Tax season is upon us however this year, a new presidential administration and the fate of the Affordable Care Act has many asking about health care law and taxes. Will there be a penalty if someone doesn’t have health insurance? If former President Barack Obama’s health law is reversed, how will it impact taxes?
Join the Federal Bar Association on March 3 to examine recent developments in the tax code and proposed changes to health care tax credits as you connect with colleagues and policymakers for a full-day educational forum that examines how the changing tax landscape affects your clients and practice. It’s not too late to sign up for this timely conference. Register today for the Tax Law Conference at www.fedbar.org/taxlaw17.
Republicans and President Donald Trump have been backpedaling from their promise to swiftly and wholly eliminate Obama’s law. Still, conservatives have made a concerted effort to erase Obama’s health care overhaul, but they are divided over whether to repeal the levies the law imposes to finance its expanded coverage for millions of Americans.
$1.1 trillion is the 10-year price tag the nonpartisan Congressional Budget Office puts on revenue the government would lose if the Act’s taxes on wealthy people, the insurance and pharmaceutical industries, and others were eliminated. Additionally, if the taxes are repealed and money is required for a replacement plan, will it be paid with higher federal deficits? Do Republicans significantly cut Medicaid, which provides health care for low-income people, or carve savings from Medicare, which serves the elderly? These are all issues that will be explored fully on March 3.
A new study from the Center on Budget and Policy Priorities shows the 400 richest Americans, a group whose average annual income tops $300 million each, would get a combined annual tax cut of $2.8 billion if the Affordable Care Act is repealed. Meanwhile, millions of low-income Americans might see their taxes go up if the law is repealed, since they would lose insurance premium tax credits that were enacted as part of the bill.
Besides financing their replacement programs, Republicans will need additional billions to deliver on their pledge to not abruptly halt coverage for the 20 million people currently receiving it under Obama’s law. That means covering them during a transition period until new GOP programs commence. The health insurance industry has warned it will need billions in federal payments that companies currently receive to continue during the shift. The money subsidizes out-of-pocket costs like deductibles and copays for millions of lower-earning customers.
As Republicans move to overhaul the health law and health care tax credits, it is an auspicious time to gain valuable insight from accountants, government officials, and attorneys. Join the Federal Bar Association Section on Taxation at the Ronald Reagan Building and International Trade Center in Washington for the 41st Annual Tax Law Conference on March 3. Register today at www.fedbar.org/taxlaw17.
Stacy Slotnick, Esq. holds a J.D., cum laude, from Touro Law Center and a B.A., summa cum laude, from the University of Massachusetts Amherst. She performs a broad range of duties as an entertainment lawyer, including drafting and negotiating contracts; addressing and litigating trademark, copyright, patent, and other IP issues; and directing the strategy and implementation of public relations, blogging, and social media campaigns.