Want To Reduce Health Insurance Premiums? Repeal Obamacare’s Premium Tax
Democrats’ 2010 health care bill was called the “Affordable Care Act.” But for hundreds of millions of Americans, premiums have risen even further because of Obamacare’s tax on insurance premiums. Congress has an opportunity to repeal this tax before members head home for the holidays.
Taxing health insurance premiums is completely counterproductive
President Obama insisted that his health care bill not increase the federal deficit. And, indeed, the Patient Protection and Affordable Care Act was scored by the Congressional Budget Office as not increasing the deficit, because it funded its $2 trillion in funding for insurance subsidies with large cuts to Medicare and a battery of tax increases.
Many of those tax increases harmed economic growth in the Obama years, especially the 3.8 percent net investment income tax, which the Tax Foundation estimates as costing 133,000 jobs and restraining wage growth.
But the blue ribbon for the Dumbest Tax in Obamacare goes to its tax on health insurance premiums, which the Joint Committee on Taxation estimates as raising $161 billion in revenue between 2019 and 2028. (The number would be higher, but for the fact that Congress passed a one-year premium tax holiday for 2019.)