The IRS Illegally Expands ObamaCare Tax Credits
American Spectator – David Catron – 7/23/2012
There is, however, one weakness inherent in this strategy. It assumes that the Obama administration will obey the law. The plan will be difficult to implement if the President and his accomplices simply ignore the text of PPACA and illegally funnel tax credits and subsidies through federally-created exchanges. The past three years have certainly provided plenty of evidence that these people would not reject this course of action merely because it violates the law. It should, therefore, come as no surprise that it is precisely what they have decided to do. The IRS recently finalized a regulation that makes clear the administration's intention to provide premium assistance through federal as well as state-based exchanges.
Can anything be done about this? According to Adler and Cannon, the IRS rule is blatantly illegal and will cause real harm, particularly to businesses: "Because the granting of tax credits can trigger the imposition of fines on employers, the IRS rule is likely to be challenged in court."