The Center for a Free Economy believes in a health care system which is focused on the empowered patient and her doctor. Neither the government nor big business forces in the healthcare system should not get between patients and providers. Families need the means to take control of their own health care decisions. It’s also important to remember that health care policy these days is tax policy, and vice-versa.
Recent News about Healthcare Policy:
By Ryan Ellis One of the best conservative elements of Obamacare repeal in general and the House-passed "American Health Care Act" in particular is the repeal of the twenty new or higher taxes in Obamacare, totaling nearly $1 trillion over a decade. This tax relief has come under fire in recent days by left wing columnists, crony capitalist in chief Warren Buffett, late night talk show host and nouveau health policy expert Jimmy Kimmel, and even Republican senator Bill Cassidy of Louisiana. Meanwhile, Republican Members of Congress in town halls across the country are, to put it mildly, having to gird their loins and sharpen their talking points when it comes to health care. Everyone needs to be on board for what will be a very tough policy fight, or we endanger losing the tax relief component of Obamacare repeal, which in turn would make tax reform far less likely. Now would be a very bad time [...]
By Ryan Ellis Big news tonight broken by Jennifer Haberkorn, Rachael Bade, and Josh Dawsey of Politico. Over the weekend, the House conservative Republican Study Committee negotiated a series of rightward-directed improvements to the American Health Care Act (AHCA). According to Politico, one of those changes is a major upgrade in the tax policy side of the bill. Under the version of the bill reported out by the House Ways and Means Committee, virtually all of the new or higher taxes in Obamacare would be repealed prospectively, as of January 2018. The improved bill now makes that tax relief effective retroactively, to January 2017. Nowhere is this a bigger deal than for savers and investors. One of these Obamacare tax increases is the hated "net investment income tax" or NIIT. The NIIT slaps a 3.8 percentage point surtax on capital gains, dividends, interest, and almost all other yields on investment. That's why [...]
By Ryan Ellis The official score of the American Health Care Act (AHCA) was released today by the Congressional Budget Office (CBO). It's a net spending cut of over $1.2 trillion and a net tax cut of nearly $900 billion over the next decade. It reduces the debt and deficits by over $300 billion in that time. As expected, the score shows that the AHCA would be a large and permanent tax cut for families and employers. Below are some preliminary thoughts: The net tax cut in the bill is $882.8 billion over the 2017-2026 period. This should lower the tax revenue baseline considerably, perhaps even by half a percentage point of the economy The most pro-growth tax cut in the bill is the elimination of the so-called "NIIT" or "net investment income tax." It adds on a 3.8 percentage point surtax on savers and investors. By eliminating NIIT, the bill cuts [...]
By Ryan Ellis One of the most controversial provisions (for conservatives) of the American Health Care Act (aka Obamacare repeal and replace) is the creation of an advanceable, refundable tax credit for individuals to purchase health insurance. It would be available to anyone not offered health insurance at work, or eligible for Medicare or Medicaid. It would be bigger for older folks and smaller for younger folks. It would means test starting at $75,000 ($150,000 for married couples). The credit would be available month to month to offset health insurance premiums as a direct offset. It is paid for by repealing Obamacare. Conservatives are wrong to be opposed to this concept. It is virtually identical to how school vouchers work. Here's why. School vouchers are free money to people who didn't earn it. Because health credit recipients have lower incomes, they are likely to get this credit nearly entirely on the refundable (outlay) [...]
By Ryan Ellis The House Ways and Means Committee just released their half of the Obamacare "repeal and replace" bill. They are in charge of the tax part. Here is a quick summary: Nearly all Obamacare taxes repealed.The bill repeals all Obamacare taxes starting in 2018. The biggest ones here are the 3.8 percentage point Medicare payroll tax bracket, the 3.8 percent surtax on savers, the "high medical bills tax," the "medicine cabinet tax," a flurry of tax increases on health savings accounts (HSAs) and flexible spending accounts (FSAs), the medical device tax, and a series of tax hikes on various health industries. One missing tax repeal is the economic substance doctrine, but that may have to do with the "Byrd rule" limitation on reconciliation bills. Individual mandate and employer mandate retroactively repealed. These two Obamacare taxes have been zeroed out and retroactively applied to 2016 onward. If necessary, families and businesses will be [...]
By Ryan Ellis Breathless press accounts in Washington, D.C. recently would leave one believing that Obamacare "repeal and replace" is dying or at the very least losing momentum. In fact, it's picking up a head of steam as we move into February. Much like a duck paddling ferociously under the water while presenting the image of a serenely floating mallard, Obamacare's assisted demise is lustily grinding away in the back rooms of the United States Congress. Nowhere is this momentum more evident than in the tax area. The way things are shaping up, Obamacare repeal and replace is going to turn into a huge tax cut. Those reading the tea leaves would do well to consult two sources as to how and why: the 2015 repeal bill, and the House GOP "Better Way" healthcare blueprint. Congress' original plan was to send a near carbon copy of the 2015 Obamacare repeal reconciliation bill (vetoed by [...]