https://www.wsj.com/articles/obamacare-politicizes-irs-internal-revenue-service-affordable-care-act-subsidies-families-tax-code-healthcare-biden-obama-11649337661?mod=opinion_lead_pos7
President Obama visited the White House Tuesday to support his successor’s attempts to expand ObamaCare. The big news is that the Biden White House has succeeded in convincing the Internal Revenue Service to propose a rule that would illegally extend insurance subsidies to people who are ineligible for them.
Mr. Obama’s presence at the White House was ironic given that the IRS’s proposed policy reverses its decision from a decade ago, when he was president. At that time, the IRS believed it had to follow the law as written. The reversal shows that the enforcement of the tax code has become deeply politicized. Through this rule, if finalized, the IRS will expand ObamaCare subsidies by billions of dollars a year beyond what Congress authorized.
At issue is whether an employer’s offer to provide health insurance to an employee’s dependents disqualifies those dependents from ObamaCare subsidies. The 2010 law created large subsidies for plans in the new exchanges—so large that lawmakers worried the fiscal cost would be untenable. Mr. Obama insisted that ObamaCare cost less than $1 trillion in its first decade. To meet that demand, Congress limited subsidies to people without access to Medicaid or an affordable employer plan.
The trick was determining affordability. ObamaCare based affordability on the cost of coverage for the employee alone. Both he and his dependents offered coverage are ineligible for subsidies if his premium payment for self-only coverage exceeds 9.6% of income.