The Republicans are attempting to wrap the tax bill up in shiny paper and sell it to the American public as a way to boost the economy, create jobs, and lower the tax burden for working families. In truth, it does none of those things.
Instead, the tax bill will increase the tax burden for American families who make less than six figures a year. It will be a handout to the wealthiest at the expense of the poor and middle class.
But that’s not all. This legislation does something more. At the heart of the bill is the actual Republican priority. This ‘reform’ is not about taxes. It is a backdoor way to repeal Obamacare after the Republican-controlled House and Senate could not win that battle when they attempted to pass health care reform earlier this year.
The Senate Tax Cuts and Jobs Act eliminates the individual mandate that is an integral part of Obamacare. It is the mandate that provides stability in markets and allows for affordable costs.
The Congressional Budget Office found that eliminating the individual mandate, that requires all people obtain insurance or risk a tax penalty, would result in a cut of $338 billion from Medicaid and insurance subsidies over the next ten years.
This cut will mean that 13 million fewer Americans will have health coverage. Analysis of that drastic of a cut shows it an estimated increase in preventable deaths numbering around 15,600 per year.
As if that wasn’t bad enough, there is more. Not only will the elimination of the mandate lead to those drastic numbers, but it is also likely to destabilize the individual market entirely.
The individual mandate ensures affordable premiums. The people most likely to not buy insurance without the mandate are the young and healthy, who help to stabilize the risk for insurers by offsetting the cost of care for older and less healthy individuals. Without them, the increased cost to insurers gets passed right along to consumers.
If enough people opt out of insurance, the costs become too great and insurers may stop offering coverage in certain areas altogether. In truth, the tax bill is simply putting lipstick on the Obamacare pig that failed before.
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