Health-Law Taxes Complicate GOP's Repeal Strategy

Republicans eager to scrap the 2010 health-care law are wrestling with whether to immediately cut off the tax revenue it brings in.

Among the thorniest issues GOP lawmakers face as they hash out how to try to dismantle the Affordable Care Act is that getting rid of the health law's taxes now would eliminate a source of revenue they would need to fund the two- or three-year transition period until any replacement plan is in place. Repealing the taxes would throw into question how to fund the subsidies that help many people get health coverage by offsetting their premium costs, health analysts say.

Ending the taxes now might also mean that Republicans, as they try to write a replacement for the Affordable Care Act, would face a tough vote to approve new taxes, find spending cuts or create a system where fewer people are insured.

But Republicans also want to fulfill a longstanding campaign pledge to gut the health law, which imposed taxes that Republicans say have driven up health-care costs.

"With more than $1 trillion in new taxes, Obamacare is riddled with bad tax policy, and members are currently examining how to best address this issue," said Senate Finance Committee Chairman Orrin Hatch (R., Utah).
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