Texas Wins Obamacare Tax Lawsuit - Texas Scorecard

Texas Attorney General Ken Paxton is celebrating a court ruling that will recover over $300 million for Texas taxpayers.

The original lawsuit, filed by Texas and five other states against the federal government in October of 2015, fought against an Obama-era regulation that penalized states who didn’t force their taxpayers to pay the Health Insurance Providers Fee to help fund Obamacare. States who refused to pay the fee had their Medicaid funds reduced.

A decision by the Northern U.S. District Court for the Northern District of Texas ruled that the fee was unconstitutional, ordering the IRS to reimburse the states for the fee.

“Obamacare is unconstitutional, plain and simple,” Paxton said. “We all know that the feds cannot tax the states, and we’re proud to return this illegally collected money to the people of Texas.”

In total, over $839 million was recouped by the states that brought the suit, which include Texas, Indiana, Kansas, Louisiana, Wisconsin, and Nebraska.

The decision is just the latest in a series of executive and judicial moves to dismantle the failed experiment of Obamacare.

Next month, Paxton will join Wisconsin in another court hearing arguing that the Affordable Healthcare Act in its entirety is unconstitutional.

The full court decision can be read here.