Republicans Between Rock And Hard Place When It Comes To Health Law’s Taxes
Lawmakers have to decide if they should immediately cut off the taxes that would be needed to fund a transition period between repeal and replace and be left scrambling to pay for Americans' subsidies.
The Wall Street Journal:
Health-Law Taxes Complicate GOP’s Repeal Strategy
Republicans eager to scrap the 2010 health-care law are wrestling with whether to immediately cut off the tax revenue it brings in. Among the thorniest issues GOP lawmakers face as they hash out how to try to dismantle the Affordable Care Act is that getting rid of the health law’s taxes now would eliminate a source of revenue they would need to fund the two- or three-year transition period until any replacement plan is in place. Repealing the taxes would throw into question how to fund the subsidies that help many people get health coverage by offsetting their premium costs, health analysts say. (Peterson and Rubin, 1/7)
CQ Roll Call:
Obamacare Tax On Wealthy Sparks Battle Over Fairness
Republicans and Democrats are squaring off in a fight over tax fairness as the GOP develops a timetable for repealing the 3.8 percent surtax on investment income under the health care overhaul. GOP lawmakers have long argued for elimination of the surtax, or the net investment income tax, that applies to income such as interest, dividends and capital gains for individuals making more than $125,000 or couples earning more than $250,000. The levy was created by the health care overhaul to help pay for subsidies and has been championed by Democrats as both a pillar of support for health care coverage and a key component of President Barack Obama’s push to reduce income inequality in part by raising taxes on the wealthy. (Ota, 1/9)