Society

GOP Health Care Bill Would Reduce Taxes For The Wealthy

| by Lauren Briggs

The American Health Care Act, which passed through the House of Representatives on May 4, could cut an estimated $600 billion in taxes while still reducing the deficit, but most Americans will not see any of those savings.

Those tax cuts come out to $5,000 per family on average, but the majority of the saved money goes to companies and the wealthy, ultimately saving the top 0.1 percent -- those who make more than $3.75 million per year -- more than $165,090 annually, reports Vox.

For example, the AHCA would get rid of a 0.9 percent tax on wages above $200,000 for single people or $250,000 for those who file jointly, and it also cuts out a 3.8 percent tax on capital gains, dividend and interest income for single people who make more than $125,000 and families who make more than $250,000.

Pharmaceutical companies, medical device makers and health insurance companies will see their taxes reduced as well.

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Meanwhile, those who make $208,500 or less per year -- the bottom 90 percent  -- would save an average of $0, with the exception of a handful of people.

Because the plan brings tax and deficit savings, Vox points out that those tax cuts will ultimately reduce the amount of money for health care, meaning a worse health care system in general.

After passing through the House, the AHCA will head to the Senate, where it is expected to face more opposition than it did in the lower chamber, notes Business Insider. Republicans were able to get enough votes after adding an amendment clarifying the policy on pre-existing conditions.

"Thanks to the leadership of President Donald Trump, welcome to the beginning of the end of Obamacare," Vice President Mike Pence said of the bill's passage through the House, according to Business Insider.

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The bill passed little more than a month after GOP leadership pulled an earlier draft of the Affordable Care Act repeal and replacement from the House floor, as it did not have enough support to make it through the chamber at the time.

"It's going to be an unbelievable victory when we get it through the Senate, and there's so much spirit there," said Trump in the White House Rose Garden after the bill passed the House.

Trump also thanked House Speaker Paul Ryan, a Wisconsin Republican, for spearheading the bill and said that the ACA is "essentially dead," short of insurance companies receiving "a lot of ransom money."

"What we have is something that is very, very, incredibly well-crafted," he added.

​Sources: Vox (2), Business Insider / Photo credit: U.S. Congress/Wikimedia Commons

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