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Judge: Obamacare Subsidies 'Abuse of Discretion'

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A federal judge in Oklahoma has ruled against Obamacare, striking down a special rule created by the IRS.

That rule allowed the Obama administration to give healthcare subsidies to people in states that don't have their own healthcare exchanges.

But on Tuesday, U.S. District Judge Ronald White said the tax agency committed "an abuse of discretion," and represented "an invalid implementation" of the federal law.

"The court holds that the IRS Rule is arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law ... in excess of statutory jurisdiction, authority, or limitations, or short of statutory right ... or otherwise is an invalid implementation of the ACA," White wrote.

A Department of Justice spokesperson told Business Insider that the Obama administration will appeal the decision to the 10th Circuit Court of Appeals

"The district judge in the Oklahoma case made a decision that is inconsistent with the text of the statute, the clear intent of Congress, common sense, and the Fourth Circuit panel's unanimous contrary ruling on the same issue," the spokesperson said.

The issue could end up in the U.S. Supreme Court since it's being fought in several courts around the country.

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