The Pacific Research Institute and the Cato Institute File Amicus Brief Against Extending Tax Subsidies to Purchasers of Insurance in Federal Exchanges (HealthCare.gov)


The Pacific Research Institute and the Cato Institute File Amicus Brief Against Extending Tax Subsidies to Purchasers of Insurance in Federal Exchanges (HealthCare.gov)

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February 18, 2014 – The Pacific Research Institute and the Cato Institute issued the following statements after filing an amicus brief in the U.S. Court of Appeals for the D.C. Circuit in support of the challenge to the IRS decision to extend tax subsidies to those purchasing insurance through the federal exchanges which were not included in the Affordable Care Act.

Sally C. Pipes, President and CEO of the Pacific Research Institute, said, “Our brief makes clear that this is a simple case of fundamental principle: neither a federal court nor an executive agency can override a law’s plain meaning. The ACA clearly states that only individuals purchasing insurance through ‘state’ exchanges are eligible for tax subsidies. Yet the IRS and the District Court rejected this plain reading in favor of an interpretation extending subsidies to those purchasing insurance through federal exchanges.  Neither the IRS nor the courts have the authority to rewrite a statute to correct their view of perceived legislative purpose.  Doing so might be expedient in the short-term, but it would cause long-term institutional damage.  The executive and courts are bound by the plain meaning of the statute that Congress passed and the President signed.  After all, we are a ‘government of laws, and not of men.’”

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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