Your money or your life: Obamacare is the next IRS scandal

If there’s one government agency that consistently elicits a visceral reaction in the heart and gut of every American, it is the Internal Revenue Service (IRS). And if there’s one agency in the Obama administration under severe fire for partisan actions — I know y’all were going to say Eric Holder’s Department of Justice (DoJ), but – it’s the IRS, the chosen tool to hammer Americans. Or at least the political opposition to the Obama administration.

And as I kept saying, Obamacare authorized the hiring of 16,000 more IRS agents since it’s nothing more than a tax law — 20 new ones to be exact – including the infamous individual mandate. In fact, it had to be ruled a tax by the Supreme Court in order to be deemed constitutional.

The IRS is a political weapon, Obamacare is a barely legal mess, and we’re supposed to believe the IRS can run it?

As the Wall Street Journal’s Kim Strassel points out, “One of the big questions out of the IRS targeting scandal is this: How can an agency that engaged in such political misconduct be trusted to implement Obamacare? This week’s Halbig v. Burwell ruling reminded us of the answer. It can’t. The D.C. Circuit Court of Appeals ruled in Halbig that the administration had illegally provided Obamacare subsidies in 36 insurance exchanges run by the federal government. Yet it wasn’t the “administration” as a whole that issued the lawless subsidy gift. It was the administration acting through its new, favorite enforcer: the IRS.”

Of course Obama administration apologists will retort that a separate court in Richmond, Virginia ruled in favor of the administration –gee, I wonder how that came about? Regardless, it leaves a trail of confusion.

Our very simple system of governance — separation of powers, coequal branches of government, and checks and balances — lays out that legislation is passed between the two bodies comprising the legislative branch, House of Representatives and the Senate. Once passed, the legislation goes to the Executive branch for signature, or the Executive branch can veto the legislation and send it back to the legislative branch with comment. However, once signed the legislation is law and must be upheld by the Executive branch – or at least, it’s supposed to be. And when there are questions about law, it is supposed to be adjudicated by the Judicial branch to interpret the new law against the standard of legal precedence and our rule of law, the U.S. Constitution.

However, what has happened with Obamacare is that agencies within the Executive branch are making rules, mandates and creating demands on the American people, none of which has gone through the legislative process. It is rule-making by regulatory fiat. And this is what happened in the case of the Obamacare subsidies, as argued in the Halbig trial.

As Strassel illuminates, “Democrats needed those subsidies. The party had assumed that dangling subsidies before the states would induce them to set up exchanges. When dozens instead refused, the White House was faced with the prospect that citizens in 36 states—two-thirds of the country—would be exposed to the full cost of Obamacare’s overpriced insurance. The White House viewed it as imperative, therefore, that IRS bureaucrats ignore the law’s text and come up with a politically helpful rule. The evidence shows that career officials at the IRS did indeed do as Treasury Department and Health and Human Services Department officials told them. This, despite the fact that the IRS is supposed to be insulated from political meddling.”

So the most threatening government agency, the IRS (because it can go after your personal finances), was politically manipulated for the benefit of the Obama administration, the executive branch. Americans had absolutely no say in this rule being made – as a matter of fact, I’d bet most people don’t have a clue about this case. Of course the administration found a different court in Richmond to rule in its favor saying that the IRS was allowed to do exactly what they did — make up a political rule with language supporting the intentions of the executive branch.

Strassel says, “we know this thanks to a largely overlooked joint investigation and February report by the House Oversight and Ways and Means committees into the history of the IRS subsidy rule. We know that in the late summer of 2010, after Obamacare was signed into law, the IRS assembled a working group—made up of career IRS and Treasury employees—to develop regulations around Obamacare subsidies. An early draft of its rule about subsidies explained that they were for “Exchanges established by the State.” At some point between March 10 and March 15, 2011, the reference to “Exchanges established by the State” disappeared from the draft rule. Emails viewed by congressional investigators nonetheless showed that Treasury and the IRS remained worried they were breaking the law.”

Strassel concludes, “the IRS (famed for nitpicking and prosecuting the tax law), chose to authorize hundreds of billions of illegal subsidies without having performed a smidgen of legal due diligence, and did so at the direction of political taskmasters. The agency’s actions provided aid and comfort to elected Democrats, even as it disenfranchised millions of Americans who voted in their states to reject state-run exchanges. And Treasury knows how ugly this looks, which is why it initially stonewalled Congress in its investigation—at first refusing to give documents to investigators, and redacting large portions of the information.”

What I hope you’ll glean from all of this is the most feared government agency, which can harass, fine, collect, and imprison you, has become the bludgeoning tool of a single political party — and it ain’t the GOP.


  1. We need to focus less on the SYMPTOMS of Washington’s incompetence and focus more on the CAUSES of their incompetence.

    Fix the foundation and the rest will right itself. The foundation of our gov’t has been broken since 1913. And this faulty foundation has resulted in laws for every conceivable thing and an enormous debt to boot.

    Here are the cracks in our foundation:
    1) The Federal Gov’t is in charge
    2) The Federal Gov’t taxes individuals (therefore, companies)

    Here’s how #1 happened:
    Originally the federal gov’t had 3 equally-important entities at the federal negotiating table. These were the ONLY three entities in the US that had an interest in EVERY law the federal gov’t would pass:
    – We the People (the House of Rep)
    – The States (the Senate)
    – The Executor of Laws (the Executive branch, POTUS through veto power)

    Then in 1913 our leaders removed the states from the federal negotiating table by passing the 17th Amendment. Now negotiations look like:
    – We the People (the House)
    – We the People (the Senate)
    – The Executor of Laws (POTUS via veto)

    The Senate is no longer accountable to their State Legislatures. This is the single action that led to America believing the federal gov’t is supposed to be in charge of everything in the US (against the Founder’s design of 3 equally-powerful entities checking-and-balancing each other). The federal gov’t now overruns the state gov’ts…and by proxy: YOU (collectively: We the People).

    And don’t fool yourself into thinking that We the People, having 2 seats at the table, are more powerful than the Executive (POTUS). Our power is divided (into 2 Houses with over 500 members) while the POTUS is one person whose power is focused. When was the last time you felt the federal gov’t was listening to you? Right, that proves the point…if the President doesn’t want to do it, it doesn’t get done (who wags whom?).

    And there’s a reason why our Founders “Bill-to-Law Process” started in the House. This way all law begins with We the People…then gets input from the States and the Executor of Laws. This design purposely put We the People in the driver’s seat…are we today?

    This setup allows bills to pass QUICKLY into law since one of the 3 interested parties has no say in them. The result is many more laws that aren’t well thought out (since an interested party has been excluded from negotiations). And each law that tramples on states, necessarily tramples on We the People who live in states.

    Now #2:
    Originally the federal gov’t got its operating budget from the state gov’ts ONLY. The attempts to get money directly from We the People were ruled by the Judiciary to be unconstitutional. So, what would any red-blooded American who loved themselves more than the Constitution do? Instead of “protect & defend” they “changed & enriched” themselves.

    In 1913 they passed the 16th Amendment that made direct taxation of US citizens the law of the land. And, in doing so, injected themselves into every taxation debate effecting every individual in the entire country. They also generated enormous wealth for the federal gov’t, so you might think we would never have problems paying for anything our gov’t needed. RIGGHHHHT! (as Bill Cosby used to say so well)

    With this windfall our gov’t did what most people who aren’t used to money do: they overspend it. They’ve also enriched themselves over and over again…how many in Congress (both houses) report an income of ONLY their gov’t salary? How many in Congress (both houses) have a SUBSTANTIALLY HIGHER net worth only AFTER being elected (they never made money hand-over-fist before being a “public servant”, but they sure do after!)?

    The answers to these and many other questions can be found by Googling them…do your own research. This is how a gov’t windfall (individual taxation) became a personal windfall for elected officials (who changed our Constitution & enriched themselves at our expense).

    Without these 2 amendments we would have 50 test cases (the states) to see what combination of freedoms vs. regulations works best. The state with the largest population would win, as many would flock to its borders for a true American Dream. Another aspect of this is that there would be 50 different cultures to choose from and you could choose which one fit best with your personal life principles…we would all have choices.

    With these amendments we are on our way to an America where all states are run by the federal gov’t and operate exactly the same. A new name may soon be in order for us: The United Socialist States of America.

    As it is, this structure has saddled Americans with ENORMOUS DEBT that we can’t possibly pay off in even 5 generations. Stop this insanity and restore states to the federal negotiating table because this is entirely gov’t’s fault and gov’t needs to repair our Constitution – and they WON’T do it on their own! We the People need to ensure they do it.

    Fix the foundation and the rest will right itself.


    Now, regardless of politics, we need to get together as a group of “We the People” and agree to a particular path that will fix our foundation. This is a call to action, not a plea for agreement. If you agree then act…find those in your area that are like-minded and determine among yourselves what it will take to influence your federal representatives to take these “foundation-fixing” actions. And if they don’t take them, or give you some cop-out answer have them fired if they’re up for election, or recalled if they’re not.

    The cop-out I hear the most is “I support doing this via the 10th Amendment”. Well the Tenth states:

    “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

    …meaning if the Constitution gives the federal gov’t powers, the federal gov’t keeps those powers. So, since the 16th & 17th Amd. are in the Constitution they are UNTOUCHABLE via the 10th Amd. Politicians who tell you this cop-out are untrustworthy and should be recalled (if this were the solution it would have been done in the 100+ years since these amendments passed).

    Therefore, the only option to get rid of the harmful effects of the 16th & 17th Amendments is repeal.

    The States can do this through the Convention of States, or Congress can do this as leaders in their own right. Currently the Convention of States ISN’T focused on this foundational fix…but We the People can change that. Congress doesn’t want this fix either, but we can change that. It ALL starts with us…We the People. It’s time to ACT.

    You are the key: copy and paste this message, share it as many times as you need to in order to get ALL elected officials to make these changes. ALL elected officials means: STATE Legislatures, your US Senators and House Representatives, etc. Talk to people about this, get your teenagers to understand it so they’re actually prepared to vote when they’re legal, this is OUR country and it’s WORTH talking about and FIXING.

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  2. Col., thank you for your diligence in sharing this information. I know most people dont’ know all this. we all have a funny feeling something isn’t right, but we don’t know all of it. Keep up the good work.

  3. If you want African style governance, first you need a real African “leader”. Onward into the fog, full speed ahead!

  4. This is very similar to the way the Nazis took power and ruled. The Nazis did not destroy any of the existing bureaucracies, they simply created new ones that may or may not supersede the old agencies. The new bureaucracies also had duties that overlapped two or more of the old bureaucracies, but not entirely, just a little. Meanwhile, other new agencies overlapped other bits of the old ones.

    The result was that the people had no idea which bureaucracy to listen or to address if they had problems. Not only was this a matter of jurisdictional confusion, but how in or out of favor with the Party said agency was counted for a lot as well. If it was currently in favor, it held more sway.

    So, the IRS is still an old agency but it has been given new teeth and filled with corrupt agents to do Obama’s dirty work.


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