Chart of the day

Posted: 8 March 2017 in Uncategorized
Tags: , , , , , , ,

repeal

source

As regular readers know, I’m no fan of the current healthcare system in the United States, including the changes introduced by the Affordable Care Act aka Obamacare.

But the Republican plan to replace Obamacare will make things even worse.

As a recent report from the Kaiser Family Foundation makes clear,

Both the ACA and the American Health Care Act include tax credits in their approach. However, the law and the proposal calculate credit amounts differently: the ACA takes family income, local cost of insurance, and age into account, while the replacement proposal bases tax credits only on age, with a phase out for individuals with incomes above $75,000.

Thus, the biggest losers under the change would be older Americans with low incomes, especially those who live in high-cost areas. They are the people who benefited most from Obamacare. For some people, the new tax credit system will be more generous. The winners are likely to be younger, earn higher incomes and live in areas where the cost of health insurance is low.

And, of course, as the Wall Street Journal explains, top income earners would pay less tax under the replacement proposal.

As expected, the bill repeals a 3.8% tax on investment income and a 0.9% tax on wages. Both levies affect only the highest-earning households, those individuals making at least $200,000 and married couples making more than $250,000. . .Repealing the investment tax would boost after-tax income by 1.6% for the top 1% of households and give the top 0.1% an average tax cut of $165,000

There’s simply no hiding the unequalizing effects of the Republican healthcare plan.

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