T17-0187 - Distribution of Major Tax Provisions in Discussion Draft Version of Better Care Reconciliation ACT (BCRA), Including Changes to Health Insurance Tax Credits, by Expanded Cash Income Percentile, 2026

Distribution of federal tax change from the repeal of the following Affordable Care Act (ACA) taxes in 2026: the 3.8 percent Net Investment Income Tax, the 0.9 percent additional HI tax, the excise tax on employers offering inadequate health insurance coverage, the excise tax on individuals without adequate health insurance, and the excise taxes on health insurance providers, pharmaceutical manufacturers and importers, and medical device manufacturers and importers. The proposal would lower the threshold for the medical expense deduction to 7.5 percent. Analysis includes changes to health insurance tax credits, but excludes changes to Health Savings Accounts and Medical Flexible Spending Accounts.