If you are a regular reader here you know that the Lexington Libertarian has said many times over that the Democrats do not know how to grow the economy. As a matter of fact they are really good at depressing the econonmy.
The just passed American Health Care Act is one big step in unburdening the economy from stifiling taxation and putting people back to work. When the economy grows, business expands and new businesses start up. That means additional good paying jobs. That also means higher tax revenues.
Friend and financial and tax guru Dean Owens, CPA, of Paducah, KY has this to say about the new bill:
Today, the House of Representatives passed the GOP’s proposed American Health Care Act (AHCA) plan in a 217 to 213 vote. The plan would repeal and replace several provisions of the current Affordable Care Act (ACA) by amending contribution limits to HSAs, returning the medical expense deduction AGI threshold to 7.5% and repealing certain taxes enacted under the ACA.
The following are a few of the changes that would result if the bill passes in the Senate:
- Ends the tax penalty against people without coverage.
- Ends the Medicaid expansion funding.
- Changes Medicaid from an open-ended program to one that gives states fixed amounts of money per person.
- Replaces the ACA’s cost-sharing subsidies based mostly on consumers’ incomes and premium costs with tax credits that grow with age.
- Repeals taxes on the wealthy, insurers, drug and medical device makers.
- Consumers who let their coverage lapse for more than 63 days in a year would be charged 30% surcharges to regain insurance. This would include people with pre-existing medical conditions.
- State waivers would allow insurers to charge older customers higher premiums by as much as they’d like if states adopt this provision.
- States get $8 billion over five years to finance high-risk pools that cover those with pre-existing conditions.
- States get $130 billion over a decade to help people afford coverage.
- Keeps ACA provision that children can remain on their parents’ insurance plans until age 26.
We see this bill as an improvement to the current Affordable Care Act. We believe it will lower premiums and out of pocket expense for the vast majority of Americans because they will be able to choose policies that better fit their lives. For a small percentage, those who are at high risk of health care, or pre-existing conditions, there will be a few extra steps necessary to secure and maintain insurance coverage, but at affordable rates. Given the windfall to the vast majority of America, via lower premiums and out of pocket cost, we feel this is a positive trade. Also, the excess taxation in Obama Care has been a significant drain on the economy, and repeal of these taxes will help encourage economic growth.
The American Health Care Act is a $1 trillion tax cut and a $1.1 trillion spending cut over the next decade. Passing this bill makes fundamental tax reform possible this year. This is a giant step forward in lowering taxes, cutting spending, and reforming our nation’s health care system.
The American Health Care Act (AHCA) abolishes the following taxes imposed by Obama and the Democrat party as part of Obamacare:
- Abolishes the Obamacare Individual Mandate Tax which hits 8 million Americans each year.
- Abolishes the Obamacare Employer Mandate Tax. Together with a repeal of the Individual Mandate Tax, 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.It’s imports to remember government transfers take money from producers and investors and gives it to non-producers. This $1.1 trillion tax cut will boost the economy materially over the coming years.