Are the ObamaCare repeal tax cuts just giveaways to the rich?

Source: Cato Institute
by Jeffrey Miron

“In the debate over the repeal of Obamacare, much opposition has focused on the suggestion that the Republicans’ proposed cuts in subsidies and coverage aim to fund big tax cuts for high-income taxpayers. The House and Senate health care bills adjust or repeal many Obamacare taxes, but the main ones being castigated as ‘handouts to the rich’ are the elimination of the 3.8% Affordable Care Act (ACA) hike in the tax rate on investment income and the 0.9% increase in the Medicare tax on wage and salary income for high-income earners (over $200,000 for an individual or $250,000 for a family). The Tax Policy Center has estimated that, by 2026, people who earn $5 million or more would, on average, see their taxes cut by almost $250,000. This criticism of the Republican bills is understandable but wrongheaded.” (06/28/17)