ObamaCare has not been good for everyone. There are a few people that it has helped, but it has increased the cost of medical insurance and healthcare for the majority of Americans. Some Americans are now paying more for health insurance than they pay for their mortgage and car payment combined. If they don’t pay for health insurance, they are fined and take the risk of major medical expenses. So what happens if ObamaCare is repealed?
The American Spectator posted an article today about the impact of repealing ObamaCare.
The article states:
Now that the last significant obstacle to Obamacare repeal is finally packing his bags and preparing to vacate the White House, the defenders of the law are desperately casting about for some talking point that will convince the public that the risibly titled “Affordable Care Act” should be left in place. Having failed to get anywhere with doomsday studies claiming that repeal will render tens of millions uninsured, they have reverted to an old lefty refrain. The Republicans, they tell us, are in a rush to get rid of Obamacare because they want to give tax cuts to the rich.
We’ve heard that song before.
The article explains the actual facts:
In fact, as Howard Gleckman reluctantly admits at the TPC blog, “Overall, dumping all the ACA taxes would cut taxes by an average of $180 per household in 2017 — a 0.3 increase in after-tax incomes.” So, how have the social justice warriors in the media concluded that Obamacare repeal is a tax cut for the rich? The answer lies in the way they have chosen to define the word “rich.” All of this journalistic dudgeon is about the repeal of one tax on investment income aimed at Americans with annual incomes exceeding $200,000 (individuals) and $250,000 (couples).
…A far less obscure “tax” is that which you must pay if you fail to comply with Obamacare’s individual mandate. Obamacare’s apologists thought Chief Justice John Roberts was doing them a favor when he “fundamentally transformed” this fine into a tax in 2012, but that surreal ruling is now coming back to haunt them. In addition to the schadenfreude Obamacare opponents will enjoy when that tax is cut, the TPC study clearly shows that those in the lowest income brackets will benefit the most from the extirpation of this most hated provision of the unpopular law.
This is not what we are being told by the Democrats and their media co-conspirators. Using typically Orwellian logic, they tell us that repealing Obamacare’s subsidies will somehow increase taxes on the poor. In reality, these cuts will merely stop forcing hardworking Americans to pay for coverage they themselves cannot afford because of the “Affordable Care Act.” Meanwhile, these Obamacare dead-enders also insist that any revenue policy that fails to punish successful Americans amounts to “tax cuts to the rich.” This is why their side keeps losing elections.
There are a few things to note here. Does it strike you as odd that those claiming that the Republicans support ‘tax cuts for the rich’ are Democrats whose net worth is generally measured in millions? Is it just a coincidence that their wealth and income are structured so that they avoid the taxes that both the ‘rich’ and the poor pay? I would also like to note that the definition of ‘rich’ is very flexible in the minds of those screaming ‘tax cuts for the rich.’ Because much of tax revenue comes from the Middle Class, many middle-class people in areas where the cost of living is unusually high often find themselves classified as ‘rich.’ When the income tax was initially introduced in 1913, the top bracket was 7 percent (applied to incomes over $500,000–when adjusted for inflation, that number is actually $12 million). The lower bracket was a 1 percent tax. For an example of how the government views income taxes, I suggest you read “If You Give A Mouse A Cookie” by Laura Joffe Numeroff and Felicia Bond. The mouse’s perspective mirrors the government’s perspective on taxing Americans.
At any rate, repeal of ObamaCare would be a blessing for all of us. A healthcare system based on free-market principles would be better able to meet the needs of the both the ‘rich’ and the poor. Some of the things that would work in a replacement for ObamaCare might be healthcare that goes with the person–not the employer, tax breaks for the cost of individual healthcare would be a good idea, portability across state lines would increase competition and lower prices, risk pools for preexisting conditions might also help. There are many things that could be done to improve healthcare in America. ObamaCare was not one of them, and going to a single-payer, government system would not be helpful either. It is time for the business people that Donald Trump has nominated to his cabinet and the people in Congress who understand economics to put together a healthcare plan for America that will benefit all of us.