Kkdoq6ejtoq9xs0cnqas

David Kurtz

David Kurtz is Managing Editor and Washington Bureau Chief of Talking Points Memo where he oversees the news operations of TPM and its sister sites.

Articles by David

This is happening quick. After the DC Circuit invalidated Obamacare's tax credits for the federal exchanges earlier this morning, the 4th Circuit Court of Appeals just issued a similar ruling upholding those same tax credits.

This conflict between two circuit courts increases the chances of the Supreme Court taking that case to resolve this once and for all, though both cases could end up being reviewed en banc by all the judges on each circuit first.

Today's court ruling gutting the essential tax credits offered under Obamacare relies on a literal reading of one provision of the Affordable Care Act. It seems almost certain that the provision in question suffered from a drafting error.

As we reported earlier this year, those who were in the room as the bill was being written say it was never anyone's intention to limit the tax credits to state-run exchanges. In fact there's no compelling rationale for why Congress would have sought to treat the two exchanges differently for tax purposes. The provision was just drafted poorly.

In ordinary circumstances, Congress would just fix the error. But these are not ordinary times.

Federal appeals court invalidates tax credit for insurance purchased on federal Obamacare exchanges.

To catch you up, at issue was whether the federal government could provide tax credits to people who purchased insurance on the exchanges set up by the federal government. Remember that as originally conceived Obamacare allowed each state to create its own exchange. This was a concession to conservatives and to states, a way to build consensus for the legislation. But as opposition to Obamacare became a Republican rallying cry and a litmus test for conservative credentials, many red states opted not to create their own exchanges. In fact a majority of states opted to rely on the federal exchanges instead.

Read More →

Bloomberg (emphasis added): "Hillary Clinton has earned at least $12 million in 16 months since leaving the State Department, a windfall at odds with her party’s call to shrink the gap between the rich and the poor."

TPMLivewire