TRUMPCARE TAX CUTS

   Trumpcare tax cuts. The American Health Care Act, AKA, Trumpcare, affects much more than just health insurance. Trumpcare would repeal many provisions of Obamacare that relate to insurance coverage, but it would also substantially change the amount of revenue the federal government collects. In other words, it’s not just health insurance reform, it’s tax reform, too. Trumpcare tax cuts.

The Congressional Budget Office estimated that if the version of Trumpcare tax cuts passed by the U.S. House of Representatives became law, it would reduce IRS revenue by $992 billion. In other words, Trumpcare is effectively a $1 trillion tax cut. The big questions are: Whose taxes are being cut, and what kinds of tax reform are being ushered in by this healthcare bill ?  Trump’s plan would cut taxes largely by repealing many of the taxes put into place by Obamacare to fund the original health insurance law, including individual mandate taxes: Obamacare imposes a tax penalty on Americans who do not have qualifying health insurance coverage. Many of those Americans also have debt, including tax debts and need Tax Resolution. They face potential IRS Wage Garnishment in many instances. The penalty amount is the greater of 2.5% of household income or $695 per adult and $374.50 per child without coverage, up to a maximum of $2,085.

Employer mandate taxes: Obamacare also contains an employer mandate that imposes taxes up to $3,390 per full time worker if larger employers fail to provide affordable comprehensive insurance coverage. Some of those individuals may need Tax Resolution Services Those who end up with the new tax may want to look at the IRS Fresh Start Program. Enforcement of the employer mandate has already been delayed. Tax increases on HSA’s and FSA’s: Obamacare increased the penalty on HSA and FSA withdrawals that are spent on anything other than qualifying medical care. Obamacare also put a limit on the amount of pre-tax money taxpayers could put into a flexible spending account.

By 2022, when all the IRS changes proposed by Trump’s plan would become fully effective, households in the lowest income tax brackets would receive a tax cut of around $150 of their average after tax income. Families with incomes in the top 1% with household incomes of $3.9 million or greater, would save an average of $207,000 boosting their after tax incomes by 2.6%.

If you have a tax debt and want options for resolving it, we can help. Our Tax Resolution will allow you to determine your Tax Relief options, including the IRS Fresh Start Program, and all options not in that program. Our Tax Resolution Services are stress free. Call for a Free Consultation so you don’t have to face an IRS Wage Garnishment. 1-888-689-7861