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September 10, 2012 Dear Senator Ron Johnson: On behalf of the millions of members and supporters of our organizations, we are writing to offer our strong support for S. J. Res. 48, your resolution of disapproval of the IRS premium tax credit rule. This rule amounts to an illegitimate backdoor rewrite of the president’s health care law and the imposition of an unauthorized tax on employers of up to $2,000 per worker. We therefore urge all of your colleagues to support S. J. Res. 48. The president’s health care law, the Patient Protection and Affordable Care Act (PPACA), attempted to coerce states into administering its vast new health care entitlement by offering huge subsidies that were contingent on states setting up “exchanges,” new health care bureaucracies. The law’s supporters thought every state would be eager to do it – but many states have chosen not to. Now the IRS is attempting to rewrite the law to force states that lawfully opted out back into the subsidy regime by allowing subsidies to flow through federal exchanges. In the rule the IRS says: “The statutory language of section 36B and other provisions of the Affordable Care Act support the interpretation that credits are available to taxpayers who obtain coverage through a State Exchange, regional Exchange, subsidiary Exchange, and the Federally-facilitated Exchange.” Yet there is no mention of a “federally-facilitated Exchange” anywhere in 36B. In fact, the definition of the new credit under 36B specifically requires enrollment “through an Exchange established by the State under 1311 of the Patient Protection and Affordable Care Act.” Identical language appears in the definition of a “coverage month” later in 36B. Not only does 36B clearly state that eligibility for the subsidy requires enrollment in an exchange “established by the State,” but it also specifically cites section 1311 of PPACA, the section authorizing state exchanges. Section 36B contains absolutely no language authorizing subsidies through federal exchanges, which are created under section 1321 of PPACA. This lawless IRS rule allows PPACA’s vast new health care subsidies to flow in states that lawfully opted out. Because employer penalty taxes only apply to companies with subsidy-eligible employees, the IRS rule literally imposes taxation without representation to the tune of up to $2,000 per worker. It also commits taxpayers to pay for hundreds of billions in subsidy spending that Congress never authorized, and therefore increases the deficit without congressional authorization. If the health care law as written is so flawed that it can’t be implemented, that’s a reason to repeal it, not to empower IRS bureaucrats to secretly rewrite it. Moreover, the precedent set by allowing the IRS to exceed its statutory authority and effectively impose its own taxes would potentially open the door to unlimited future abuses. We therefore commend your efforts to stop this outrageous IRS rule and strongly support S.J. Res. 48. We urge your colleagues to cosponsor the resolution, sign a discharge petition under the Congressional Review Act to force floor consideration, and vote for it on the Senate floor. Thank you for your leadership on this important issue.

James L. Martin, Chairman 60 Plus Association Dan Greenberg, President Advance Arkansas Institute Phil Kerpen, President American Commitment Al Cardenas, Chairman American Conservative Union Christopher Jaarda, President American Healthcare Education Coalition Bill Wilson, President Americans for Limited Government James Valvo, Director of Policy Americans for Prosperity Grover Norquist, President Americans for Tax Reform Andrew F. Quinlan, President Center for Freedom and Prosperity Jeffrey Mazzella, President Center for Individual Freedom Bill Pascoe, Executive Vice President Citizens for the Republic Francis X. De Luca, President Civitas Institute (North Carolina) Chris Chocola, President Club for Growth Tom Brinkman Jr., Chairman COAST (Coalition Opposed to Additional Spending and Taxes - Ohio) Fred Smith, President Competitive Enterprise Institute Penny Nance, President and CEO Concerned Women for America Thomas A. Schatz, President Council for Citizens Against Government Waste Steven J. Duffield, Vice President, Policy Crossroads GPS Kathryn Serkes, Chair Doctor Patient Medical Association Phyllis Schlafly, President Eagle Forum Sandy Rios, Vice President Family Pac Federal Tom McClusky, Sr. Vice President Family Research Council Action Dean Clancy, Legislative Counsel and Vice President, Health Care Policy FreedomWorks Tarren Bragdon, President and CEO Foundation for Government Accountability (Florida) George Landrith, President Frontiers of Freedom Eli M. Gold, President The Harbour League (Maryland) Heather R. Higgins, President and CEO Independent Women’s Voice Andrew Langer, President Institute for Liberty John Hood, President John Locke Foundation (North Carolina) Seton Motley, President Less Government Colin A. Hanna, President Let Freedom Ring Mathew Staver, Founder and Chairman Liberty Counsel J. Scott Moody, Chief Executive Officer The Maine Heritage Policy Center Ali A. Akbar, President National Bloggers Club, Inc. Amy Ridenour, Chairman The National Center for Public Policy Research Pete Sepp, Executive Vice President National Taxpayers Union Tom Zawistowski, President Ohio Liberty Coalition Lawrence A. Hunter, President Social Security Institute David Williams, President Taxpayers Protection Alliance Carl Bearden, Executive Director United for Missouri Eric Novack, Chairman US Health Freedom Coalition Eli Lehrer, President R Street Ken Hoagland, Chairman Restore America's Voice Foundation Amy Kremer Chairman, Tea Party Express John Colyandro, Executive Director Texas Conservative Coalition Research Institute Morton Blackwell, Chairman The Weyrich Lunch

Cc: All U.S. senators