GOP to Add O’Care Individual Mandate Repeal to Tax Bill, Give Savings to Families

By NTK Staff | 11.15.2017 @9:00am
GOP to Add O’Care Individual Mandate Repeal to Tax Bill, Give Savings to Families

The Wall Street Journal reported on Wednesday morning that savings from repealing the individual mandate of Obamacare will go straight to middle-class taxpayers and families.

The Senate GOP has added repeal of Obamacare’s individual mandate to their tax cut plan, and they plan to give the estimated $338 billion in 10-year savings to middle-class taxpayers in two major ways.

The Wall Street Journal had details on Wednesday morning of where the savings from mandate repeal will go in the latest version of the GOP tax bill:

  • A 20-percent increase ($350) in the proposed child tax credit, from $1,650 to $2,000
  • Rate cuts to three middle-class tax brackets: from 32.5 percent to 32 percent, 25 percent to 24 percent, and 22.5 percent to 22 percent

This will challenge arguments from Senate Democrats, first and foremost Senate Minority Leader Chuck Schumer (D-NY), that the inclusion of individual mandate repeal is a ‘scam’ to “get #Trumpcare passed.”

The current penalty for individuals who don’t purchase health insurance is 2.5 percent of household income or $695 per adult, whichever is higher. Savings from repeal would come from people opting not to buy health insurance and the government saving money on subsidies for people who currently buy insurance.

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