The Center for Budget and Policy Priorities has released a report that shows why the Republicans are so eager to repeal the Affordable Care Act even if there is nothing to replace it with. The reason is not surprising: it would result in a huge tax cut for the wealthy, which is the only thing that matters these days.
First, it would eliminate two Medicare taxes — the additional Hospital Insurance tax and the Medicare tax on unearned income — that both fall only on high-income filers, thereby cutting taxes substantially for those at the top.
- The top 400 highest-income taxpayers — whose annual incomes average more than $300 million apiece — each would receive an average annual tax cut of about $7 million, we estimate from Internal Revenue Service (IRS) data.
- This group’s tax cut would total about $2.8 billion a year.
- The roughly 160 million households with incomes below $200,000 would get nothing from the repeal of these two taxes.
Finally, beyond eliminating these two Medicare taxes, the Republican plan to repeal ACA is expected to include other tax cuts that will benefit the top 400. 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.
Of course, low-income people would see an increase in their taxes because they would lose the tax credits that made the premiums affordable.
As always, this raises the question of how much more money do wealthy people want? They clearly have far more than they need. Is there no limit to their greed?
Silly me for asking such absurd questions. No amount of wealth accumulation will be sufficient for them.