There is much merit to arguing the problems with the American Health Care Act with regards to its failure to value human life and access to health care. As a health care bill, it fails miserably. As tax policy, it is equally disastrous.
Make no mistake: While wreaking havoc on the health care system and undermining the health and well-being of our neighbors, Congress plans to cut taxes for the wealthy and raise the costs for everyone else.
The repeal of two Medicare taxes paid by high income earners will primarily benefit millionaires. These taxes also achieved greater equity in the treatment of unearned income under the tax code. Repealing those two taxes would mean that a couple making $10 million would see their effective tax rate cut in half.
The changed structure of the tax credits will mean North Carolinians, on average, will see a more than $5,000 loss in help to pay their health care premiums. In fact, the drop for the average consumer in North Carolina ranks us second in the nation. This will likely mean that North Carolina will be hardest hit by increasingly unaffordable health care and also the likelihood of a rise in the number of uninsured costing everyone.
More detailed analysis of the tax credit provision shows that the House’s tax credit structure will primarily benefit North Carolina consumers in more urban counties and those who are younger.
The Kaiser Family Foundation has a series of interactive maps analyzing the impact on North Carolinians in different income and age groups. Many reports have pointed to the nationwide findings: Older, low-income and rural people will lose the most. This is because of the tax credits as well as various other provisions of the House’s plan that allow older people to be charged more, eliminate help for out-of-pocket medical expenses and remove the individual mandate. Read more