Net Investment Income Tax and Additional Medicare Surtax to Remain?
The American Health Care Act (“AHCA”), was passed on May 4, 2017. The Senate Republican version of the AHCA, The Better Care Reconciliation Act (“BCRA”), was released in late June. The vote on the BCRA was originally set to take place the week of June 26th but was postponed to allow conservative and moderate Republicans time to resolve differences.
One major point of contention is the proposed three-year phase-out of Medicaid expansion. There are certain Republicans that would like to extend the transition beyond three years.
In addition, one Senate Republican aide confirmed that the 3.8% net investment income tax and the .9% additional Medicare surtax will not be repealed in the current version of the bill in which the Senate Republicans are working on.
There are a lot of moving parts to this as we have seen since the new Administration took over. Republican supporters of the ACA repeal bill are hoping to have a final version of the bill by tomorrow and hold a vote next week.
For additional details about the American Health Care Act progress and status, read American Health Care Act Pulled From the Floor, Amendment to the American Health Care Act, and MacArthur Amendment to the American Health Care Act Introduced.
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|Anthony Panico, CPA, MS, Partner
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