By Mike Perleberg
(Indianapolis, Ind.) - Indiana’s attorney general and 15 school districts are suing the Internal Revenue Service over Obamacare.
Attorney General Greg Zoeller said the case is about the fundamental relationship between the state and federal government. In the suit, Zoeller and the school districts claim the federal Affordable Care Act improperly regulates sovereign states.
“We respect the United States Supreme Court’s ruling last year upholding the individual mandate to buy health insurance; but it did not address the recent IRS regulations extending the reach of the ACA’s employer mandate,” the attorney general said in a press release.
Zoeller’s office said the state and school districts have been faced with the decision to reduce hours of their part-time employees in efforts to avoid financial penalties from the IRS stemming from the employer mandate.
The complaint goes on to allege that the health care law does not authorize the IRS to treat states as a taxable entity, such as businesses.
“It’s very unfortunate that by unconstitutionally interfering with our state personnel policy, the IRS has caused hardship not only to the State but to a number of our state employees who will see their hours reduced through no fault of their own, and it inflicts similar injuries on schools and local governments and their part-time employees,” Zoeller said.
The suit was filed Tuesday in U.S. District Court for the Southern District of Indiana in Indianapolis. The 15 school districts joining the state’s lawsuit include the following:
• Metropolitan School District of Martinsville, Martinsville, Ind.
• Perry Central Community Schools, Leopold, Ind.
• Benton Community School Corporation, Fowler, Ind.
• Community School Corporation of Eastern Hancock County, Charlottesville, Ind.
• John Glenn School Corporation, Walkerton, Ind.
• Monroe-Gregg School District, Monrovia, Ind.
• Mooresville Consolidated School Corporation, Mooresville, Ind.
• North Lawrence Community Schools, Bedford, Ind.
• Northwestern Consolidated School District of Shelby County, Fairland, Ind.
• Shelbyville Central Schools, Shelbyville, Ind.
• Southwest Parke Community School Corporation, Montezuma, Ind.
• Vincennes Community School Corporation, Vincennes, Ind.
• Madison Consolidated Schools, Madison, Ind.
• South Henry School Corporation, Straughn, Ind.
• Southwestern Jefferson County Consolidated School Corporation, Hanover, Ind.