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Jonathan Adler and I have a paper titled, “Taxation Without Representation: The Illegal IRS Rule to Expand Tax Credits Under the PPACA.” Our central claims are:
- The Patient Protection and Affordable Care Act explicitly restricts its “premium-assistance tax credits” (and thus the “cost-sharing subsidies” and employer- and individual-mandate penalties those tax credits trigger) to health insurance “exchanges” established by states;
- The IRS has no authority to offer those entitlements or impose those taxes in states that opt not to create Exchanges; and
- The IRS’s ongoing attempt to impose those taxes and issue those entitlements through Exchanges established by the...










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