A new Institute on Taxation and Economic Policy analysis of tax provisions in the American Health Care Act provides a 50-state breakdown of how taxpayers would be affected by the Republican plan to repeal the net investment tax and additional Medicare tax, each of which apply only to the best-off Americans.
Repealing these taxes would, overall, be a $31 billion tax cut for the wealthiest Americans, with 85 percent of the cut going to the top 1 percent. The 50-state breakdown finds that the percent of taxpayers who will receive a tax cut varies widely by state. For example, in Alabama the richest 1.4 percent of taxpayers will receive a tax cut, but in New Jersey, the richest 4.4 percent will receive a cut. This is because the number of extremely wealthy taxpayers varies by state.
“The bottom line is that this is another proposed tax giveaway to the wealthiest Americans,” said Matt Gardner, a senior fellow at ITEP. “Just like Congress’s proposed tax plan, the health care bill focuses on ensuring the wealthy have to contribute as little as possible to fund the services on which we all rely.”
To view how taxpayers in each state will be affected by tax provisions in the Republican health care plan, visit: http://itep.org/itep_reports/2017/03/affordable-care-act-repeal-includes-a-31-billion-tax-cut-for-a-handful-of-the-wealthiest-taxpayers-5.php