ACA Repeal Bill Stuffed with Nearly $500 Billion in Tax Cuts
After the rushed vote to push the American Health Care Act through committee, which would repeal large parts of the American Care Act, ranking member of the House Ways and Means Rep. Richard Neal wondered:
"Is this health care or is this a tax cut bill?"
It's a good question.
Especially because over the next 10 years, the ACA repeal bill would cut $275 billion in taxes for households making more than $250,000/yr and $193 billion for Health Insurance, Pharmaceutical and Medical Device companies.
Among the cuts are:
- Repealing a 3.8% tax on "passive income" from investments -- stocks, property rental, capital gains at a cost of $158 billion / 10 years.
- Cutting a higher rate medicare tax on incomes over $250,000 per married couple at a cost of $117 billion / 10 years.
- Dropping taxes on Big Pharma $25 billion / 10 years.
- Dropping taxes on Health Insurance Companies $145 billion / 10 years.
- Dropping taxes on companies which produce medical devices by $20 billion / 10 years.
That adds up to $465 billion in tax cuts.
As the news stirs today that the Congressional Budget Office estimates 14 million people will lose insuance in the next year if the repeal is passed, and a total of 24 million in the next decade, one has to wonder:
If we are giving away health care for millions and millions of people what are we getting in return?
Because half a trillion in tax cuts for a set of corporations and families making more than $250,000 per year isn't a very motivating answer.