Republicans in the U.S. House of Representatives released preliminary bills to repeal and replace the Patient Protection and Affordable Care Act, also known as Obamacare. Collectively, these bills will be called The American Health Care Act.
They are designed to enable taxpayers to afford health insurance, but it is hard to say which provisions will prevail through the process of developing a bill that will eventually be enacted.
Clients of Hall & Company should be aware of two key tax provisions that are proposed. The first is the repeal of the 3.8% net investment income tax. This proposed provision would be repealed for tax years beginning next year.
The other proposed provision would repeal the 0.9% Medicaid surtax. The effective date would also be for tax years beginning in 2018.
It will be interesting to watch the evolution of this proposed legislation. The House Ways and Means Committee is scheduled to mark up these bills on March 15.