Letter: 'Repeal and replace' plan means tax cuts for the rich, fewer health benefits for the American people
The Republican plan to repeal the ACA is approximately 60 pages long. Six of these pages deal with lottery winners. The remaining approximately 54 pages deal with the rest of the repeal and replace plans of the Republicans.
Part of their plan deals with tax cuts. According to the Republican plan "Generally, employers may deduct remuneration paid to employees as ordinary and necessary business expenses." The ACA capped this deduction for CEOs of insurance companies at $500,000. The Republican plan would (in 2018) repeal the $500,000 cap on insurance CEOs, effectively allowing much larger deductions and much lower taxes for the CEOs of insurance companies. This represents a large tax cut for the rich. Why more new tax cuts for the rich????
Another tax cut for the rich in the Republican plan works as follows: Taxes were enacted under the ACA in order to fund many of the benefits of the ACA. The taxes were chosen carefully. It was deemed that the companies that would profit the most under the ACA (the insurance companies and the medical device companies) should help fund the benefits of the ACA.
The insurance companies were guaranteed millions of new customers. The medical device companies were guaranteed thousands of new customers. They were the most likely to benefit under the ACA.
Thus they are paying taxes to support the ACA. Also, the rich have benefited much more than anybody else in the American economic system over the last 30-plus years. Thus they are paying taxes to support the ACA. If the ACA gets repealed and if these taxes go away, this would represent a very large tax cut for the rich, for the insurance companies and for the medical device companies.
It would also mean that much of the money supporting the benefits of the ACA would go away. If a large source of the funding goes away, what will happen to the benefits? Once again, tax cuts for the rich and less benefits for the American people.—Robert Peterson, Henning