Distribution of Affordable Care Act Taxes (Dec 2016)

Summary table of the distributions of changes in after-tax income caused by the repeal of various ACA tax provisions in 2025.

Distribution of federal tax change from the repeal of all ACA taxes in 2017, by cash income percentile, against current law baseline: the 3.8 percent Net Investment 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, the increase in threshold for medical expense deductions, and the excise taxes on pharmaceutical manufacturers and importers. This table includes the Premium Tax Credit.

Distribution of federal tax change from the repeal of all ACA taxes in 2025, by cash income percentile, against current law baseline: the 3.8 percent Net Investment Tax, the 0.9 percent additional HI tax, the Cadillac Tax, the excise tax on employers offering inadequate health insurance coverage, the excise tax on individuals without adequate health insurance, the increase in threshold for medical expense deductions, and the excise taxes on health insurance providers, pharmaceutical manufacturers and importers, and medical device manufacturers and importers. This table includes the Premium Tax Credit.

Distribution of tax units with the premium tax credit, by expanded cash income percentile, under current law in 2017. Simulations of the Premium Tax Credit are calibrated to match results from the Urban Institute's Health Insurance Policy Simulation Model (HIPSM).

Distribution of tax units with the premium tax credit, by expanded cash income percentile, under current law in 2025. Simulations of the Premium Tax Credit are calibrated to match results from the Urban Institute's Health Insurance Policy Simulation Model (HIPSM).

Distribution of federal tax change from the repeal of all ACA taxes in 2017, by cash income percentile, against current law baseline: the 3.8 percent Net Investment 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, the increase in threshold for medical expense deductions, and the excise taxes on pharmaceutical manufacturers and importers. This table does not include the Premium Tax Credit.

Distribution of federal tax change from the repeal of all ACA taxes in 2025, by cash income percentile, against current law baseline: the 3.8 percent Net Investment Tax, the 0.9 percent additional HI tax, the Cadillac Tax, the excise tax on employers offering inadequate health insurance coverage, the excise tax on individuals without adequate health insurance, the increase in threshold for medical expense deductions, and the excise taxes on health insurance providers, pharmaceutical manufacturers and importers, and medical device manufacturers and importers. This table does not include the Premium Tax Credit.

Under the ACA, taxpayers can deduct medical expenses exceeding 10 percent of AGI. This table shows the distributions, by expanded cash income level, of federal tax change of reverting the threshold to pre-ACA levels of 7.5 percent of AGI in 2017. 

Under the ACA, taxpayers can deduct medical expenses exceeding 10 percent of AGI. This table shows the distributions, by expanded cash income percentile, of federal tax change of reverting the threshold to pre-ACA levels of 7.5 percent of AGI in 2025. 

Distribution of federal tax change from the repeal of the 0.9 percent Additional Medicare Tax in 2017, by cash income percentile, against current law baseline.

Distribution of federal tax change from the repeal of the 0.9 percent Additional Medicare Tax in 2025, by cash income percentile, against current law baseline.

Distribution of federal tax change from the repeal of the ACA's excise taxes on pharmaceutical manufacturers and importers in 2017, by cash income level, against current law baseline.