WASHINGTON- A new report by Julie Appleby with National Public Radio details how tax policy would change under the Republican health proposals. Both proposals would seek to undo taxes imposed by the Affordable Care Act (ACA), also known as Obamacare. Undoing these taxes would mean that individuals with incomes over $200,000 and couples with income over $250,000 would see modest decreases in Medicare payroll and investment income taxes. It would also would relieve medical device manufacturers and insurance companies of billions in taxes. This clearly shows that both health proposals are designed to benefit the wealthy at the expense of the middle and working classes.
Julie Appleby with National Public Radio reports:
There’s a lot of talk on Capitol Hill about the tax cuts included in the Republican health plans, but unless you are a frequent user of tanning beds or have personal wealth that puts you in the top 1 percent, you might not feel much effect.
The House and Senate bills both change or eliminate more than a dozen taxes that were levied to help pay for the Affordable Care Act’s insurance subsidies and to bolster Medicare and expand Medicaid. Republicans and other ACA critics have argued that the taxes are onerous for businesses and families.
The Congressional Budget Office estimates that the tax cuts and coverage changes in the Senate proposal would reduce the federal government’s revenue by $700 billion over the next 10 years. [. . .]
The ACA levied a 0.9 percent increase in the Medicare payroll tax on income above $200,000 for individuals or $250,000 for couples.
It also added a 3.8 percent tax on net investment income — as in stocks, bonds, interest and capital gains — that kicks in after $200,000 for individuals and $250,000 for couples. [. . .]
Under the Senate plan, drug companies would see an estimated $25.7 billion cut over 10 years, while medical device makers would get about $19.6 billion in savings. Some of the cuts would start as early as this calendar year.
In both bills, there’s also relief for insurers. The GOP plans would eliminate a tax on all insurers based on their market share. Congress waived the tax this year, hoping the one-time move would help slow premium increases. The CBO analysis of the Senate bill found a permanent cut would save the industry $144.7 billion over the next decade.
Read more at National Public Radio.
