Obamacare Repeal Would Benefit High-Income Taxpayers: Think Tank
The repeal or delay to tax increases in the Affordable Care Act (ACA) will “overwhelmingly benefit high-income households,” according to the Urban-Brookings Tax Policy Centre (TPC).
The House Ways and Means Committee has already approved the Republican’s proposals to repeal elements of ACA, commonly known as Obamacare. The TPC estimates that once the changes are fully effective in 2022, the chief beneficiaries in relative terms will be those households with higher incomes.
The TPC has calculated that the lowest income households will receive a tax cut of USD150, equal to approximately 0.9 percent of their after-tax income. The highest income households would see tax cuts exceeding two percent of their after-tax income.
The top one percent of households by income would receive a tax cut of more than USD37,000, equivalent to 2.1 percent of their after-tax income, the think tank said.
Households in the top 0.1 percent would enjoy a tax cut of USD207,000 on average, or 2.6 percent of their income.
The TPC estimates cover the effects of repealing tax-raising measures in the ACA, such as the Medicare tax and net investment tax for high-income households. It does not analyze the Republican’s alternative proposal for age-based refundable tax credits.
