MSNBC reported that Republicans are not defending the big tax cuts for insurance industry executives in Trumpcare.
The Republican cabinet secretary was incredulous. “I’m not aware of that,” Price responded.
The bill really isn’t that long. How the Secretary of Health and Human Services, who presumably read the bill, could be unaware of the provision is difficult to understand.
Around the same time, House Speaker Paul Ryan (R-Wis.) was asked why his reform blueprint includes “a big, fat tax break.” The Republican leader responded, simply, “Read the bill.”
We did read the bill. The Republican plan to replace Obamacare includes a tax break for insurance company executives making over $500,000 per year.
If you voted for Trump because you wanted to see insurance-company executives get a big tax break, this is, of course, great news. For everyone else, however, it’s not quite as impressive.
Other tax breaks in the new reform legislation as explained by Vox explained:
It’s reasonable … to ask what there is to like about the proposal. The main answer, for Republicans is Congress, is that it also contains $600 billion in tax cuts — tax cuts that would save the wealthiest 0.1 percent of Americans nearly $200,000 each in a single year, according to a batch of analyses released by the Joint Committee on Taxation on Tuesday.
The single biggest tax cut included in the bill is the repeal of the 3.8 percent tax the Affordable Care Act applied to capital gains, dividend, and interest income for families with $250,000 or more in income ($125,000 for singles).
Repealing that tax is a change that, by definition, only helps the rich, or at least the affluent.
Republicans intend to undo the economics of “Obamacare,” which necessarily means going in a regressive direction: giving people at the top big tax breaks, while taking benefits away from everyone else.
Why in the world would GOP officials champion a health care proposal that would take away coverage from millions, increase deductibles and premiums, and leave much of the country worse off? It’s probably because Republicans really like cutting taxes for rich people.
For those on the right, this is a feature of the American Health Care Act, not a bug.