Sen GOP Health Bill: Tax Cuts for Rich 06/23 06:05
Senate Republicans' new health bill cuts taxes by nearly $1 trillion over
the next decade, mostly for corporations and the richest families in America.
WASHINGTON (AP) -- Senate Republicans' new health bill cuts taxes by nearly
$1 trillion over the next decade, mostly for corporations and the richest
families in America.
It uses a budget gimmick to comply with Senate rules against adding to the
federal government's long-term debt.
Senate Republican leaders unveiled a draft of their bill to repeal and
replace President Barack Obama's health care law on Thursday and argued it
would eliminate job-killing taxes enacted under the 7-year-old health law.
Democrats countered that the bill is a giveaway to the rich at the expense of
middle- and low-income families who will lose health insurance.
And in a Facebook post, Obama said: "The Senate bill, unveiled today, is not
a health care bill. It's a massive transfer of wealth from middle-class and
poor families to the richest people in America. It hands enormous tax cuts to
the rich and to the drug and insurance industries, paid for by cutting health
care for everybody else."
Senate Republicans released only a draft of their bill, with no analysis and
no cost estimates. However, the tax cuts are very similar to those in the House
bill passed last month, though some would be delayed to pay for more generous
The major tax provisions in the bill would:
---Delay a new "Cadillac" tax on high-cost health insurance plans until
2026. This is a budget gimmick to ensure that the bill complies with Senate
rules that forbid the legislation from adding to the federal government's
The tax was part of Obama's health law, and it has long been unpopular among
Republicans, as well as business groups and labor. On paper, the tax would take
effect in 2026, generating billions of dollars in revenue every year after.
However, Congress has already delayed the tax once, until 2020, making it
unlikely lawmakers will ever let it take effect. Of course, in 2026, it will be
somebody else's problem.
--- Repeal a tax on wealthy investors, saving them about $172 billion over
the next decade.
Obama's health law enacted an additional 3.8 percent tax on investment
income for married couples making more than $250,000 a year and individuals
making more than $125,000. The Senate bill would repeal the tax this year.
About 90 percent of the benefit from repealing the tax would go to the top 1
percent of earners, who make $700,000 or more, according to the nonpartisan Tax
---Repeal a new Medicare payroll tax on high-income families, saving them
about $59 billion over the next decade. Obama's health law enacted an
additional 0.9 percent payroll tax on wages above $250,000 for married couples
and above $125,000 for individuals. The Senate bill would repeal the tax in
---Repeal a tax penalty on larger employers not providing health insurance
to workers, saving them $171 billion over the next decade.
---Repeal a tax penalty for people who do not get health insurance, saving
them $38 billion over the next decade.
---Repeal a new annual fee on health providers, based on market share,
saving them about $145 billion over the next decade.
---Repeal a 2.3 percent excise tax on companies that make or import medical
devices, saving them around $19 billion over the next decade. The Senate bill
would repeal the tax in 2018 --- a year later than the House bill.
---Repeal a 10 percent excise tax on tanning services, saving people $621
million over the next decade.