Bench Memos

Obamacare Architect Embraced Anti-Subsidy Reading

If this doesn’t quiet down the crazies on the Left, nothing will.

It turns out that leading Obamacare architect (and MIT economist) Jonathan Gruber embraced the exact reading of the exchange-subsidy provisions that the plaintiffs challenging the Obama administration’s application of those provisions have advanced. Specifically, in a January 2012 presentation, Gruber explained:

[S]o these health-insurance Exchanges … will be these new shopping places and they’ll be the place that people go to get their subsidies for health insurance. In the law, it says if the states don’t provide them, the federal backstop will. The federal government has been sort of slow in putting out its backstop, I think partly because they want to sort of squeeze the states to do it. I think what’s important to remember politically about this, is if you’re a state and you don’t set up an Exchange, that means your citizens don’t get their tax credits. But your citizens still pay the taxes that support this bill. So you’re essentially saying to your citizens, you’re going to pay all the taxes to help all the other states in the country. I hope that’s a blatant enough political reality that states will get their act together and realize there are billions of dollars at stake here in setting up these Exchanges, and that they’ll do it

Cato’s Michael Cannon, who (with Jonathan Adler) has spearheaded the challenges, has much more here (including a video of Gruber’s remarks).

Update: As Gruber tries to run away from his comments, John Sexton and Peter Suderman highlight similar comments by Gruber on another occasion.

Most Popular

Culture

What Self-Help Guru Tony Robbins Was Trying to Say

Tony Robbins must have known immediately that he'd made a huge mistake in how he responded to a question about #MeToo. Last month, at one of Robbins's popular, sold-out seminars, audience member Nanine McCool told the self-help guru that she thought he misunderstood the #MeToo movement. You can see the entire ... Read More
Sports

The Dominant-Sport Theory of American Politics

I think it’s safe to assert that President Trump has an unfortunate tendency to do and say (and tweet) embarrassing things. When he does, we all join in the condemnation, and often it’s not so much for the substance as for the style. The president of the United States should be dignified, measured, slow to ... Read More
Film & TV

Little Pink House Speaks Truth to Power

Coming soon to a cinema near you—you can make this happen; read on—is a bite-your-nails true-story thriller featuring heroes, villains, and a history-making struggle over . . . the Constitution’s Takings Clause. Next February 24, Little Pink House will win the Oscar for Best Picture if Hollywood’s ... Read More