TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Friday, May 3, 2013

Small Business Owners Sue IRS Over ObamaCare

Blog of the Legal Times:  Small Business Owners Sue IRS Over Obamacare:

Objecting to what they term an "Obamacare power grab," a group of small business owners and individuals in six states filed suit today against the IRS over a rule that expands health insurance subsidies.

The plaintiffs say the IRS regulations "actually serve to financially injure and restrict [their] economic choices" and are arbitrary and capricious, according to the complaint filed in U.S. District Court for the District of Columbia by Jones Day partner Michael Carvin, who co-argued the U.S. Supreme Court cases challenging the Affordable Care Act in March 2012.

The suit against the IRS focuses on health care exchanges - state-level clearinghouses that are supposed to make it easier for people to buy insurance. The federal government doesn’t have the power to force states to set up such exchanges, but the law provides incentives for them to do so.

https://taxprof.typepad.com/taxprof_blog/2013/05/small.html

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Comments

This lawsuit is serious, and it's not about whether Obamacare is good or bad--- it's about the law. The government loses on plain language and legislative intent. Its only hope is the "Well, we didn't expect the states to ignore our threats and lose the subsidies" argument, which no principled court would accept.

Posted by: Eric Rasmusen | May 3, 2013 9:32:18 AM

The Supreme Court rewrote the law once. It will do so again. And again. As many times as necessary to avoid taking the blame for its demise.

At least 5 Justices believe that their decisions should be based on results. You can always torture legal reasoning until it confesses to the desired result.

This lawsuit will fail.

Posted by: AMTbuff | May 3, 2013 12:59:36 PM

We will see different contracts for employees - only 20 hours or less in a week and you have eliminated Obamacare.

Posted by: gmathol | May 3, 2013 2:52:28 PM

Obamacare should be thrown out simply on the premise that it is discriminatory in the sense that some businesses are getting a free pass in that they are exempt from being required to purchase it.

Posted by: WTH | May 4, 2013 2:05:35 AM

OBAMACARE should increase outsourcing in Central America. Enacted in July 2010, The U.S. healthcare reform (“Obama Care” or the “Patient Protection and Affordable Care Act”) is intended to pressure large and small employers through force and taxation. The end result will show North American companies deciding to send customer support, sales, lead generation and appointment setting jobs offshore to stay competitive or risk going out of business. Many business owners will hire a dedicated bilingual employee nearshore who is 100% committed to their project. ESL call center employees in Costa Rica are just as or more effective than transitional in-house staff for half of the cost. Finally, giving small to medium sized companies the freedom to scale up their BPO staff without getting caught in the Obamacare challenge in 2014.

http://www.obamacareoutsourcing.com/

Posted by: Costa Rica's Call Center | May 8, 2013 6:09:51 PM