New and serious allegations of the federal government violating constitutional protections that prevent forced taxation on the states, as is happening by the implementation of the Affordable Care Act, was introduced by three states. More states may be joining. This case has to wind through the lower courts before reaching the Supreme Court. Read article by Hans von Spakovsky in Daily Signal.

1.  New lawsuit challenges Obamacare

2. Federal government imposing tax on states

Via Texas, Kansas, and Louisiana are about to file a new lawsuit against Obamacare, claiming that a fee being imposed by the IRS as a condition of states continuing to receive Medicaid funds is both unconstitutional and a violation of federal law.

It is important to note that this lawsuit is not over the Medicaid expansion that was part of the Obamacare law and that states like Texas refused to accept. This is about a fee that the Obama administration, through the IRS, is now imposing on states as a condition of continuing to receive federal funds for the basic Medicaid and CHIP programs.

The states claim that this violates several principles. First of all, allowing the Actuarial Standards Board to impose this fee on the states violates the basic constitutional principle, upheld in a number of cases, that “Federal lawmakers cannot delegate regulatory authority to a private entity.”

Second, there is nothing in the text of the Obamacare law that allows the federal government to collect this fee from the states, violating the constitutional requirement of “clear notice.”

Third, the states cite to the NFIB v. Sibelius decision, where the Supreme Court held that the federal government could not force the states to accept expanded Medicaid coverage as a condition of receiving any Medicaid funding. Thus, the states claim the provider fee unconstitutionally coerces the sovereign states.

The states also have inserted a Tenth Amendment claim into the lawsuit. They argue that the fee is “an unconstitutional tax on the Plaintiff States in violation of the Tenth Amendment of the United States Constitution and the doctrine of intergovernmental tax immunity.”

In other words, in our federalist system, the federal government has no right to tax state governments.

There is no question that this is a serious lawsuit raising substantive issues against the Obamacare law and the way it has been implemented in relation to Medicaid and other federal health insurance programs. Via


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