Free Market Groups/Activists Urge Senate to Repeal All ObamaCare Taxes |
Wednesday, June 14 2017 |
The Center for Individual Freedom ("CFIF") this week joined a coalition of nearly 50 organizations and activists on a letter to the United State Senate urging repeal of all ObamaCare taxes. The letter, which was organized by Americans for Tax Reform, can be read below or here (.pdf). June 13, 2017 The Honorable Orrin G. Hatch Dear Chairman Hatch: As the Senate continues to make progress on legislation to repeal and replace Obamacare, we urge you and your colleagues to include repeal of the nearly 20 taxes imposed by the law. During a February 1 speech at the Chamber of Commerce, you declared, "All of the ObamaCare taxes need to go as part of the repeal process." We agree. Recent media reports suggest that the Senate may be wavering on repeal of these taxes. This would be a mistake. The final Senate repeal package should retain the broad tax relief that was included in the House passed American Health Care Act. The roughly one trillion dollars in new or higher taxes imposed by Obamacare directly hit middle class families and small businesses, raise the cost of healthcare, and reduce access to care. Obamacare taxes directly suppress economic growth. The best example of this is the 3.8 percent so-called Net Investment Income Investment Tax (NIIT) on capital gains and dividends. Historically, capital gains taxes have a significant negative impact on capital formation, productivity, and economic growth while raising little or even negative revenue. Repealing the 3.8 percent NIIT would return the capital gains tax rate to 20 percent, the rate agreed to by President Clinton and a Republican Congress in 1997. A related tax hike is the 0.9 percent Medicare surtax on wages and self-employment income, the repeal of which was unfortunately delayed six years by an amendment in the House. It should be repealed as expeditiously as possible. Other Obamacare taxes directly impact the ability of Americans to meet healthcare costs, such as the income tax hike on families with high medical bills. Around 10 million families pay $200 to $400 in higher income taxes each year because Obamacare increases the threshold at which families can deduct medical expenses paid out of pocket. Obamacare also makes it harder for individuals to save for their own healthcare choices. Roughly 20 million Americans use tax-advantaged Health Savings Accounts (HSAs) to save for healthcare costs. Another 30 million use Flexible Spending Accounts. There are multiple taxes that restrict the ability of families to use these savings accounts, which limits the choice of consumers. Other taxes hit certain healthcare industries, such as insurance providers, medical device and prescription drug manufacturers. Inevitably, these taxes are passed onto American families in the form of increased costs. True repeal of Obamacare means repealing the Obamacare taxes and the Senate should resist the urge to deprive taxpayers of relief in order to pay for higher spending. We commend you on your stance to repeal these Obamacare taxes and urge any final package accelerate or at least maintain the House-passed tax reductions. Sincerely, Grover Norquist James L. Martin Phil Kerpen Steve Pociask Lisa B. Nelson Ashley N. Varner Dan Weber Lindsay Boyd Norm Singleton Andrew F. Quinlan Jeff Mazzella Chuck Muth Twila Brase, RN, PHN Chip Faulkner David McIntosh Michael J. Bowen Thomas Schatz Katie McAuliffe Adam Brandon Richard Watson Annette Meeks George Landrith Grace-Marie Turner Mario H. Lopez Joseph Bast Heather R. Higgins Donald P. Racheter, Ph.D. Tom Giovanetti Ryan Ellis Seton Motley Colin A. Hanna Stephen Waguespack Brett Healy Mary Adams Bryan Dench Tim Jones Brian McClung Devon Herrick Ph.D. Brandon Arnold Jeff Kropf Jordan Harris & Josh Crawford Mike Stenhouse Karen Kerrigan David Williams Michael W. Thompson Nancy Piotter Gerrye Johnston Cc: United States Senators *Organization listed for identification purposes only |
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