Yesterday we were discussing how not passing the AHCA would impact tax reform and being able to offer cuts. Someone asked, when I said it was revenue neutral, why wouldn't defense spending etc wouldn't wipe that out. I didn't really fully understand the specifics of how budget reconciliation worked as it related to tax cuts but found this article in tif Washington Post that explains it.
Quote:
That's because, due to parliamentary rules, tax revisions can't lose any revenue outside the 10-year budget window if it's going to be permanent. The question, though, is lose revenue compared to what. If Republicans had repealed the Affordable Care Act's $1 trillion worth of taxes before they revised taxes, that's $1 trillion less they'd have to come up with to make it look like money wasn't being lost.
https://www.washingtonpost.com/news/...=.20d1cccea739
So basically by cutting taxes used to fund the ACA, they cut the tax revenue number they needed to meet when doing tax reform. So not only did they want to make insurance completely unaffordable to many people, they wanted to give that money ack to top tier tax payers and then DOUBLE it.
I think we need tax reform, real tax reform but it is probably the hardest thing to get done. Special interests. Come out from everywhere. There is no certainty that trump and the republicans can do that. I don't think we need reduced revenue but we do need reform. Technically any reform is supposed to be revenue neutral but as you can see with the tricks they are trying to play that can be just a technicality.
Last edited by markksman; 03-26-2017 at 01:57 AM.