New Republican Tax Plan

According to the National Association of Enrolled Agents (NAEA): The Senate Healthcare Bill Makes its Appearance, at Least Initially, with a Thud
On Thursday, June 22nd, Senate Republicans released a draft bill to repeal and replace the Affordable Care Act (ACA). Among other changes, the draft bill would:

• Eliminate the individual mandate for obtaining health insurance coverage;
• Abolish the employer mandate for providing health insurance to employees;
• Align the existing tax credit structure to an individual or family’s age, income and geographic location like what is presently in place under the ACA;
• Eliminate the health insurance tax;
• Abolish the Medicare surtax by 2023; a nice break for the wealthy
• Repeal the Flexible Spending Account tax;
• Eliminate the 3.8 percent surtax on investment income; another break for the wealthy
• Abolish the Health Spending Account withdrawal tax;
• Eliminate the Chronic Care Tax;
• Abolish the Medicine Cabinet Tax;
• Repeal the tax on small businesses with indoor tanning services;
• Abolish the tax on prescription medicine;
• Repeal the tax on retiree prescription drug coverage;
• Eliminate the tax credits for plans that cover abortion;
• Delay the Cadillac tax until 2026;
• Change the age rating to 5:1, which would then permit insurers to charge older adults five times more than younger people for health care coverage. The current age band rating is 3:1. Yikes! This is scary for senior citizens
• Permit states to receive waivers to ignore certain coverage standards under the ACA to allow states to have more flexibility in deciding insurance rules for their state; however, states would not be able to opt out of regulations governing pre-existing conditions.
• Provide subsidies for those making up to 350 percent of the federal poverty line beginning in 2020. There is a 400 percent ceiling under ACA.

Senate Majority Leader Mitch McConnell (R-KY) would like to hold a vote on the bill next week. While Senate Republicans need 51 votes to pass the bill under reconciliation, they can only afford to lose two votes to pass the bill in the Senate. As of close of business today, five GOP Senators voiced their concerns and announced they would not support this version of the bill.

Looks like reverse Robin Hood. Breaks for the wealthy, taken from the elderly and the poor.

Leave us a Reply

Your email address will not be published. Required fields are marked *

* *

Back to top
©2013 Taxpertise | Bonnie Lee, E.A. | Ph: 707.935.1755 Fax: 707.938.1891 | 453 2nd Street West, Sonoma, CA 95476