Quick Facts About the Tax Cut and Jobs Act
After years of failing to destroy the Affordable Care Act (ACA), Republics in Washington are again attempting to undermine national health legislation through their new tax reform bill.
Released last Thursday by the House Ways and Means Committee, the Tax Cut and Jobs Act (TCJA) is said to raise deficits by nearly $1.5 trillion over the next ten years. However, tax policy researchers at the Urban Institute and Brookings Institution have estimated that the true costs would be around $2.4 trillion. According to Matt Fiedler, an economist at the Brookings Institution:
“This is clearly a package that will increase the deficit significantly. Ultimately the lower revenues need to be financed by reduced federal spending. Since healthcare programs are a large portion of the budget, this will create pressure for cuts in those programs.”
Below is an outline of how the bill might hinder provisions codified under current healthcare legislation:
- $28 billion could automatically be cut from the Medicare program early next year
- Medicaid could be slashed by more than $1 trillion over the next 10 years (more than that cuts proposed under both the late Graham-Cassidy Bill and the American Health Care Act (AHCA)
- The ability to itemize and deduct medical costs greater than 10% of out-of-pocket costs could be eliminated
- Improvements for disability access could be reduced
- The Children’s Health Insurance Program (CHIP) could not be renewed
- Outreach for Obamacare will be cut
Congressional Republicans are once again hoping to quickly pass the bill through the expedited budget reconciliation process. While Democrats are planning to challenge this process as a violation of Senate rules in order advance the reform legislation, if passed, large Healthcare companies and executives could see significantly lower business and personal taxes at the cost of threatening reductions to our national Medicare and Medicaid programs.
Have an opinion on the tax cuts? We want to hear from you! Contact Rick Keaton to voice your opinions on the legislation.