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Saturday, March 11, 2017

Wealthy Would Get Billions in Tax Cuts Under Obamacare Repeal Plan - The New York Times

"Two of the biggest tax cuts in Republican proposals to repeal the Affordable Care Act would deliver roughly $157 billion over the coming decade to those with incomes of $1 million or more, according to a congressional analysis.

The assessment was made by the Joint Committee on Taxation, a nonpartisan panel that provides research on tax issues.

It is not unusual for tax cuts to benefit mostly the wealthiest, but still save some money for a majority of Americans. But the benefits of these reductions would be aimed squarely at the top.

The provisions would repeal two tax increases on high earners enacted in 2010 to help pay for the Affordable Care Act: an increase in capital gains taxes and other investment-related income, and a surcharge on Medicare taxes.

People making $200,000 to $999,999 a year would also get sizable tax cuts. In total, the two provisions would cut taxes by about $274 billion during the coming decade, virtually all of it for people making at least $200,000, according to a separate assessment by the committee.

‘Repeal-and-replace is a gigantic transfer of wealth from the lowest-income Americans to the highest-income Americas,’ said Edward D. Kleinbard, a professor at the University of Southern California law school and former chief of staff for the Joint Committee on Taxation.

Tax economists point out that even tax cuts for the wealthy can have indirect benefits for others. For example, the additional cash can prompt extra spending and extra hiring.

That said, ‘most of the benefit of getting rid of those two taxes would go to wealthy people,’ said Joel Slemrod, a professor at the University of Michigan Ross School of Business and former senior staff economist for President Ronald Reagan’s Council of Economic Advisers. ‘It’s not significant for me to add a caveat.’"

(Via.). Wealthy Would Get Billions in Tax Cuts Under Obamacare Repeal Plan - The New York Times:

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