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Entries in Federal Courts (3)


CEI - 10am Monday - Obamacare in Federal Court Over Illegitimate IRS Penalties

IRS Attempts to Impose Employer Mandate in States Outside Obamacare Exchanges

WASHINGTON, Oct. 18 –  A federal judge will hear motions Monday on a lawsuit that challenges how the IRS will enforce the Affordable Care Act.

The hearing in Halbig v. Sebelius is to consider a preliminary injunction being sought on behalf of one of the plaintiffs, David Klemensic, who runs a retail flooring business in West Virginia, and a motion by the government to dismiss the case.

Plaintiffs in the lawsuit, in which Competitive Enterprise Institute attorneys are assisting in coordinating, include a group of individuals and small business owners in six states who have sued over an IRS regulation imposed under the auspices of the Affordable Care Act (ACA) that will subject them to a series of penalties and force them to cut back employees’ hours, even though they are located in states that have refused to set up their own insurance exchanges.  The complaint and preliminary injunction filings can be viewed at

The ACA authorizes health insurance subsidies to qualifying individuals in states that created their own healthcare exchanges. These subsidies trigger the employer mandate – a $2,000-per-employee penalty – and expose more people to the individual mandate. But without authorization from Congress, the IRS vastly expanded those subsidies to cover the 34 “refusenik” states that have decided not to set up such exchanges. The ACA plainly says businesses in these nonparticipating states should be free of the employer mandate, and the scope of the individual mandate should be reduced as well. The IRS rule expands both mandates and deprives states of the power given to them by Congress to exempt their residents and businesses from these requirements.

“The Obamacare statute is vast enough as it is,” said Sam Kazman, general counsel for CEI. “The IRS has no right to expand that statute even more to encompass states that have chosen to opt out of the insurance exchange program.”

Mike Carvin, a partner at Jones Day who co-argued NFIB v. Sebelius at the U.S. Supreme Court in 2012, will argue on behalf of plaintiffs in Halbig v. Sebelius this Monday.


CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government.  For more information about CEI, please visit our website,, and blogs, and  Follow CEI on Twitter!


ALG's Daily Grind - The Fed can't print growth 

Jan. 31, 2013

The Fed can't print growth

A printing press is no replacement for real productivity, a lowered cost of doing business, and regulations that welcome company creation.

Preserving the Middle Class:  Who Cares?

A Center for American Progress 35-point plan to "strengthen" the middle class suggests not a thriving, independent linchpin of American prosperity but an homogenized, stagnant and, yes, dependent voting bloc. 

WSJ:Courts? Who Listens to Courts?

"[W]hen a federal court rules the recess appointments [to it] illegal, the NLRB declares that it will keep doing business as if nothing happened."


Pawlenty Statement on Federal Court Ruling on Obamacare

"Today's court ruling correctly affirms that President Obama and the Democratic-controlled Congress's health care takeover violates the U.S. Constitution. An individual health-care mandate is an unconstitutional power grab by the Federal government and drags our health care system in the wrong direction. This ruling is a big victory for states' rights, the U.S. Constitution and market-based health care reform. I was proud to join this federal lawsuit challenging Obamacare's individual mandate and am optimistic that higher courts will uphold the ruling."