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" Republican plans to repeal the Affordable Care Act without a replacement — which health care policy experts predict could cost 30 million people their health insurance — will also bring a major tax break for high-income Americans.
Two taxes that will be presumably axed with the law affect only those making $200,000 or more. The break the ACA repeal will bring to those taxpayers will amount to a $346 billion tax cut in total over 10 years, according to the CBO report on the 2015 repeal legislation GOP lawmakers say they’ll be using as their model next year.
As University of Michigan law professor Nicholas Bagley pointed out on the Incidental Economist blog, this comes as Trump and his surrogates promised that any major tax cut for the rich will be offset by closing their deductions, which would not be the case with the cuts in the ACA repeal.
"That $346 billion represents about $1,000 for every man, woman, and child in the United States. Every cent will go into the pockets of people making more than $200,000 per year," Bagley wrote.
It's not exactly what's on the top of American public's mind considering all the other dire warnings being issued about the repercussions of repealing Obamacare, even with a delay, without a replacement plan queued up. Call it a stealth tax cut.
“Repealing the Affordable Care Act is a way to give wealthy people a fairly substantial tax cut without that necessarily being the largest headline,” Harry Stein, the director of fiscal policy at the left-leaning think tank Center for American Progress, told TPM.
The taxes in question are known as the Medicare tax on higher income individuals and the net investment income tax. The former is a 0.9 percent tax placed on those who earn $200,000 or more individually (or $250,000 for married couples who file jointly). It comes on top of the Medicare payroll tax employees pay together with their employers, but only applies to the income that exceeds the $200,000 threshold.
The net investment income tax is a 3.8 percent levy meant to complement the Medicare payroll tax, since investment income was not previously taxed in that way. It applies on investment income, such as such as capital gains, dividends and interest income, for those making $200,000 or more. "
http://talkingpointsmemo.com/dc/surprise-repealing-obamacare-includes-a-big-tax-cut-for-the-rich?utm_content=bufferd3b36&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
Two taxes that will be presumably axed with the law affect only those making $200,000 or more. The break the ACA repeal will bring to those taxpayers will amount to a $346 billion tax cut in total over 10 years, according to the CBO report on the 2015 repeal legislation GOP lawmakers say they’ll be using as their model next year.
As University of Michigan law professor Nicholas Bagley pointed out on the Incidental Economist blog, this comes as Trump and his surrogates promised that any major tax cut for the rich will be offset by closing their deductions, which would not be the case with the cuts in the ACA repeal.
"That $346 billion represents about $1,000 for every man, woman, and child in the United States. Every cent will go into the pockets of people making more than $200,000 per year," Bagley wrote.
It's not exactly what's on the top of American public's mind considering all the other dire warnings being issued about the repercussions of repealing Obamacare, even with a delay, without a replacement plan queued up. Call it a stealth tax cut.
“Repealing the Affordable Care Act is a way to give wealthy people a fairly substantial tax cut without that necessarily being the largest headline,” Harry Stein, the director of fiscal policy at the left-leaning think tank Center for American Progress, told TPM.
The taxes in question are known as the Medicare tax on higher income individuals and the net investment income tax. The former is a 0.9 percent tax placed on those who earn $200,000 or more individually (or $250,000 for married couples who file jointly). It comes on top of the Medicare payroll tax employees pay together with their employers, but only applies to the income that exceeds the $200,000 threshold.
The net investment income tax is a 3.8 percent levy meant to complement the Medicare payroll tax, since investment income was not previously taxed in that way. It applies on investment income, such as such as capital gains, dividends and interest income, for those making $200,000 or more. "
http://talkingpointsmemo.com/dc/surprise-repealing-obamacare-includes-a-big-tax-cut-for-the-rich?utm_content=bufferd3b36&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
