Senate Republicans Could Save Trumpcare With This One Weird Trick – New York Magazine

Ad will collapse in seconds CLOSE May 31, 2017 05/31/2017 8:51 am By Jonathan Chait Share Photo: Chip Somodevilla/Getty Images

Senate Republicans have a huge problem with an extremely simple solution. The problem is that the American Health Care Act increases the number of uninsured by 23 million, mainly because it cuts a trillion dollars out of financing for Medicaid and tax credits for individual insurance in order to finance a big tax cut. They have a very simple solution: Dont use the health-care bill to finance a huge tax cut. Oddly enough, this solution does not seem to have occurred to any of the Republicans working on their partys plan.

A somewhat surreal Politico story from last week reports that Senate Republicans feel intense gloom over their inability to produce a bill that substantially improves upon the negative-23 million insured in the House version. Senate Republicans also arent sure how much they can improve on a score that, in their view, fell far short of an acceptable outcome, the story reports. A very easy step would be to eliminate the tax cuts, thus eliminating the need to reduce spending for insurance for people who cant afford it on their own.

The report also suggests that Senate Republicans are hampered by special rules that force them to match or exceed the deficit reduction in the House bill:

You know what would be an easy way for the Senate bill to find a lot of budget savings? Take out the huge tax cut!

The 24th paragraph of the 26-paragraph-long story floats the possibility of delaying the tax cut. (One option under consideration: Delaying repeal of Obamacares taxes to produce more money to shore up Medicaid coffers and reduce premiums in the short term.) But of course a delay merely puts the problem off rather than resolving it.

The irony here is that Republicans appear to be hampered by a legislative strategy that no longer applies. The original Republican plan called for repealing Obamacare, including the taxes that pay for it, early in 2017. Then Republicans would pass a revenue-neutral tax cut, which offset tax cuts for high-income earners by imposing a border-adjustment tax.

Why didnt Republicans want to just combine both tax cuts into one extremely large tax cut for the rich? Because their plan required that the cost of the tax cuts be offset. The first tax cut for the rich would be offset with cuts to insurance subsidies, and the second offset with tax increases on the middle class. Doing all the tax cuts in one tax bill would require finding even more painful tax increases to offset their cost.

But now, Republicans are starting to realize tax reform that is, tax cuts that are offset by revenue increases elsewhere is a pipe dream. The border-adjustment tax has implacable enemies within the GOP. Theyre not going to find enough new revenue to cover the costs of the taxes they want to cut. Their plausible Plan B is just to pass a big tax cut without paying for its cost. That means they can just repeal the Obamacare taxes in the tax cut bill. They dont need to do it in a separate health-care bill.

Given the parameters Senate Republicans are working within, it is literally impossible for them to write a non-horrific health-care law. Their commitment to eliminating Obamacares taxes in the health-care bill deprives them of the funding they need to provide even bare-bones minimal coverage. And their longstanding party-wide opposition to any new taxes means they cant replace the lost revenue with something else. If they realize they can leave the Obamacare taxes in place, and repeal them in a separate tax-cut bill, they can get a health-care law that isnt a humanitarian disaster and a tax-cut bill that gives rich people some really big tax cuts. They have to realize this eventually, dont they?

Why Sasheer Zamata Never Had a Chance on Saturday Night Live

Inside Hillary Clintons Surreal Post-Election Life

Whats New on Netflix: June 2017

Is Uber Evil, or Just Doomed?

New Yorkers Stage Makeshift Graduation Ceremony for Student Stuck on Delayed Subway

To Trumps Supporters, Covfefe Is Just Another Way Hes Making America Great Again

How Is Johnny Depps Career Still in Such Good Shape?

How the Self-Esteem Craze Took Over America

The Youngest Trump Enters the Spotlight

The Americans Season-Finale Recap: Im Sorry, Im Sorry, Im Sorry

Most Popular Video On Daily Intelligencer

She denies her paid speeches for Wall Street audiences represented special treatment. Its probably true, but hard to prove.

Were increasingly divided between people who think Trumps doing a fine job, and people who think Congress should take steps to impeach him.

Sergeant Hugh Barry was indicted nearly six months after fatally shooting 66-year-old Deborah Danner.

U.S. officials released a video that shows the simulated ICBM being shot down.

The committee issued seven subpoenas Wednesday: four related to the Russia investigation, and three concerning the unmasking controversy.

The SpaceX and Tesla CEO has joined scores of other businesspeople speaking out in favor of the agreement.

She also slagged the DNC and addressed the possibility of running for office again.

Al Franken continues to trash talk his Senate colleague.

The firms knowingly misled doctors and patients about the risks inherent to opioid painkillers, the lawsuit alleges.

As the First Daughter keeps her head down, her dads decisions call into question how much pull she really has.

The president enlists his 11-year-old son Barron to express his outrage in the aftermath of the controversial Kathy Griffin photo shoot.

The right plans to seed damaging narratives about Warren early just as it did with Clinton. But that task will be much harder this time around.

Theresa May figured a snap election would strengthen her hand in Brexit talks. But the Tory lead is shrinking and Jeremy Corbyns doing well.

There is fresh evidence that African-American turnout sagged notably in 2016, and is not rebounding so far in 2017, either.

The former FBI director could appear before the Senate as soon as next week, CNN reports.

Liz Spayd, the papers sixth public editor, will also be its last.

The firm also attempted to hide its role in the film, which constituted the bulk of work it did on behalf of Turkeys government.

After months of deliberation, Trump has reportedly decided to undermine global cooperation on climate change and Americas diplomatic clout.

Who among us?

The student was supposed to be graduating from nursing school, but instead spent two hours stuck underground.

See original here:
Senate Republicans Could Save Trumpcare With This One Weird Trick - New York Magazine

Related Posts

Comments are closed.