Political Hot Potato: GOP Plan That Guts ACA Benefits, Would Meanwhile Keep the Act’s Tax Revenues

One of the ideas Republicans are considering as they contemplate dismantling the ACA is to scrap the benefits, but keep the tax revenues for the program rolling into federal coffers, according to the Wall Street Journal. Legislators in favor of this say that the money will be needed to finance whatever comes after the ACA, after a two- or three-year transition period. The money will also help defray costs for people by helping to pay for their premiums.

Not everyone is thrilled.

Rep. Jim Jordan (R., Ohio) didn’t mince words. “We’re going to take away the benefits but keep the taxes?” he tells the Wall Street Journal. “Are you kidding me? That’s the craziest thing I’ve ever heard.”

Congressional scorekeepers estimate that repealing the taxes that pay for the ACA would reduce revenue by more that $1 trillion over a decade. As the Wall Street Journal reports, this could be politically dangerous for the GOP.

“The taxes in question largely fall into two camps: those directly related to health-care costs, such as the so-called Cadillac tax on expensive, employer-provided health-insurance plans, and those levied on wealthy individuals to help pay for the law’s expanded coverage. Because of that, Democrats have said the GOP effort to repeal the health law is really aimed at slashing taxes for the affluent.”

Source: Wall Street Journal

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