How it works now: Obamacare’s architects cobbled together a mix of taxes to offset the cost of subsidizing insurance for tens of millions of low- and moderate-income Americans.
That has meant some new taxes on insurance companies and medical device makers (both of which, it was reasoned, were benefiting from getting new customers through the law).
Wealthy Americans are paying more too. Families making more than $250,000 a year have seen their Medicare payroll taxes increase because of Obamacare.
How it would change: The House Republican plan scraps the taxes.
That’s a big tax cut for the medical device and insurance industry. Insurers say lower taxes will allow them to charge lower premiums.
It’s also a very large tax cut for the wealthiest taxpayers, who would no longer be subject to the Medicare payroll surtax.
The House legislation does not include any new tax to offset the loss of revenue from cutting the Obamacare taxes. LA Times 3.8.2017