IRS Obamacare Rule

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Judge: IRS Obamacare Rule 'Is Arbitrary, Capricious, and Abuse of Discretion' In his decision, U.S. District Judge Ronald White ( George W. Bush, 2003 ) concluded Tuesday that the IRS rule altering the Obamacare law and providing billions in subsidies is "arbitrary, capricious and abuse of discretion": "The court holds that the IRS rule is arbitrary, capricious, and abuse of discretion or otherwise not in accordance with law, pursuant to 5 U.S.C.706(2)(A), in excess of summary jurisdiction, authority or limitation, or short of statutory right, pursuant to 5 U.S.C. 706(2)(C), or otherwise is an invalidation of the ACA [Affordable Care Act], and is hereby vacated. The court's order of vacatur is stayed, however, pending resolution of any appeal from this order." In September 2012, Oklahoma was the first of several states to challenge the legality of an IRS rule that caused billions in subsidies to be paid out, despite Congress having never authorized those payments. Oklahoma Attorney General Scott Pruitt hailed the state's victory in its lawsuit challenging the implementation of the Affordable Care Act: "Today's ruling is a consequential victory for the rule of law. The administration and its bureaucrats in the IRS handed out billions in illegal tax credits and subsidies and vastly expanded the reach of the health care law because they didn't like the way Congress wrote the Affordable Care Act. That's not how our system of government works."

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