Report: The Rich “Could Grab Up to $40 Billion in Tax Breaks” If Republicans Overturn the Affordable Care Act

A new CNBC report this week explains how the GOP lawsuit enabled by Senate Republicans would give a massive windfall of “up to $40 billion in tax breaks” to the wealthiest households if the Supreme Court rules in favor of dismantling the entire health care law that protects people with pre-existing conditions and expanded Medicaid coverage.

Overturning the Affordable Care Act “would be a huge tax cut, principally on high-income people,” according to an expert from the nonpartisan Tax Policy Center. While millions of Americans would lose their health coverage, “higher-income households would reap significant tax benefits” and could save between $35 billion to $40 billion annually. Not a single incumbent GOP senator has taken real action to oppose their party’s lawsuit to strike down the entire health care law, and every Senate Republican voted for or supports the 2017 tax bill that “sparked” this dangerous lawsuit.

“Senate Republicans’ endless political crusade to repeal the health care law is all about furthering their agenda of helping their special interest allies and ultra-wealthy donors ‘come out ahead’ at the expense of their constituents,” said DSCC spokesperson Helen Kalla. “Ripping health coverage and protections for pre-existing conditions away from millions of hardworking families in the middle of a pandemic while giving billions in tax breaks to the rich is deeply out of touch with the struggles so many are facing right now, and voters won’t forget.”

IN CASE YOU MISSED IT

CNBC: High-income people could grab up to $40 billion in tax breaks if the Affordable Care Act is overturned
By Darla Mercado
July 20, 2020

Key Points:

• High-income households will come out ahead – at the possible expense of the poor – if the Supreme Court overturns the Affordable Care Act.

• Last month, the Trump administration asked the Supreme Court to do away with the health-care measure, arguing that the law became unconstitutional when Congress eliminated the penalty for not having coverage back in 2017.

• While millions of people stand to lose their insurance coverage without the health-care law, higher-income households would reap significant tax benefits.

• They could save between $35 billion to $40 billion in taxes annually, according to Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.

• “Repealing or overturning the Affordable Care Act would be a huge tax cut, principally on high-income people,” he said.

• The highest income 0.1% of households — that is, people with annual incomes over $3 million — would receive tax cuts averaging $198,000 a year, according to the Center on Budget and Policy Priorities.

• “It’s potentially a lot of money, even for the average wealthy person,” said Gross. In fact, prior to July 15, taxpayers hurried to submit protective claims for the 2016 tax year with the IRS, he said. Filers have up to three years to claim refunds for prior years.

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