400 Capitol Street, NW
Washington, DC 20001
- Toll Free 1.888.564.6273
- Local 202.783.3870
Forty-six national organizations, fighting to reverse the government takeover of health care, have signed the following letter, urging Republicans at all levels to stand firm against ObamaCare's health care "exchanges" and to take decisive action to resist the recent IRS power grab that threatens to impose exchanges on all 50 states in violation of law.
If you agree we should repeal ObamaCare, SIGN OUR PETITION NOW.
+ + +
46 FREE-MARKET AND CONSERVATIVE GROUPS SUPPORT S.J. RES. 48
September 10, 2012
Dear Senator Ron Johnson:
On behalf of the millions of members and supporters of our organizations, we are writing to offer our strong support for S. J. Res. 48, your resolution of disapproval of the IRS premium tax credit rule.
This rule amounts to an illegitimate backdoor rewrite of the president’s health care law and the imposition of an unauthorized tax on employers of up to $2,000 per worker. We therefore urge all of your colleagues to support S. J. Res. 48.
The president’s health care law, the Patient Protection and Affordable Care Act (PPACA), attempted to coerce states into administering its vast new health care entitlement by offering huge subsidies that were contingent on states setting up “exchanges,” new health care bureaucracies.
The law’s supporters thought every state would be eager to do it – but many states have chosen not to. Now the IRS is attempting to rewrite the law to force states that lawfully opted out back into the subsidy regime by allowing subsidies to flow through federal exchanges.
In the rule the IRS says: “The statutory language of section 36B and other provisions of the Affordable Care Act support the interpretation that credits are available to taxpayers who obtain coverage through a State Exchange, regional Exchange, subsidiary Exchange, and the Federally-facilitated Exchange.”
Yet there is no mention of a “federally-facilitated Exchange” anywhere in 36B. In fact, the definition of the new credit under 36B specifically requires enrollment “through an Exchange established by the State under 1311 of the Patient Protection and Affordable Care Act.” Identical language appears in the definition of a “coverage month” later in 36B.
Not only does 36B clearly state that eligibility for the subsidy requires enrollment in an exchange “established by the State,” but it also specifically cites section 1311 of PPACA, the section authorizing state exchanges. Section 36B contains absolutely no language authorizing subsidies through federal exchanges, which are created under section 1321 of PPACA.
This lawless IRS rule allows PPACA’s vast new health care subsidies to flow in states that lawfully opted out. Because employer penalty taxes only apply to companies with subsidy-eligible employees, the IRS rule literally imposes taxation without representation to the tune of up to $2,000 per worker. It also commits taxpayers to pay for hundreds of billions in subsidy spending that Congress never authorized, and therefore increases the deficit without congressional authorization.
If the health care law as written is so flawed that it can’t be implemented, that’s a reason to repeal it, not to empower IRS bureaucrats to secretly rewrite it.
Moreover, the precedent set by allowing the IRS to exceed its statutory authority and effectively impose its own taxes would potentially open the door to unlimited future abuses.
We therefore commend your efforts to stop this outrageous IRS rule and strongly support S.J. Res. 48. We urge your colleagues to cosponsor the resolution, sign a discharge petition under the Congressional Review Act to force floor
consideration, and vote for it on the Senate floor.
Thank you for your leadership on this important issue.
James L. Martin, Chairman, 60 Plus Association
Dan Greenberg, President, Advance Arkansas Institute
Phil Kerpen, President, American Commitment
Al Cardenas, Chairman, American Conservative Union
Christopher Jaarda, President, American Healthcare Education Coalition
Bill Wilson, President, Americans for Limited Government
James Valvo, Director of Policy, Americans for Prosperity
Grover Norquist, President, Americans for Tax Reform
Andrew F. Quinlan, President, Center for Freedom and Prosperity
Jeffrey Mazzella, President, Center for Individual Freedom
Bill Pascoe, Executive Vice President, Citizens for the Republic
Francis X. De Luca, President, Civitas Institute (North Carolina)
Chris Chocola, President, Club for Growth
Tom Brinkman Jr., Chairman, COAST (Coalition Opposed to Additional Spending and Taxes - Ohio)
Fred Smith, President, Competitive Enterprise Institute
Penny Nance, President and CEO, Concerned Women for America
Thomas A. Schatz, President, Council for Citizens Against Government Waste
Steven J. Duffield, Vice President, Policy Crossroads GPS
Kathryn Serkes, Chair, Doctor Patient Medical Association
Phyllis Schlafly, President, Eagle Forum
Sandy Rios, Vice President, Family Pac Federal
Tom McClusky, Sr. Vice President, Family Research Council Action
Dean Clancy, Legislative Counsel and Vice President, Health Care Policy, FreedomWorks
Tarren Bragdon, President and CEO, Foundation for Government, Accountability (Florida)
George Landrith, President, Frontiers of Freedom
Eli M. Gold, President, The Harbour League (Maryland)
Heather R. Higgins, President and CEO, Independent Women’s Voice
Andrew Langer, President, Institute for Liberty
John Hood, President, John Locke Foundation (North Carolina)
Seton Motley, President, Less Government
Colin A. Hanna, President, Let Freedom Ring
Mathew Staver, Founder and Chairman, Liberty Counsel
J. Scott Moody, Chief Executive Officer, The Maine Heritage Policy Center
Ali A. Akbar, President, National Bloggers Club, Inc.
Amy Ridenour, Chairman, The National Center for Public Policy Research
Pete Sepp, Executive Vice President, National Taxpayers Union
Tom Zawistowski, President, Ohio Liberty Coalition
Lawrence A. Hunter, President, Social Security Institute
David Williams, President, Taxpayers Protection Alliance
Carl Bearden, Executive Director, United for Missouri
Eric Novack, Chairman, US Health Freedom Coalition
Eli Lehrer, President, R Street
Ken Hoagland, Chairman, Restore America's Voice Foundation
Amy Kremer, Chairman, Tea Party Express
John Colyandro, Executive Director, Texas Conservative Coalition Research Institute
Morton Blackwell, Chairman, The Weyrich Lunch
Cc: All U.S. senators
+ + +
TAKE ACTION: If you agree we should repeal ObamaCare, SIGN OUR PETITION NOW.
Dean Clancy is FreedomWorks' Legislative Counsel and Vice President, Health Care Policy. He leads our efforts to reverse the government takeover of health care and replace it with a patient-centered system.