Tuesday, June 05, 2012

Possible tax implications if health care reform is voided by the Supreme Court

Expectations in Washington have reached feverish heights as supporters and foes of the Affordable Care Act fret about a Supreme Court ruling in the next few weeks that will decide its fate – and potentially set off a cascade of policy reverberations.

If the justices strike down the law in its entirety, for example, they would do away with $1.4 trillion in planned spending over the next ten years. Since there would be no expansion of Medicaid eligibility and no creation of insurance subsidies for middle-class people, the money for those benefits wouldn’t be spent.

A ruling which invalidated the law would also cancel more than $400 billion in tax increases between now and 2021 that Congress designed to help pay for the expansion of insurance coverage.
Read the rest here.

1 comment:

Colin Clout said...

Wait...$1.4 trillion savings, $.004 trillion less taxes? They expect $.004 to cover $1.4? That's like saying "I'll pay you a penny for a big mack."