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ALG thanks Governor Perry for not implementing Obamacare exchange




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November 13, 2012 | 1554 views | Post a comment

Nov. 13, 2012, Fairfax, VA--Americans for Limited Government President Bill Wilson today thanked Governor Rick Perry for not implementing a state-run health insurance exchange under Obamacare.

In his letter, Wilson wrote that the governor “has wisely refused to enact a state Health Insurance Exchange, and in doing so has chosen to protect your job creators from being ravaged by penalties and other costs under the law.”

“Your refusal to create the exchange spares your employers these costs, and allows them to enjoy a competitive advantage over those which have state exchanges,” Wilson wrote.

The letter references a study by the Cato Institute’s Jonathan Adler and Michael Cannon, “Taxation without representation: The illegal IRS rule to expand tax credits under the PPACA.”

In it, Adler and Cannon make the case that “An Internal Revenue Service (IRS) rule purports to extend these tax credits and subsidies to the purchase of health insurance in federal exchanges created in states without exchanges of their own. This rule lacks statutory authority.”

The study explains, “The text, structure, and history of the Act show that tax credits and subsidies are not available in federally run exchanges. The IRS rule is contrary to congressional intent and cannot be justified on other legal grounds.”

By not implementing the exchange, the state would effectively give affected employers the standing to sue against the new IRS rule, Wilson said in a statement.

“Without the state-run exchange, Governor Perry has given employers a fighting chance of against Obamacare. With Perry’s help, this law will not stand,” Wilson concluded.

Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please call us at 703-383-0880 or visit our website at www.GetLiberty.org.
 
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