The healthcare bill approved by the House cuts taxes on Americans by over $1 trillion, the conservative Americans for Tax Reform reported.
The ATR said the American Health Care Act abolishes a number of taxes imposed as part of Obamacare including:
- 3.8 percent surtax on investment income – a $172 billion tax cut
- Health insurance tax – a $145 billion tax savings
- Chronic care tax imposed on 10 million people with high out-of-pocket medical expenses – a $126 billion tax cut
- Medical device tax – a $20 billion tax savings
- Prescription medicine tax – a $28 billion tax savings
ATR reported "tens of millions of middle income Americans will get tax relief" under the new bill.
But NPR said much of the tax savings will end up helping the wealthy.
"The Affordable Care Act, also known as Obamacare, is funded in part through higher taxes on the rich, including a 3.8 percent tax on investment income and a 0.9 percent payroll tax," NPR's Scott Horsley wrote. "Both of these taxes apply only to people earning more than $200,000 (or couples making more than $250,000). The GOP replacement bill would eliminate these taxes, although the latest version leaves the payroll tax in place through 2023."
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