I was puzzled when I heard Nancy Pelosi denouncing the just-passed House Obamacare repeal bill as a “tax cut for the rich.” I am entirely in favor of tax cuts for the rich, but had never thought of that as one of Obamacare repeal’s key virtues.
It turns out that repealing Obamacare is, indeed, a major tax cut, although not mostly for the “rich.” Americans For Tax Reform calculates that the House repeal bill constitutes a trillion dollar tax cut. It:
-Abolishes the Obamacare Individual Mandate Tax which hits 8 million Americans each year.
-Abolishes the Obamacare Employer Mandate Tax. Together with repeal of the Individual Mandate Tax repeal this is a $270 billion tax cut.
-Abolishes Obamacare’s Medicine Cabinet Tax which hits 20 million Americans with Health Savings Accounts and 30 million Americans with Flexible Spending Accounts. This is a $6 billion tax cut.
-Abolishes Obamacare’s Flexible Spending Account tax on 30 million Americans. This is a $20 billion tax cut.
-Abolishes Obamacare’s Chronic Care Tax on 10 million Americans with high out of pocket medical expenses. This is a $126 billion tax cut.
-Abolishes Obamacare’s HSA withdrawal tax. This is a $100 million tax cut.
-Abolishes Obamacare’s 10% excise tax on small businesses with indoor tanning services. This is a $600 million tax cut.
-Abolishes the Obamacare health insurance tax. This is a $145 billion tax cut.
-Abolishes the Obamacare 3.8% surtax on investment income. This is a $172 billion tax cut.
-Abolishes the Obamacare medical device tax. This is a $20 billion tax cut.
-Abolishes the Obamacare tax on prescription medicine. This is a $28 billion tax cut.
-Abolishes the Obamacare tax on retiree prescription drug coverage. This is a $2 billion tax cut.
What a wonderful list! I had completely forgotten about the tanning bed tax. Actually, I had forgotten about most of them. If the Senate is able to improve the House bill, fine. But one way or another, we need this legislation to pass.