As I have reported previously, the IRS is attempting to issue health insurance subsidies through ObamaCare “exchanges” in all states, even though the statute explicitly restricts those subsidies to states that establish their own Exchanges and does not allow subsidies in the 34 states with Exchanges established by the federal government. Since those subsidies trigger penalties under both the individual and employer mandates, the IRS’s illegal subsidies will result in illegal taxes. In all, we’re talking somewhere north of $700 billion of unauthorized taxes, borrowing, and spending over 10 years.
Four Virginia residents who believe they will be hit by the IRS’s illegal taxes have filed King v. Sebelius in the federal district court for the Eastern District of Virginia. This morning in Richmond, federal district judge James Spencer heard oral arguments on the plaintiffs’ motion for a preliminary injunction that would block the IRS rule that attempts to offer unauthorized subsidies through federal Exchanges. Spencer denied the motion, but indicated that the case would proceed to the merits, with all briefs to be filed by December 6. That makes King v. Sebelius the third challenge to the IRS’s illegal taxes that will reach the merits. The first two are Pruitt v. Sebelius and Halbig v. Sebelius. As in Halbig, it appears possible we could get a ruling in King before the first of the year.