Trump: Repeal the Obamacare Mandate to Cut the Top Tax Rate

Trump: Repeal the Obamacare Mandate to Cut the Top Tax Rate

President Trump ponders the answer to a question from a reporter en route to Hanoi, Vietnam, aboard Air Force One. 

REUTERS/Jonathan Ernst
Jonathan Ernst
By The Fiscal Times Staff

President Trump repeated his call Monday to repeal the Affordable Care Act’s individual mandate as part of the tax bill. In a tweet — geotagged from Pennsylvania, not the Philippines , where Trump currently is — Trump added that the billions in savings from ending the mandate should be used to cut the top marginal rate to 35 percent and the rest on cuts for the middle class.

The Congressional Budget Office said last week that eliminating the mandate would save $338 billion over the next decade.

The current version of the House tax bill keeps the top individual income tax rate at 39.6 percent, while the Senate bill lowers it to 38.5 percent. However, mandate repeal is not currently part of either tax bill, and, as The New York Times notes, “repeal of the individual mandate was not on the list of 355 amendments that the [Senate Finance Committee] released on Sunday night.”

Chart of the Day: A Buying Binge Driven by Tax Cuts

By The Fiscal Times Staff

The Wall Street Journal reports that the tax cuts and economic environment are prompting U.S. companies to go on a buying binge: “Mergers and acquisitions announced by U.S. acquirers so far in 2018 are running at the highest dollar volume since the first two months of 2000, according to Dealogic. Thomson Reuters, which publishes slightly different numbers, puts it at the highest since the start of 2007.”

Number of the Day: 5.5 Percent

The debate over national health care aside, more Americans today say they get "excellent health care" than did in the early 2000s, according to <a href="" target="_blank"
Getty Images
By Yuval Rosenberg

Health care spending in the U.S. will grow at an average annual rate of 5.5 percent from 2017 through 2026, according to new estimates published in Health Affairs by the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS).

The projections mean that health care spending would rise as a share of the economy from 17.9 percent in 2016 to 19.7 percent in 2026.

Part of the Shutdown-Ending Deal: $31 Billion More in Tax Cuts

The U.S. Capitol building is lit at dusk ahead of planned votes on tax reform in Washington, U.S., December 18, 2017.   REUTERS/Joshua Roberts/Files
Joshua Roberts
By The Fiscal Times Staff

Margot Sanger-Katz and Jim Tankersley in The New York Times: “The deal struck by Democrats and Republicans on Monday to end a brief government shutdown contains $31 billion in tax cuts, including a temporary delay in implementing three health care-related taxes.”

“Those delays, which enjoy varying degrees of bipartisan support, are not offset by any spending cuts or tax increases, and thus will add to a federal budget deficit that is already projected to increase rapidly as last year’s mammoth new tax law takes effect.”

IRS Paid $20 Million to Collect $6.7 Million in Tax Debts

The IRS provides second chances to get your tax return right with Form 1040X.
By The Fiscal Times Staff

Congress passed a law in 2015 requiring the IRS to use private debt collection agencies to pursue “inactive tax receivables,” but the financial results are not encouraging so far, according to a new taxpayer advocate report out Wednesday.

In fiscal year 2017, the IRS received $6.7 million from taxpayers whose debts were assigned to private collection agencies, but the agencies were paid $20 million – “three times the amount collected,” the report helpfully points out.

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