Senate Announces Healthcare Bill
What you need to know
On Thursday, June 22nd, Republican Senators unveiled the text of their long-awaited healthcare bill. This bill comes after the House proposed a health care bill and contains some key similarities and differences to the House’s bill. Below is a brief summary of some of the most notable tax aspects of the Senate bill.
First off, the Senate bill proposes to eliminate two of the earliest taxes imposed on individuals in connection with the Affordable Care Act. The first of these taxes that would be eliminated is the Net Investment Income Tax, which currently imposes a 3.8% tax on investment income above $200k, or $250k of income, depending on filing status. The second tax to be eliminated is the Medicare surtax, which currently imposes a 0.9% Medicare surtax on wages above the same $200k or $250k income levels. While their elimination would reduce taxes for a number of American households, it comes with the offset of highly-reduced federal Medicaid funding.
Next in line is the individual shared responsibility provision, which requires most all taxpayers to either have qualifying insurance, pay a penalty, or claim an exemption. This provision would be eliminated under the Senate bill.
One final tax-related item is the employer shared responsibility provision, which requires most employers with 50 or more full-time/full-time equivalent employees to offer their full-time employees qualified health insurance. This provision would also be repealed under the Senate bill.
In closing, one important note is that this bill has not been enacted and will likely receive a number of alterations in its course to potentially becoming law. However, based on the previous healthcare bill drafted by the House, the above repeals of taxes and provisions will likely remain on any revised bill.
If you have any questions about the Senate bill, please reach out to me at 408.286.7780, or at email@example.com.