By Harris Meyer | May
25, 2017
Congress' nonpartisan Joint
Committee on Taxation on Wednesday released its estimate of
the revenue impact of the tax provisions in the House Republicans' American
Health Care Act.
It received less attention than the Congressional Budget Office's report on the bill's cost and coverage impact, which came out at the same time.
The AHCA would repeal or delay the Affordable Care Act's revenue provisions for financing the law's insurance coverage expansions and benefit enhancements. In total, the Joint Committee on Taxation found that the bill's tax provisions would slash federal revenue by $662.6 billion from 2017 through 2026.
Meanwhile, the CBO found that the bill's reductions in federal Medicaid spending and its repeal of the ACA's premium and cost-sharing subsidies would cut federal outlays by a total of about $1.1 trillion over 10 years.
Here are the specific 10-year sources of revenue reduction as estimated by the Joint Committee on Taxation:
It received less attention than the Congressional Budget Office's report on the bill's cost and coverage impact, which came out at the same time.
The AHCA would repeal or delay the Affordable Care Act's revenue provisions for financing the law's insurance coverage expansions and benefit enhancements. In total, the Joint Committee on Taxation found that the bill's tax provisions would slash federal revenue by $662.6 billion from 2017 through 2026.
Meanwhile, the CBO found that the bill's reductions in federal Medicaid spending and its repeal of the ACA's premium and cost-sharing subsidies would cut federal outlays by a total of about $1.1 trillion over 10 years.
Here are the specific 10-year sources of revenue reduction as estimated by the Joint Committee on Taxation:
1.
$172.2 billion from
repealing the ACA's 3.8% tax on wealthy people's investment income.
2.
$144.7 billion from
repealing the annual fee on health insurance premiums.
3.
$125.7 billion from
lowering the income percentage threshold from 10% to 5.8% for deducting medical
expenses; this was designed to give Senate Republicans budgetary room to
sweeten premium tax credits for older consumers.
4.
$66 billion from delaying
until 2026 the so-called Cadillac tax on high-value employer health plans.
5.
$58.6 billion from
repealing the additional 0.9% Medicare payroll tax on wealthy people.
6.
$28.5 billion from
repealing the annual fee on sales by manufacturers and importers of branded
drugs.
7.
$19.6 billion from
repealing the 2.3% excise tax on sales by medical-device manufacturers and
importers.
8.
$19.4 billion from
repealing limits on contributions to employers' flexible spending health plans.
9.
$5.6 billion from allowing
nonprescribed over-the-counter drugs to be paid for from tax-sheltered health
savings accounts and flexible spending accounts.
10.
$505 million from repealing
the $500,000 annual deduction for health insurers in compensating individual
executives.
Harris
Meyer is a senior reporter providing news and analysis on a broad range of
healthcare topics. He served as managing editor of Modern Healthcare from 2013
to 2015. His more than three decades of journalism experience includes
freelance reporting for Health Affairs, Kaiser Health News and other
publications; law editor at the Daily Business Review in Miami; staff writer at
the New Times alternative weekly in Fort Lauderdale, Fla.; senior writer at
Hospitals & Health Networks; national correspondent at American Medical
News; and health unit researcher at WMAQ-TV News in Chicago. A graduate of
Northwestern University, Meyer won the 2000 Gerald Loeb Award for Distinguished
Business and Financial Journalism.
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