Right-wing anti-government crusader Grover Norquist issued a template opinion piece the other day to North Carolina leaders and voters in support of the tax cut that will be delivered to the wealthiest taxpayers when the Affordable Care Act is repealed.
Norquist was a key proponent of our state’s tax cuts in 2013, arriving on the scene from D.C. to push our local legislators to adopt a proposal that has made it difficult to respond to the needs in our communities and to develop an economic development strategy that recognizes the uniqueness of our state.
The data is quite clear on what the repeal of the Affordable Care Act will mean: a significant tax cut for the country’s wealthiest taxpayers and growth in the country’s budget deficits.
- The Tax Policy Center estimates that millionaires get most of the tax benefit from repealing the Affordable Care Act. A $57,570 tax cut on average would be received by millionaires in 2025, which is more than the total annual income of any family in the bottom two-fifths of the population.
- Repealing the 0.9 percent tax on earnings above $200,000 that is deposited in the Medicare Hospital Insurance trust fund would not only contribute to the tax break for millionaires but would reduce revenues by $123 billion and accelerate the exhaustion of the Health Insurance trust fund.
- The loss of premium tax credits and other ACA provisions will hurt families’ ability to afford health coverage. Twenty-nine percent of North Carolinians are eligible for the premium tax credit that helps pay for health care coverage, a full 10 percentage points higher than the national average.
The tax components of the Affordable Care Act have made health care affordable to more Americans and North Carolinians and, in so doing, addressed many health care issues. Its effectiveness has led many conservative leaders to embrace the law to serve their citizens and in turn achieve a fiscally responsible approach to supporting healthier communities.