Cutting Insurance from Working Families to Give Tax Cuts to Millionaires

By Alex Rowell and Ryan Erickson

Republican health care plans, including the House-passed American Health Care Act (AHCA), would repeal taxes on the wealthy, including the Net Investment Income Tax (NIIT)—a tax on combined capital gain, dividend, and interest income applicable to individuals making more than $200,000 or couples filing jointly making more than $250,000 in adjusted gross income. This tax cut is paid for by eliminating health insurance coverage for millions of low- and moderate-income Americans. Approximately 90 percent of the benefit of repealing this tax goes to the top 1 percent of households.

Below is a table that shows estimates of the average tax cut for households earning more than $1,000,000 in annual adjusted gross income by state if proposals to eliminate the NIIT succeed.

At the same time, the House-passed bill would cause 23 million people to lose coverage by 2026, according to the Congressional Budget Office (CBO). The estimates below apportion the CBO estimate by state.

Table 1 compares the tax cut for those earning more than $1,000,000 with the number of people in each state who will lose health insurance coverage if the House-passed AHCA becomes law.

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Reposted from CAP.

Posted In: Allied Approaches

Union Matters

California Protects Precariat Workers

From the AFL-CIO

In a historic win for California’s workers, the California Legislature approved a bill Sept. 13 that makes the misclassification of employees as independent contractors more difficult.

Sponsored by the California Labor Federation, Assembly Bill 5 codifies and expands on a 2018 California Supreme Court decision.

The bill also will help curb the rampant exploitation of workers by unscrupulous employers and give California’s working people the basic rights and protections we all deserve. Gov. Gavin Newsom is expected to sign the bill into law.

 “The time is up for unscrupulous employers who claim their workers are ‘independent’ in order to cut corners on costs,”  California Assembly member Lorena Gonzalez said about A.B. 5

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