ACA repeal would mean large tax cut for high earners

If Republican lawmakers follow through on their promise to repeal the ACA, the top 1 percent of earners would see an average tax cut of $33,000, while the top 0.1 percent would get an average tax break of $197,000, according to a new study from the Tax Policy Center, featured by Bloomberg.

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Meanwhile, an ACA repeal would lead to an average $90 tax increase for the lowest-income households — those making less than $25,000, according to the report. However, that average contains wide variation. Researchers found most low-income households would see no change to their taxes, and 7 percent of them would see an average tax cut of about $1,200. About 4 percent would see a tax increase of almost $3,900.

The projected tax increase for some would be due to cutting subsidies for purchasing insurance, which are partially delivered through tax credits, according to the report.

“In general, repealing the ACA would, on average, cut taxes for the rich and raise them for low-income households,” Tax Policy Center Senior Fellow Howard Gleckman said, according to the report.

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