U.S. President Donald Trump and key Republican senators were meeting Monday in a new push to advance Senate legislation to overhaul the country's complex tax laws.
IRS data show that 79 percent of taxpayers who pay the mandate tax make less than $50,000 and 37 percent make less than $25,000.The best argument mandate supporters can muster is that if people are not taxed for opting out of Obamacare, more people will opt out.But it's hard to see how people who might sign up exclusively to avoid the mandate tax are hurt by having the option to say no.And removing the mandate will set the stage for more sweeping health care changes to lower premiums and give Americans more health care choices next year. Yahoo Finance's Alexis Christoforous and Editor-in-Chief Andy Serwer break down the latest details.
Because most Americans at the lowest-earning end of the spectrum do not pay income taxes, the estimate is largely based on them losing tax credits for purchasing health insurance because the tax bill repeals the individual mandate.
The Senate proposal permanently chops the corporate tax rate and temporarily reduces individual income taxes, while changing numerous deductions.
Rep. Kevin Brady, chairman of the Ways and Means Committee, made his comments Tuesday as Senate Republican leaders pushed to pass their bill this week.
The final tax bill will not be entirely about taxes. The changes, if adopted, would be the biggest USA tax overhaul in three decades. Republicans have only two votes to spare in the Senate, where they hold a 52-48 edge, and anticipate Vice President Mike Pence breaking a tie, if needed. Republicans have said that economic growth spurred by tax cuts would generate enough new tax revenue to eliminate any new deficit.
The House's chief tax-writer says ending the "Obamacare" requirement that everyone have health insurance - an element of the Senate bill - is a move the House also is likely to accept.
The national debt has now topped $20 trillion, and several Republican senators have expressed concerns about more debt piling up as a result of the tax overhaul.
Ronna Romney McDaniel said all Republicans owe it to the American people to get tax reform passed during an interview on Sunday.