Author Topic: How ‘Repeal-and-Replace’ Legislation Could Increase The Deficit  (Read 334 times)

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How ‘Repeal-and-Replace’ Legislation Could Increase The Deficit
 
June 23, 2017 By Christopher Jacobs   



Even if the Congressional Budget Office releases an estimate early next week claiming that the Senate Obamacare discussion draft reduces the deficit, the legislation could well end up increasing the deficit. That’s because the bill repeals most of the law’s taxes, but leaves one in place—for the moment. Under the discussion draft, Obamacare’s “Cadillac tax” on high-cost health plans would return in 2026.

The New York Times noted earlier this week that Republicans intend to offer an amendment to eliminate the tax outright. If an outright repeal of the “Cadillac tax” receives more than 60 votes in the Senate—as it has before—that would mean the legislation could (and likely would) increase the deficit in the long term, while still passing through budget reconciliation measures on a simple majority vote.

About the Heller Amendment

Congressional staff have considered this scenario for months—whereby the “repeal” bill can bust the budget, by using Democratic votes to repeal the “Cadillac tax,” just as they did in 2015. During consideration of that repeal-only reconciliation bill, Senate Majority Leader Mitch McConnell (R-KY) offered a substitute amendment sunsetting the tax in 2025. Sen. Dean Heller (R-NV) then offered an amendment to that substitute repealing the “Cadillac tax” outright. That amendment passed on a bipartisan vote, with 90 senators voting to repeal the tax.

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http://thefederalist.com/2017/06/23/repeal-replace-legislation-increase-deficit/
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