We know that repealing the Affordable Care Act will increase the number of uninsured Americans by tens of millions. We also know it will significantly raise premiums for people who purchase health insurance in the individual market (people without employer-based health insurance and who are not eligible for Medicaid or Medicare). Read.
Members of Congress who care about the size of the federal budget deficit should take note that repealing the ACA also could significantly increase the federal budget deficit.
In June, 2015 the Congressional Budget Office of the U.S. Congress analyzed the budgetary effects of repealing the ACA and estimated that it would increase federal budget deficit by $137 billion over the 2016–2025 period.
ACA Repeal Restores Tax Breaks for the Wealthy Among other reasons for the impact on the deficit, the prior ACA repeal bill vetoed by President Obama immediately provided a tax cut to individuals with incomes over $200,000 and couples with incomes over $250,000 a year.
Low- and moderate-income people pay Medicare taxes on all of their income. However, before the ACA, higher income people did not pay taxes on all of their income. The ACA ended this inequity in Medicare taxes.
An ACA repeal would restore this Medicare tax break for the wealthy:
– Millionaire household would receive a tax cut on average of $49,370 a year
– For multimillionaire tax filers – with incomes above $3.8 million a year – the average tax cut would be $195,000
Without this and other revenue in the ACA, any replacement plan can only leave more people without insurance and others with higher premiums and copayments.
