Obamacare versus the rule of law

Across the country, states are deciding whether to create exchanges under Obamacare. If they don’t, the federal government will create them. Still it matters a lot whether the exchanges are created by the state or the federal government.

According to the Obamacare statute, the federal government can offer credits and impose taxes and penalties only in states that create exchanges. If those provisions are enforced, Obamacare will be substantially crippled in non-participating states.

Of course, the Obama administration is arguing that those provisions of their own law not be enforced, and the IRS is going ahead under the assumption they will not. Will they get away with it?

UPDATE: I should mention, lest anyone take too much comfort from this, that the Obamacare provisions that will ruin American health care (i.e., community rating and guaranteed issue) are not in jeopardy, as far as I know.

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