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Texas Files Suit Against Federal Government over Unconstitutional Obamacare Tax

Discussion in 'BBS Hangout: Debate & Discussion' started by KingCheetah, Oct 30, 2015.

  1. KingCheetah

    KingCheetah Contributing Member

    Jun 3, 2002
    Likes Received:

    Texas Files Suit Against Federal Government over Unconstitutional Obamacare Tax

    Texas Attorney General Ken Paxton today announced that Texas has filed suit against the federal government over a regulation forcing states to effectively pay an unconstitutional tax to Washington in order to fund Obamacare. The law coercively threatens to choke off Medicaid funds for the health needs of millions of Texas citizens, including over 350,000 children, unless Texas taxpayers pay hundreds of millions of dollars to pay for Obamacare.

    “This threat to cut Medicaid funding to Texans unless the state continues to pay hundreds of millions in taxes to Washington amounts to the very ‘gun to the head’ the Supreme Court warned about in earlier rulings on Obamacare,” Attorney General Ken Paxton said. “Not only is the federal government threatening the health care needs of millions of Texans, but it is doing so using Texans’ own money, collected from them through taxes. This represents yet another huge overstep of authority for this administration, which once again has demonstrated their willingness to circumvent the Constitution in order to achieve their policy goals.”

    The rule by Centers for Medicare & Medicaid Services allows a private entity, the Actuarial Standards Board, to determine that Medicaid insurance rates must include a Health Insurance Providers Fee, which is functionally an unconstitutional tax on the states in order to fund the insolvent Obamacare mandate. This effectively robs the tax coffers of the citizens of Texas. The unwarranted tax on the citizens of Texas was $84 million in 2013, and around $120 million a year since.

    This tax is unconstitutional for four reasons:

    The U.S. Constitution requires that state officials “clearly understand” what conditions the State is agreeing to when accepting federal funds. Yet, the Obamacare legislation is completely silent as to whether state taxpayers must pony up to pay for Obamacare or risk losing necessary Medicaid and CHIP funds. The federal government contrived this new scheme, and the states were recently required to pay.

    It represents coercion, which the U.S. Supreme Court ruled was not allowed in the first Obamacare decision, NFIB v. Sebelius. In that ruling, the Supreme Court held that threatening a percentage of a state’s budget unless it agreed to expand Medicaid was coercion. This same funding is at risk again if states refuse to pay the tax.

    It delegated the duties of Congress to a private entity, which violates the delegation doctrine prohibiting private entities from exercising legislative authority.

    The new regulation represents a tax on the states, so it violates the constitutional doctrine prohibiting the taxation of a sovereign state.

  2. rockbox

    rockbox Around before clutchcity.com

    Jul 28, 2000
    Likes Received:
    The current ag is an embarrassment
  3. geeimsobored

    geeimsobored Contributing Member

    Aug 20, 2005
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    I didnt think Texas could come up with someone worse than Greg Abbott but now I know that I should never underestimate the Texas voting electorate.
  4. Kim

    Kim Contributing Member

    Feb 17, 1999
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    This one won't go anywhere. The one that calls out the shenanigans used to strip that vet bill or housing bill in the House and refill it with the ACA...that one might have some legs.
  5. mc mark

    mc mark Contributing Member

    Aug 31, 1999
    Likes Received:
    Ken Paxton doesn't give a **** about 350,000 kids or the uninsured in Texas.

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