Lawsuit filed by a group of small business owners and individuals against the Internal Revenue Service over the agency’s “Subsidy Expansion Rule.”

From the Blog of Legal Times:

“Objecting to what they term an ‘Obamacare power grab,’ a group of small business owners and individuals in six states filed suit today against the Internal Revenue Service over a rule that expands health insurance subsidies.

The plaintiffs say the IRS regulations ‘actually serve to financially injure and restrict [their] economic choices’ and are arbitrary and capricious, according to the complaint filed in U.S. District Court for the District of Columbia by Jones Day partner Michael Carvin, who co-argued the U.S. Supreme Court cases challenging the Affordable Care Act in March 2012…

‘The IRS rule we are challenging is at war with the act’s plain language and completely rewrites the deal that Congress made with the states on running these insurance exchanges,’ Carvin said in a news release announcing the suit, which is being coordinated by the Competitive Enterprise Institute.”