Media Center
A federal judge for the United States District Court for the Eastern District of Oklahoma ruled today that ObamaCare tax subsidies cannot go to residents of states with a federally-run insurance exchange rather than a state-run exchange. Judge Ronald White wrote, "The court holds that the IRS Rule is arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law."
“This issue goes to the very heart of our constitutional separation of powers,” said Representative DesJarlais. “Congress has the sole authority to enact legislation. Regardless of the differing views on ObamaCare, we should all be able to agree that the IRS’s blatant power grab sets a troubling precedent and must not be allowed to stand. I would hope that my Democratic colleagues would be appalled at the idea of an omnipotent executive branch with the power to both create and enforce laws. Today’s ruling affirms the Democratic process and very foundation of our republic.”
In July, a three-judge panel of the D.C. Circuit Court of Appeals also ruled that the ObamaCare subsidies and tax penalties only apply to state-run exchanges.
In 2012 Representative DesJarlais introduced legislation that would prevent the enactment of the IRS rule allowing subsidies and penalties to apply to both state-run and federally-run exchange.