Campaign for Liberty to Congress: Cut ObamaCare taxes

Campaign for Liberty has joined a coalition of 45 free-market groups in a letter to Senate Finance Committee Chairman Orin Hatch, calling on him to make sure the Senate’s ObamaCare legislation cuts all ObamaCare taxes. The tax cuts are one of the best provisions in the GOP’s flawed health care plan, but the Senate may retain some of those taxes  so their bill cannot be accused of being mean. Here is the letter:

June 13, 2017 The Honorable Orrin G. Hatch Chairman, Senate Committee on Finance 219 Dirksen Senate Office Building Washington, DC 20510 Dear Chairman Hatch: As the Senate continues to make progress on legislation to repeal and replace Obamacare, we urge you and your colleagues to include repeal of the nearly 20 taxes imposed by the law. During a February 1 speech at the Chamber of Commerce, you declared, ”All of the ObamaCare taxes need to go as part of the repeal process.”  We agree. Recent media reports suggest that the Senate may be wavering on repeal of these taxes. This would be a mistake. The final Senate repeal package should retain the broad tax relief that was included in the House passed American Health Care Act. The roughly one trillion dollars in new or higher taxes imposed by Obamacare directly hit middle class families and small businesses, raise the cost of healthcare, and reduce access to  care. Obamacare taxes directly suppress economic growth. The best example of this is the 3.8 percent so-called Net Investment Income Investment Tax (NIIT) on capital gains and dividends. Historically, capital gains taxes have a significant negative impact on capital formation, productivity, andeconomic growth while raising little or even negative revenue. Repealing the 3.8 percent NIIT would return the capital gains tax rate to 20 percent, the rate agreed to by President Clinton and a Republican Congress in 1997. A related tax hike is the 0.9 percent Medicare surtax on wages and selfemployment income, the repeal of which was unfortunately delayed six years by an amendment in the House. It should be repealed as expeditiously as possible. Other Obamacare taxes directly impact the ability of Americans to meet healthcare costs, such as the income tax hike on families with high medical bills. Around 10 million families pay $200 to $400 in higher income taxes each year because Obamacare increases the threshold at which families can deduct medical expenses paid out of pocket. Obamacare also makes it harder for individuals to save for their own healthcare choices. Roughly 20 million Americans use tax-advantaged Health Savings Accounts (HSAs) to save for healthcare costs. Another 30 million use Flexible Spending Accounts. There are multiple taxes that restrict the ability of families to use these savings accounts, which limits the choice of consumers. Other taxes hit certain healthcare industries, such as insurance providers, medical device and prescription drug manufacturers. Inevitably, these taxes are passed onto American families in the form of increased costs. Finally, the tax associated with the employer mandate has limited millions of Americans to part-time work and the tax penalty associated with the individual mandate hit eight million Americans in 2014, with a family of four facing an income tax hike exceeding $2,000. True repeal of Obamacare means repealing the Obamacare taxes and the Senate should resist the urge to deprive taxpayers of relief in order to pay for higher spending. We commend you on your stance to repeal these Obamacare taxes and urge any final package accelerate or at least maintain the House-passed tax reductions. Sincerely, Grover Norquist President, Americans for Tax Reform James L. Martin Founder/Chairman, 60 Plus Association Phil Kerpen President, American Commitment Steve Pociask President, American Consumer Institute Lisa B. Nelson CEO, American Legislative Exchange Council Ashley N. Varner Executive Director, ALEC Action Dan Weber President, Association of Mature American Citizens (AMAC) Lindsay Boyd Policy Director, Beacon Center of Tennessee Norm Singleton President, Campaign for Liberty Andrew F. Quinlan President, Center for Freedom and Prosperity Chuck Muth President, Citizen Outreach (Nevada) Twila Brase, RN, PHN President and Co-founder, Citizens’ Council for Health Freedom Chip Faulkner Executive Director, Citizens for Limited Taxation (Massachusetts) David McIntosh President, Club for Growth Michael J. Bowen CEO, Coalition for a Strong America Thomas Schatz President, Council for Citizens Against Government Waste Katie McAuliffe Executive Director, Digital Liberty Adam Brandon President, FreedomWorks Richard Watson Chairman, Florida Center-Right Coalition Annette Meeks CEO, Freedom Foundation of Minnesota George Landrith President, Frontiers of Freedom Grace-Marie Turner President, Galen Institute* Mario H. Lopez President, Hispanic Leadership Fund Joseph Bast President & CEO, The Heartland Institute Heather R. Higgins President & CEO, Independent Women’s Voice Donald P. Racheter, Ph.D. Chair, Iowa Center-Right Coalition Colin A. Hanna President, Let Freedom Ring Stephen Waguespack President and CEO, Louisiana Association of Business and Industry Brett Healy President, The MacIver Institute Richard Watson Chairman, Florida Center-Right Coalition Mary Adams Chair, Maine Center-Right Coalition Bryan Dench Maine Conservative Activist Tim Jones Former Speaker, Missouri House of Representatives Brian McClung Chair, Minnesota Center-Right Coalition Devon Herrick Ph.D. Senior Fellow, National Center for Policy Analysis Brandon Arnold Executive Vice President, National Taxpayers Union Jeff Kropf Executive Director, Oregon Capitol Watch Foundation Jordan Harris & Josh Crwofrod Co-Executive Directors, the Pegasus Institute (Kentucky) Mike Stenhouse Founder & CEO, Rhode Island Center for Freedom and Prosperity Karen Kerrigan President & CEO, Small Business & Entrepreneurship Council David Williams President, Taxpayers Protection Alliance Michael W. Thompson President, Thomas Jefferson Institute for Public Policy Nancy Piotter Executive Director, Virginians for Quality Healthcare Gerrye Johnston Founder/CEO, Women for Democracy in America, Inc. Cc: United States Senators *Organization listed for identification purposes only