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Conservative Groups Warn Against Keeping Investment Tax in Healthcare Bill

Image: Conservative Groups Warn Against Keeping Investment Tax in Healthcare Bill
Sen. Bob Corker (AP)

By    |   Friday, 07 Jul 2017 10:34 AM

Republican legislators have discussed the possibility of keeping Obamacare's 3.8-percent tax on net investment income, but conservative groups are warning them against such a move, The Hill is reporting. 

Conservative groups say the tax, known as the Net Investment Income Tax or NIIT, should be repealed because of its effects on economic growth, as legislators discussed keeping it to pay for increased subsidies for those with low incomes, according to The Hill.

"It's not an acceptable proposition to have a bill that increases the burden on lower-income citizens and lessens the burden on wealthy citizens," Sen. Bob Corker, R-Tenn., told reporters, according to Bloomberg.

"This tax, just like any tax increase, is an anathema to conservatives as it suppresses economic growth and opportunity throughout our nation. Under no circumstances should the NIIT be included in any forthcoming Republican 'repeal' bill," David McIntosh, president of the Club for Growth. said Wednesday in a statement.

Keeping the tax would be a "step in the wrong direction — more like a trip," McIntosh added.

The NIIT applies to those who make more than $200,000 and married couples who make more than $250,000, and taxes capital gains, dividends, and interest, The Hill reported.

"Cutting the capital gains tax gets you growth," Grover Norquist, president of Americans for Tax Reform said, The Hill reports, adding that keeping the investment tax is "economically illiterate."

Some conservative lawmakers, however, have supported keeping the tax. According to The Hill, Mark Meadows, R-N.C., chairman of the House Freedom Caucus said, "Our official position is we want to repeal all the taxes. That being said, we understand the logistics of having to have enough revenue. And so I'm not at this point closing that off to negotiations."

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Republican legislators have discussed the possibility of keeping Obamacare's 3.8-percent tax on net investment income, but conservative groups are warning them against such a move, The Hill is reporting.
conservative groups, tax, healthcare, GOP
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2017-34-07
Friday, 07 Jul 2017 10:34 AM
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