Are Political Subdivisions Exempt From ACA Federal Tax Penalties?

Robin, a seasoned loophole technocrat from Sherwood Forest and his jolly band of renegades, makes the argument political subdivisions are exempt from all federal taxation. If so then it must follow all political subdivisions such as school districts, cities and counties are exempt from Affordable Care Act (ACA) federal tax penalties.

If it’s true political subdivisions are exempt from all ACA federal taxation then it must necessarily be assumed they are effectively exempt from all ACA mandates. Common sense dictates that was not the intent of Congress.

The King’s men shout they can find nothing in the IRS tax codes that specifically and clearly addresses this. However, Sherwood Forest tribal members promulgating this exemption point with confidence to language in the IRS Code.

According to a royal high ranking IRS barrister there is nothing in the ACA that exempts political subdivisions from ACA mandates or penalties. When it was pointed out political subdivisions are exempt from federal taxation the response was “That’s a constitutional law question.” When pressed further the now harried barrister, in a low tone, whispered “It doesn’t matter. The King doesn’t care!”

When asked if he feared punishing government sanctions from all the King’s men Robin replied “Ah, but remember faint hearts never win. Fear not, my friends.”

Lacking a filter between brain and mouth Little John fearlessly interrupts “You know something, Robin? You’re taking too many chances.”

In a calm and measured voice Robin replied “I’ll cross that bridge if I want to Little John and nothing, nobody, including you can stop me!”