Joint Committee on Taxation puts $600B price tag on GOP healthcare plan

House Republicans released the American Health Care Act on Monday, and the congressional Joint Committee on Taxation estimates the healthcare plan will cost the federal government nearly $600 billion over 10 years.

The American Health Care Act would repeal more than 20 taxes enacted under the ACA. Repealing these taxes would cost nearly $600 billion through 2026, according to CNBC, which cited preliminary estimates from the Joint Committee on Taxation.

Here's a cost breakdown of provisions in the GOP healthcare plan.  

  • Repeal 3.8 percent investment income tax — $158 billion
  • Repeal health insurer tax — $145 billion
  • Repeal 0.9 percent high income surtax — $117 billion
  • Delay Cadillac tax from 2020 to 2025 — $49 billion
  • Repeal increase in medical expense deduction floor — $35 billion
  • Repeal prescription drug tax — $25 billion
  • Repeal 2.3 percent medical device tax — $20 billion
  • Repeal limit on flexible spending accounts — $19 million
  • Expand health savings accounts — $19 billion
  • Repeal other taxes — $8 billion

The Joint Committee on Taxation's estimate doesn't include the cost of replacement tax credits in the House legislation or the cost of rolling back the individual and employer mandates.

Regarding House Republicans' plan to repeal the taxes, the Committee for a Responsible Federal Budget said, "Without further information, it is impossible to know if these tax cuts will be fully paid for as part of the House plan, though it is clear that the inclusion of these tax cuts will leave less revenue available to finance any coverage provisions. It also seems that the legislation will worsen the financial state of the Medicare Hospital Insurance trust fund."

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