Washington, D.C. — New analysis from the Center for American Progress finds that repealing the Affordable Care Act (ACA) would result in a massive transfer of money from low- and moderate-income Americans to high-income Americans. The analysis estimates that if the ACA were to be repealed, the richest 100 billionaires in the country would stand to receive a total tax cut of $12.6 billion on their gains accruing in 2020—a small portion of their total earnings.
Because the ACA was largely funded by a tax on wealthy corporations and individuals, these groups would disproportionately benefit if the law were overturned. In addition to the tax cuts billionaires would receive on their capital gains, the nonpartisan Tax Policy Center estimates that repealing the ACA’s taxes would give the richest 0.1 percent of Americans—people making more than $3.8 million annually—tax cuts averaging $198,250. Manufacturers and importers of prescription drugs would also stand to reap a $2.8 billion annual fee on branded prescription drugs, which is paid by those firms according to their market share.
At the same time, tens of millions of low- and moderate-income people would lose their access to health insurance or see their premiums increase. The ACA is a pillar of financial stability for tens of millions of Americans. It supports low- and moderate-income people by ensuring access to reliable and affordable health insurance. CAP estimates that more than 2o million primarily low- and moderate-income people would lose insurance entirely if the ACA were repealed. An additional 9.2 million would see dramatic increases in premiums. The analysis finds that disproportionately low- and moderate-income people would either lose health insurance entirely or see a dramatic spike in premiums.
“Over the past three-and-a-half years, the Trump administration has advanced policies that have favored wealthy individuals over low- and moderate-income Americans. This administration’s attempt to overturn the ACA in a case that will be heard by the Supreme Court on November 10 is no different,” said Andres Vinelli, vice president for Economic Policy at CAP.
Read: “Repealing the ACA Would Put Millions at Risk While Giving Big Tax Cuts to the Very Wealthy” by Seth Hanlon, Andres Vinelli, and Christian E. Weller
For more information on this topic or to speak to an expert, contact Julia Cusick at gro.ssergorpnacirema@kcisucj.