Study Shows ACA Repeal Means Nearly $600 Billion in Tax Cuts For Corporations and the Wealthy
“Grotesque Transfer” Takes Money from Millions of Working Families and Gives it to the Economic Elite
Washington, D.C. – If Congress repeals the Affordable Care Act (ACA) based on the same legislation vetoed by President Obama last January, it will result in nearly $600 billion in tax cuts and tax breaks over 10 years for wealthy people and large corporations, according to an online report released today by Families USA.
“This is a grotesque transfer of wealth that is paid for by taking health care away from millions of Americans and lining the pockets of the wealthy elite,” said Ron Pollack, executive director of Families USA. “It’s a betrayal of the ‘the forgotten men and women of our country’ to whom President-elect Trump paid homage on Election Day.”
Following is the breakdown of the tax breaks and give aways, as documented in the study.
- $345.8 billion for individuals above $200,000 and families with incomes above $250,000.
- $247.4 billion for insurers, drug manufacturers, and other health care corporations.
For the millions of Americans who now receive tax credits under the ACA, repeal will actually mean a tax increase when their tax credit premium subsidies are eventually taken away. On top of that, the tax breaks for the wealthy and corporate interests – which take effect almost immediately – will rob the health system of the money needed for any meaningful replacement legislation Congress might later consider.
“These numbers show why it is imperative for lawmakers to act on a comprehensive replacement before they take health insurance away from more than one in ten non-elderly Americans,” Pollack said. “A vote for repeal-only, without saying anything about what replaces current insurance – and how it would be paid for – would show appalling disregard for the health care and economic security of millions of families.”