Trump has two top legislative priorities: “Tax Reform” and “Repeal the ACA”.
Today, they intersected: his “Tax Reform” plan cuts exactly one tax from the ACA – the 3.8% Medicare tax on Net Investment Income for high-income taxpayers.
It has long been a badly-kept secret that the driving force behind “repeal the ACA” has been the 3.8% Medicare tax on Net Investment Income for high-income taxpayers. After all:
- this is a tax on the top 4% of income earners, who make more than a quarter-million dollars annually on investment income. 96% of the population is never affected by this tax.
- this is a Medicare tax on investment income. Before the ACA, this income was not subject to Medicare tax – those who made all or most of their income from investments paid nothing or little into Medicare