T17-0194 - Distribution of Major Tax Provisions in Discussion Draft Version of Better Care Reconciliation ACT (BCRA) Released on July 13, 2017, Excluding 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 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 excludes changes to health insurance tax credits, Health Savings Accounts and Medical Flexible Spending Accounts. This version of the BCRA would not repeal the 3.8 percent net investment income tax and 0.9 percent additional Medicare hospital insurance tax.