Lake Erie Conservative

thoughtful discussion(s) about issue(s)

… God Bless You , Scott Pruitt …

Posted by paulfromwloh on Friday,June 7th,2013

.. ObamaCrapCare [O.C.C.] is an amazingly bureaucratic , colossally overpriced , fraudulently sold piece of legislative junk . It will cost a ton of money to deal with it . Oklahoma attorney general Scott Pruitt has found a rather unique way to do it : call a halt to the Obamacare project : Hold the federal government to the letter of that misbegotten law . His fight is a lonely one : While a majority of states signed on to the 2010 lawsuit opposing Obamacare on constitutional grounds, Oklahoma is standing largely alone today.

.. Oklahoma should not be by itself . The Pruitt v HHS [tax credits] Amended Complaint (File Stamped) seeks to spend tax dollars and levy taxes without authorization from Congress . It speaks to a fundamental issue. Simply put, the executive cannot will into being a tax that Congress has not created through legislation because it suits the president and his party to do so.

.. OCC contains an assortment of carrots and sticks , namely the subsidies and the mandates . The important ones here are the employer taxes . They are triggered when employees use the tax credit, and in some cases the individual taxes are triggered when the credit is available to them .

.. The thing is , the tax credits apply ONLY to those using exchanges created by the states. The federal government can create its own exchanges within states ; however, it has no authority under the law to use them to offer subsidies and inflict the accompanying taxes.

.. With all of the political and legal fightback , there have been unforseen consequences . The Supreme Court decision in NFIB v Sebelius gave the states the option to opt out of the expansion of Medicaid . That would put the added load of new enrollees on the feds (ha!ha!) . There was an unforeseen development — states have refused to create those exchanges , Oklahoma among them . If a state ‘ s  residents are not eligible for exchange subsidies , then its employers are not subject to the associated punitive tax .

.. This was not a drafting error in the OCC bill . It was done intentionally . The drafters figured the states would eventually be forced to go along with the exchanges , like it or not , because of the Medicaid expansion . The Supreme Court decision has given the states an out . Whoops . The next boo – boo was from a little – known , but now famous research paper . It was written by Professor Jonathan Adler (of Case – Western Reserve University , in Cleveland , Ohio) and his friend Micheal F. Cannon , a resident scholar at the CATO Institute . They caught the loophole that the drafters left , intentionally , in the legislation . The law is explicitly written to deny subsidies to states that refuse to create exchanges .

.. The president and congressional Democrats ended up making a colossal blunder , especially from the Adler – Cannon paper . It gave the states an opening that nobody realized was there . They found it . The ObamaCraps simply failed to anticipate that the majority of states would refuse to create exchanges.

.. The federales are acting beyond the scope of the legislation by offering the subsidies in states that have not set up exchanges . They have no legal or constitutional authority to do so . They are inflicting tax penalties on individuals and employers that go beyond even what Obamacare allows . But the ObamaCraps , demonstrating their habitually cavalier disregard for the rule of law , is proceeding as though it has  the legal right to offer subsidies and impose penalties in states that have refused to create exchanges . That the law does not give the administration that right apparently is of little concern at the ObamCrap White House .

.. One would think , right now , a fight back against the OC ‘ s illegal use of the IRS to punish those who refuse to go along with the O.C.C. agenda would produce a very full political bandwagon . Yet , there are Republican governors who have pronounced themselves opposed to OCC , and yet have knuckled under to the expansion of Medicaid . Stopping the IRS from imposing taxes where it has no legal power to do so should in fact be a popular issue , regardless of one ‘ s opinions about OCC itself . Scott Pruitt is fighting for the rule of law , and Republican governors might trouble themselves to give him a hand .

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