Obamacare Tax Cuts Won’t Help Tax Reform Baseline
Brian Riedl, E21
Republicans frequently claim that eliminating Obamacare taxes as part of health insurance reform will make future tax reform legislation easier by “lowering the tax baseline.”
The theory seems intuitive at first. Over the next decade, Washington is projected to collect $43.1 trillion in tax revenues. Thus, tax reformers seeking revenue-neutrality must design a system raising $43.1 trillion. But if Congress first repeals ObamaCare’s $600 billion in taxes (without revenue offsets), it would lower the baseline to $42.5 trillion – and put future tax reformers on the hook for $600 billion less in revenue. Read more here....