Indiana Sues IRS over Obamacare Penalties

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Fifteen Indiana public school districts and the state are suing the Internal Revenue Service over the penalties it will it impose to implement Obamacare.

The lawsuit contends the IRS cannot impose the "employer mandate" requirements on state and local governments.

State leaders say the rules will force those governments to reduce the hours of part-time employees to avoid those tax penalties.

One school administrator said the agency is "overstepping" the boundaries Congress created and its rules will harm the district.

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