Nearly half of the tax benefits from the Senate's Obamacare replacement bill would go to the top 1 percent of households by income, according to a new analysis.
About 45 percent of the benefits from the Republican health-care bill's tax cuts will go to households making $875,000 or more, according to the analysis by the Urban Institute and the Brookings Institution's Tax Policy Center released Monday. That group would see an average rise in after-tax income of about 2 percent, versus a 1 percent increase for the lowest 20 percent of households and 0.4 percent for middle-income Americans.
The Senate proposal, the Better Care Reconciliation Act, like a similar bill that passed the House, repeals an array of Obamacare taxes including the 3.8 percent tax on net investment income. It takes the 0.9 percent Medicare surtax off the books in 2023 and delays the so-called Cadillac tax on high-cost employer plans until 2026, among other tax-related measures in the plan.
The Tax Policy Center breaks down how much of the tax cut would go to each American income group.