The American Health Care Act: An $800,000 Annual Tax Cut for Greg Gianforte

President Donald Trump ran on a campaign platform of repealing and replacing the Affordable Care Act (ACA), and since 2010, when the bill was passed, the United States Congress has taken more than 60 votes to repeal the legislation. The American Health Care Act (AHCA) is the current legislative vehicle Republicans in Congress have developed to repeal the ACA. Yet critics of the bill – including health care experts, patient groups, senior groups, and groups representing doctors, nurses, and hospitals — warn that it would throw millions off insurance and remove critical health care protections without sufficient replacement provisions to protect the livelihood of millions of Americans.

A key criticism of the AHCA is that it is a tax cut disguised as a health care bill. Significant cuts included in the bill are the repeal of a 3.8 percent Net Investment Income Tax (NIIT) and 0.9 percent additional Medicare Hospital Insurance (HI) payroll tax, both of which are taxes on high earners (applying only to those whose incomes exceed $200,000, or $250,000 for married taxpayers who file jointly). For Greg Gianforte, based on an annualized calculation of wages, capital gains, and dividend income, that means he would receive a $772,981 tax cut every year from the repeal of NIIT and an annual $12,432 cut from HI repeal. Ultimately, Gianforte stands to receive an estimated $785,413 in tax cuts from the AHCA each year.

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