Trump’s Trickle-Down Tax Plan: Repealing the ACA Tax

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This is one of a series of posts on Trump’s recent tax proposal. To see the entire collection of posts, click HERE.

What is the ACA tax?

Alongside the Affordable Care Act came a 3.8% tax on net investment income and modified adjusted gross income on people whose individual income exceeds $200,000 or whose household income exceeds $250,000. This is intended to supplement the additional costs incurred to the government by the ACA. Trump’s tax plan repeals this tax entirely, with no replacement to fill the deficit it leaves behind.

Who does this impact?

The tax applies to individuals earning over $200,000 a year and couples earning over $250,000. The bigger impact, however, is on those who rely on the ACA for their insurance and healthcare. The repeal of this tax is likely to make getting access to healthcare much more difficult for these individuals and their families.

Why should you care?

The ACA tax, and the health care subsidies it pays for, are not just important on a moral level. Ensuring that everyone has access to affordable healthcare is good for the health of our nation and the continued functioning of the American economy. Repealing the ACA tax under Trump’s tax plan will leave a healthcare deficit and is the first step towards ACA repeal, which the Congressional Budget Office reported would kick nearly 24 million Americans off health insurance over the next 10 years. People who do not have access to affordable health care are more likely to make emergency room visits rather than using less burdensome preventative care, and are also less able to work and participate in the economy. Both of these things place enormous strain on our collective services and make it harder for all Americans to get good, affordable health care.

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