Tax Credits Inflame Internal Fight Over Leaked GOP Obamacare Repeal Draft
By TIERNEY SNEED Published MARCH 1, 2017, 6:00 AM EST
A leaked draft of legislation that represents the closest that congressional Republicans have come to signaling their way forward on repealing the Affordable Care Act is already up in flames, in part due to a revolt from the caucus hard right wing over a proposal that has been a mainstay of GOP health plans in recent years.
The objection by conservative members and outside groups to the draft proposal and especially its inclusion of tax credits for Americans to use on individual insurance shows how far GOP lawmakers still have to go in resolving the differences within their party over basic health policy questions.
Its a real problem for conservatives because it represents a new entitlement, Rep. Mark Sanford (R-NC), who has introduced his own Obamacare replacement bill alongside Sen. Rand Pauls (R-KY) in the Senate, told reporters Tuesday. From a numerical standpoint, we cant pay for the entitlements already on the table. So the idea of adding a new one would be more than problematic, Sanford said.
The current squabble, which is just one of many surrounding the politics and policy particulars of repeal and replace, is centered on the refundable tax credits for Americans to use on insurance in the individual market. Individuals under 30 would receive a $2,000 annual tax credit, under the draft proposal, and that amount would increase with age. Unlike Obamacares tax subsidies, they dont vary by income -- a wealthy person would get the same tax break as a poor one -- and they also dont vary by geography, meaning in some places where premiums are lower the credit will go farther than others.
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