Monday, January 26, 2015

Ohio sues over Obamacare taxes on state, local governments

Reuters reports:
The state of Ohio filed a lawsuit on Monday that says Obamacare tax assessments against state and local governments for public employee health plans are unconstitutional.

The suit by Attorney General Mike DeWine involves the federal government's ability under the Affordable Care Act's Transitional Reinsurance Program to levy taxes against health insurance companies and certain employers who offer self-insured group health plans.

The U.S. Department of Health and Human Services (HHS) has said it is assessing this tax on state and local governments for their public employee health plans, DeWine's office said. DeWine said this would destroy the balance of authority between the federal government and the states.

"This action simply protects a tradition as old as our republic that governments do not tax each other," DeWine, a Republican, said in a statement about the lawsuit.
Federalism.