each of us in my generation and Americans in general to make sure that America is as good or even a better place for future generations as it was for us. So far... we haven't done very well!! Favorite Quotes: "The first 50 years are to build and acquire; the second 50 are to leave your legacy"; "Do something that scares you every day!"; "The journey in between what you once were and who you are becoming is where the dance of life really takes place". At age 62 I find myself fighting inoperable uterine Cancer and thanks to the man upstairs and the prayers from so many people including many of my readers from AskMarion and JustOneMorePet... I'm beating it. After losing our business because of the economy and factors related to the re-election of President Obama in 2012 followed by 16-mos of job hunting, my architect-trained husband is working as a trucker and has only been home approximately 5-days a month since I was diagnosed, which has made everything more difficult and often lonely... plus funds are tight. Our family medical deductible is 12K per year for two of us; thank you ObamaCare. But thanks to donations from so many of you, we are making ends meet as I go through treatment while taking care of my father-in-law who is suffering from late stage Alzheimer's and my mother-in-law who suffers from RA and onset dementia as well as hearing loss, for which there are no caretaker funds, as I continue the fight here online to inform and help restore our amazing country. And finally I need to thank a core group of family, friends, and readers... all at a distance, who check in with me regularly. Plus, I must thank my furkids who have not left my side through this fight. You can see them at JustOneMorePet.
This entry was posted in Alerts, Constitution, Economy and Money, Health and wellness, News and politics, Solutions, Stand Up. Bookmark the permalink.

One Response to The Biggest Threat to Obamacare Yet is Right Around the Corner: Halbig vs Burwell

  1. Pingback: The Wrap at Ask Marion 6.29.14 Thru 7.13.14 – Special Patriotic Season and Call Edition | askmarion

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