Tuesday, March 7, 2017

GOP Healthcare Bill


Seems like most people would get the credit:

...the plan reduces the tax credits for individuals with annual incomes over $75,000 and married couples with incomes over $150,000.

And from a fiscal perspective:

The tax credits proposed by House Republicans would start at $2,000 a year for a person younger than 30 and would rise to a maximum of $4,000 for a person 60 or older. A family could receive up to $14,000 in credits.
There are over 100M households (families?) in the US; so $14k x 100M = $1.4T

Total Medicaid ($360B) + Marketplace payments ($40B) in FY 2016 was = $400B.

Could turn out to be a bonanza in leading USD flow if you consider that USD balances are equivalent to US tax credits.




23 comments:

Michael Norman said...

Tax credits are useless. It's not the same as having someone (the gov't) pay for it via a subsidy.

Matt Franko said...

But Mike if you look at the "Marketplace Payments" they only total $40B for last year so this is not very much...

If EVERYBODY gets an average $3k tax advance from the govt for healthcare with mandatory enrollment then that should be much more than the piddly $40B annual (2016) govt is currently spending via the insurance market subsidies..

85% of US population is below 65 so that is like 250M people at $3K average is $750B which is more than what the ACA marketplace payments paid out + TOTAL Medicaid by $300B

these guys are probably setting up another moonshot just like Bush's "Medicare Rx Drugs" back in 2003 was a huge bonanza for them...

Peterson people are going shit a brick though...

Abram Larson said...

But those tax credits aren't going to people. They are flowing straight through to the insurance companies. It's not like you are I are actually going to have more money in our pocket after all is said and done.

John said...

I see that some vocal Congressional GOPhers have already come out against it, calling it Obamacare 2.0, and that's the vocal ones who are prepared to raise their heads so soon. How many others are going to come out against it in the coming weeks, until the proposed healthcare changes are so diluted that they get pre-Obamacare healthcare?

Michael Norman said...

I'm not sure how it's going to work. Normally, the way tax credits work is you get an automatic deduction on your taxes. Does that mean you have money in your pocket to then go buy insurance? No.

lastgreek said...

May this Canadian ask a silly question?

[silence]

OK, I take that to mean a yes :)

Are these tax credits "refundable tax credits" ?

Noah Way said...

Tax credits don't mean squat to the 47% who don't earn enough to pay federal income tax.

lastgreek said...
This comment has been removed by the author.
lastgreek said...

Does that mean a "no" to my question above, Noah?

lastgreek said...

How many others are going to come out against it in the coming weeks, until the proposed healthcare changes are so diluted that they get pre-Obamacare healthcare?

Maybe this will wake up the Dems to get off their "Russia infiltrated us" mantra and go after the "insane clown president" on things that really matter? Maybe? :)

Matthew Franko said...

I think they are 'refundable'...

DEFINITION of 'Refundable Credit'
A tax credit that is not limited by the amount of an individual's tax liability. Typically a tax credit only reduces an individual's tax liability to zero. Refundable credits go beyond this and so really can be considered the same as a payment.



Read more: Refundable Credit http://www.investopedia.com/terms/r/refundablecredit.asp#ixzz4aeanEH9G
Follow us: Investopedia on Facebook

I would assume the EITC is also a refundable credit...

it would create a big pot of USD for USD zombies to go after.... which they will...

Matthew Franko said...

Here:

"The measure would offer individuals refundable tax credits to purchase health insurance and restructure the country's Medicaid program so that states receive a set amount of money from the federal government every year"

http://www.cnn.com/2017/03/06/politics/republicans-public-obamacare-plan/


They are completely redesigning the US acquisition strategy for healthcare...

Noah Way said...

Obamacare is a premium advance tax credit that is used to subsidize insurance. The GOP's "plan" appears to replace the mandate and the subsidy with a tax credit.

Funny thing is that if Trump declared Medicare for all he would not only save the country hundreds of billions he would immediately kill the Democratic party and in one fell swoop.

John said...

lastgreek, I suppose it all depends on how hard Trump wants to defend his proposed healthcare bill. The evidence up until now is that when met with the slightest opposition he folds like a bad suit. Since he doesn't like working on the necessary details, it looks like the Congressional GOPhers may be in the driving seat and they want the pre-Obamacare system of healthcare.

As you say, the dumb Dems will instead bang on about the imaginary Russian coup, leaving working Americans to die in their droves. Priorities being what they are, none of this is any great surprise: GOPhers being sadists, dumb Dems being ineffectual and beholden to deep state and corporate interests, and a prez being a moronic clown who spends all day watching shitty Fox and reading the putrid garbage of Breitbart.

Matthew Franko said...

"Medicare for all he would not only save the country hundreds of billions "

That is not the way business works...

Business changes when the order is guaranteed and the payor is viewed as 'money good'....

This is a plan put together by business people NOT academics...

Matthew Franko said...

Theyre going to give everybody $4k for healthcare and these people are going to go after that big pot of USDs like sharks after a floating dead whale carcass...

Michael Norman said...

@Noah Way

"Tax credits don't mean squat to the 47% who don't earn enough to pay federal income tax."

Exactly.

Penguin pop said...

"As you say, the dumb Dems will instead bang on about the imaginary Russian coup, leaving working Americans to die in their droves. Priorities being what they are, none of this is any great surprise: GOPhers being sadists, dumb Dems being ineffectual and beholden to deep state and corporate interests, and a prez being a moronic clown who spends all day watching shitty Fox and reading the putrid garbage of Breitbart."

They're all morons. Shame on each. I also think the prez is senile, so I can cut him a bit more slack for his stupidity, but the Dems have no excuse. Ugh.

Matt Franko said...

It's refundable....

Bubbalouis said...

I agree with Noah. Tax credits are meaningless. And let's talk about the deductible that this 47% can't afford.

John said...

Noah: "Tax credits don't mean squat to the 47% who don't earn enough to pay federal income tax."

Which is precisely why they're offering it. The political class never have a sense of self-preservation, and instead think they can push the majority of the population into sickness and death without an eventual revolt. Shocking but also predictable, given the vested interests involved, that this can go on in a country demanding a European or Canadian national healthcare system.

Andrew Anderson said...

Good ole fiat is ITSELF a tax credit - a transferable one.

Noah Way said...

John: The same assholes that have been screwing the country for decades are still in power. Self-preservation in the political class requires (or used to, at least) massive funding in the form of campaign donations necessary to buy elections (via media).