Director of Federal Fiscal Policy
Republican plans to repeal the Affordable Care Act (ACA), which will deliver billions in tax cuts to the nation’s highest-income households, won’t meet the test outlined by President-elect Trump’s Treasury nominee, Steven Mnuchin — that we won’t see an “absolute tax cut for the upper class.”
Mr. Mnuchin’s test is an appropriate topic for his nomination hearing, expected to occur next Thursday — especially because the 400 highest-income households could get an annual average tax cut of about $7 million under Republicans’ plans to repeal the ACA, if two Medicare taxes that fall only on high-income filers are eliminated. Millionaire households would get tax cuts of about $50,000 apiece.
That sets the ACA repeal on a collision course with Mnuchin’s standard, as CNBC’s John Harwood describes in the must-watch clip below.