"The IRS believes that it has the power to “dispense billions of dollars in federal spending that Congress never authorized,” Michael A. Carvin, a lawyer who is representing challengers of the Obamacare provision, said in court briefs.
An official with the Cato Institute, a libertarian think tank, said the architects of Obamacare likely didn’t expect so many states would decline to establish their own exchanges.
“Congress gave states the power to veto exchange subsidies,” Cato’s Michael Cannon said. “That’s the last thing President Obama wants, so the president decided to issue the subsidies in federal exchanges, even though he only had the authority to issue them for state exchanges.”If the challenge wins, it could mean that the federal government would have to cease dispensing tax subsidies, meaning coverage would be anything but affordable in 34 states."
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