Piggies at the Trough: ACA Repeal Delivers Billions in Tax Cuts to the Top.

pig-at-trothSo it begins. If you are among America’s wealthiest, the first wave of Republican tax cuts is about to come your way, but at a terrible cost: You will receive an immediate, billion dollar windfall tax cut when millions lose their ACA health insurance – and for some, their health and their lives!

And it gets worse. While padding the wallets of America’s billionaires, Obamacare’s repeal/delay will significantly raise taxes on millions of low and moderate income families. Brandon DeBot of the ever reliable Center on Budget and Policy Priorities explains below.

With so many millionaires, billionaires and corporations about to benefit from wave after wave of Republican tax cuts, the Piggies are gathering at the trough for a looooong, extended feast. And what is a corporate or human Billionaire Piggy going to do with even MORE money at their disposal?  Well, it’s not too likely that those already flush with cash will spend their billions in the U.S. IMMEDIATELY to stimulate economic growth (so much for that favorite and fundamental rule of economics, the multiplier effect, Piggies, when your windfalls aren’t quickly spent here at home).

Billionaire Piggies also can’t provide the kind immediate economic stimulus that Obamacare now does through spending for/at clinics, hospitals, doctors and specialists, dentists, PA’s, nurses, orderlies, hospital cafeteria workers, med administrators and staff, med suppliers, med device manufacturers, drug stores, drug companies (Yuck!), home health care services, and on and on. Now that’s stimulus! That is a multiplier effect!

Ironically, one way this Piggy tax giveaway WILL stimulate the economy is by making caring Americans lucky enough to retain their health insurance sick to their stomachs and in need of immediate health services.

ACA Repeal Would Deliver Billions in Tax Cuts to the Top

By Brandon DeBot

Republicans’ planned bill to repeal the Affordable Care Act (ACA), which is expected to be similar to the repeal bill that President Obama vetoed in January 2016, would give an immediate windfall tax cut totaling billions to the highest-income Americans by eliminating two Medicare taxes — the additional Hospital Insurance tax and the Medicare tax on unearned income — that both fall only on high-income filers, as we explain in two new papers. At the same time, Republicans’ plans for ACA “repeal and delay” would likely significantly raise taxes on about 7 million low- and moderate-income families by eliminating their premium tax credits and would threaten existing coverage for millions more.

The size of the tax cuts for the highest-income households is staggering. Millionaire households would reap a full 80 percent of the tax cut from repealing these two provisions in 2017, as our first analysis explains using Tax Policy Center (TPC) estimates. Their tax cuts would average $49,370 apiece.

The very highest-income households would benefit even more. The top 400 highest-income filers had adjusted gross incomes averaging $318 million in 2014 (the last year for which data are available), according to the Internal Revenue Service. If their income levels and income sources in 2017 are similar to those in 2014 and the ACA’s Medicare taxes on high-income households are repealed, our second analysis estimates that:

The top 400 filers will get tax cuts averaging roughly $7 million apiece;
They will receive a net total of about $2.8 billion in tax cuts — roughly $28 billion over ten years if these levels remain similar; and The incomes of the top 400 after federal income taxes would rise by almost 3 percent.

Meanwhile, the roughly 160 million households with incomes below $200,000 would get nothing from the repeal of these two taxes. In fact, ACA repeal would significantly raise taxes on about 7 million low- and moderate-income families due to the loss of their premium tax credits — worth an average of $4,800 in 2017 — that help them buy health coverage through the health insurance marketplaces and afford to go to the doctor when needed.

The total tax cut for the top 400 is roughly the value of premium tax credits that 813,000 people in the 20 smallest states and Washington, D.C. would lose combined if the ACA is repealed without a replacement (see graph).




Fight the Congressional Recess Madness: Attend a Town Hall Meeting

 The sequester cuts in medical research, public health programs and global health funding significantly diminish the likelihood of there being an AIDS free generation anytime soon. This is unacceptable, but there is something YOU can do. It is August and Congress is now on Summer recess. The time of year when all good congresspeople return home to meet their constituents. That means that at congressional town Hall meetings across the country, crazed constituents are showing up to tell their representatives that either Obamacare, gay marriage, food stamps or federal reserve policy are one of the Four Horsemen of the Apocalypse. At times it can be amusing to watch some of these wing-nuts spew their blatant idiocy. Often they do a disservice to the causes and political affiliations they represent.

However, with so much at stake do you believe you should be sitting back and not participating? Do you want to risk the possibility that right-wing loons like the one in the video set the political agenda for members of congress such as the spineless Rep. Martha Roby of Alabama?

Well then, how about showing up at your representative’s town hall meeting to bring some sanity into the conversation? That includes talking about ending a pandemic that otherwise will cost tens of millions of lives and billions and billions and billions more in dollars. Tell those attending, including your representative, that the sequester must be overturned and funding put into programs that will end AIDS in our lifetime.

town-hall-meetingThe American Public Health Association (ASPH), along with others groups like ACT UP, are calling on supporters of science and reason to fight the congressional recess madness: Attend YOUR representative’s town hall event. They will be running throughout August and into September so check the town hall schedule here. If there is one being held in your vicinity, show up and vociferously counter the distorted and the bizarre with a message of humanity and hope: That we can end AIDS!

Here are some talking points is you are unsure of what to say.  The ASPH also has provided a tool box and talking points.

Or if you can’t attend a town hall meeting you can still write your congressman via the ASPH. Or you can reach your senators’ and representative’s through the U .S . Capitol switchboard at 202-224-3121. You can also find state and district office information and numbers online:

Then after you take action consider joining, or forming, an ACT UP chapter. Make that a priority too.