Oh, good. I was hoping someone would bring this up. For reference,
here's the ThinkProgress article that brought Walker's comments to light. (The fact that the article originated at ThinkProgress should have been a red flag counseling against taking it seriously, but what can you do? This is what liberals have been reduced to.)
Here is ThinkProgress's transcription of Walker's comments:
ThinkProgress uses Walker's comment to bolster two points: first, it says that Walker's experience shows that the statute is ambiguous on the question of whether credits are available on federal exchanges, and so the IRS rule must stand. Second, it says that Walker's experience shows that the federal government's condition on the availability of credits was not clear enough for the condition to be constitutional. I'll address both points.
First, does Walker's comment show that the statute is ambiguous? We have no reason to think so. Walker isn't talking about the ACA in a vacuum. He admits that his review of the statute and the rules regarding exchanges was informed by his interactions with the administration. The administration would have told Walker that credits would be available on a state-established or a federally established exchange.
At worst, Walker's comment shows that he accepted the administration's position regarding credits on the federal exchanges--we have no reason to think he independently arrived at the same conclusion.
(As an aside, when you read the bolded sentence in the context of Walker's comment, it appears that Walker is discussing "substantive difference
" relating to control of the exchange and insurance policies offered through it. You might think that, even accepting such a narrow interpretation, it stands to reason that Walker would have taken the opportunity to explain that there is, actually, a substantive difference between exchanges with respect to credits. But I don't think that's a reasonable conclusion: Walker's comment is a defense of his refusal to establish an exchange, so pointing out why that might be detrimental wouldn't have made sense.)
What of ThinkProgress's second argument? ThinkProgress is relying on cases discussing Congress' spending power. Congress exercises its spending power when it offers money to the states, so long as the states accept certain conditions. But that's not what's happening here. Here, the government is offering tax credits directly to taxpayers, no doubt as an exercise of its taxing power. It seems to me that ThinkProgress simply misunderstands the law applicable to this type of transaction. However, I haven't looked too deeply into this, and would welcome any helpful commentary from others.
Finally, let me note my amusement at the sudden endorsement by liberals of Governor Walker's policy expertise. Given Walker's sudden rise to expert status despite his low educational attainment, I can see how Dr. Gruber's MIT professorship really pays for itself.