Is Repealing Obamacare for the Better or Worse?
Is Repealing Obamacare for the Better or Worse?
Since the Affordable Care Act (aka Obamacare) became law, many have decried its terms and conditions, as well as how it negatively affects so many Americans and business owners. Republican lawmakers have tried unsuccessfully to repeal it since its inception. However, that could all be about to change now that Donald Trump has won the White House and Republicans have maintained control of the Senate and Congress. It’s no secret that repealing Obamacare is reportedly one of the first orders of business for the new administration as soon as it takes office in January. So how will that end up affecting our country, especially when it comes to the financial side? And specifically, what would it mean for millionaires and billionaires?
Wealthy Stand to Gain the Most
First off, if Obamacare is repealed, more than 20 million people could end up without any health benefits. However, for many, repealing Obamacare would be a boon for their bottom line, especially for many of the nation’s wealthiest taxpayers. So why do the wealthy stand to gain so much if the Affordable Care Act is repealed? For starters, it’s the wealthy that are really paying for everyone else’s health insurance. The reason for this is that the ACA includes a surcharge tax for all households that make more than $250,000 a year or single individuals that earn more than $200,000 a year. Those thresholds do not change for inflation, either, which means each year the number of total taxpayers falling into these categories is likely to rise. Individual income taxes are the chief source of income used to help pay for insurance for millions of low-income Americans.
Fewer Taxes on Capital Gains
The other major factor is the Net Investment Income surcharge tax, which is applied to capital gains. Again, this affects the wealthy more than anyone else, because many of the country’s highest earners make a large portion of their money in capital gains. The current surcharge is 3.8 percent. Which is added to the taxpayer’s capital gains rate, which can already be as much as 20 percent for those in the highest tax bracket? Therefore, if republican lawmakers, including president-elect Trump, move forward with their plan to repeal the law, the nation’s top earners, especially the top 1 percent, stand to save billions in taxes every year. In fact, according to the Congressional Budget Office, the government stands to lose about $346 billion in tax revenue in the next 10 years if the ACA is repealed.
How Will Lawmakers Replace the Income?
No doubt, the nation’s wealthiest individuals will enjoy keeping all that money in their own pockets, but it does beg the question, where will republican lawmakers come up with the cash to replace it? That will be up to the new administration to figure out, but for the time being, many of the country’s top earners are about to be worth a lot more if and when Obamacare is repealed when Trump takes office.
We hope you found this article about “Is Repealing Obamacare for the Better or Worse?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Thanksgiving is one of my favorite times of the year because it helps me to remember the many things I have to be grateful for: my family, relatively good health, friends, job, religious freedoms (I should probably use more often), and too many other blessings to list. Not to mention the Thanksgiving meal, mashed potatoes,…
In Conversation with Pamela Kan, President of Bishop-Wisecarver Corporation Pamela Kan has been the President of Bishop-Wisecarver Corporation since 1999. She is a highly respected leader in the manufacturing and engineering industry, and has been instrumental in growing the company into the successful business it is today. Kan holds a Bachelor of Science degree in…
Using Your Money for Positive Change, with Founder of Stickney Research Warren Stickney is the founder and principal of Stickney Research, a firm that specializes in the design and implementation of net income makeup charitable remainder trusts (NIMCRT). In this interview, he discusses his passion on how to use your money for positive change in…