Obamacare Repeal = $7 Million Tax Cut for Nation's Richest 400 People

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Repealing Obamacare, which Republicans on Friday appear closer to doing, would deliver a sizeable tax cut for the rich, a new report shows.

Released Thursday by the Center on Budget and Policy Priorities (CBPP), the publication shows that the repeal would give to each of the top 400 highest-income taxpayers—who averaged incomes of roughly $318 million in 2014—a tax cut of about $7 million a year.

That’s because getting rid of the healthcare law would mean getting rid of its two Medicare taxes, which are paid for by individuals with incomes above $200,000 and couples with incomes above $250,000. One is a 3.8 percent Medicare tax that hits their unearned income (like capital gains) above those thresholds, while the other is additional 0.9 percent tax on earned income above those thresholds.

As such, a repeal “delivers tax cuts that are extremely tilted to the top,” the report states.

At the same time, low-and middle-income households would see a rise in taxes since they would lose premium tax credits to buy health coverage through the marketplaces, CBPP notes. For the rich, the benefits of a repeal wouldn’t end with the elimination of the Medicare taxes, the report continues:

Republicans also plan to move a broader tax package this year, and the tax proposals from both the House GOP (in its “Better Way” plan issued last June) and President-elect Trump include large, additional net tax cuts heavily focused on the most well-off. These include such proposals as sharply reducing the top business and individual income tax rates and repealing the estate tax.

Apart from taking healthcare coverage away from some 30 million people, another study released last week showed that the repeal could cost states trillions in lost revenue and output.

Meanwhile, Sen. Bernie Sanders (I-Vt.) and Democratic leaders in Congress have called for Jan. 15 to be a day of action nationwide to “[m]ake sure [President-elect] Donald Trump and his Republican colleagues know that we won’t let them take our healthcare away, end Medicare as we know it, cut Medicaid, and defund Planned Parenthood.”

Via Common Dreams. This piece was reprinted by RINF Alternative News with permission or license.

  • Joel W

    Not a valid reason to keep Leviathan. And I’m sick and tired of hearing “healthcare will be taken away,” as if without the ACA people can’t go to the ER. And Planned (Genocide) Parenthood is to health care as arsenic is to healthy food. Please somebody explain how the satanic ritual of child sacrifice became known as “women’s health.” What about the health of the child being slaughtered. Or, for those who don’t care for the religious argument against infanticide, its a damn Constitutional violation. The child is deprived of life and liberty WITHOUT due process. And if PP is such a noble organization, then let all the satanic, pedo baby murderers in Hollyweird fund it, since it seems so damn important to them to make sacrifices to Moloch.

    As for this: “…the repeal could cost states trillions in lost revenue…” pardon me if I don’t lose any sleep over government entities losing revenue (aka strong armed robbery).

    Enforce existing law regarding monopolies, price fixing, RICO statutes, etc., require ALL procedures and medications have advertised prices that are the same regardless of anything (you know, like EVERY OTHER BUSINESS in America), and allow insurance to be sold across state lines to allow for competition (i.e. free market principals aka ECONOMICS 101). There is a great start that will guarantee to work.