CCH Tax Day Report
President-elect Donald Trump said on January 11 that repeal and replacement of the Affordable Care Act (ACA) (P.L. 111-148) will be simultaneous. The president-elect spoke briefly about the ACA and a border tax at a news conference in New York.
“We are going to be submitting, as soon as our (Health and Human Services (HHS)) secretary is approved, a plan,” Trump said. “It will be repeal and replace. It will be essentially simultaneous.”
At this time, the Senate is debating a budget resolution, which would set in motion repeal of the ACA (TAXDAY, 2017/01/05, C.1). On January 10, House Speaker Paul Ryan, R-Wisc., said that ACA replacement and repeal would be concurrent (TAXDAY, 2017/01/11, C.1). Democrats have questioned if Republicans have a replacement plan (TAXDAY, 2017/01/11, C.1).
Turning to trade, Trump said that “there will be a major border tax on companies that are leaving.” The president-elect did not describe the make-up of a border tax.
In other ACA news, IRS Commissioner John Koskinen has reported to Congress on the ACA’s individual shared responsibility requirement (known as the “individual mandate”) and the Code Sec. 36B premium assistance tax credit. The ACA generally requires individuals to have minimum essential health coverage or make a shared responsibility payment, unless exempt. Individuals report if they had coverage on their returns.
Koskinen told lawmakers that about 80 percent of taxpayers checked the box on their 2015 returns to indicate they had qualifying coverage all year. Nearly 13 million taxpayers claimed one or more health care coverage exemptions, he reported.
Koskinen also told Congress that approximately 5.3 million taxpayers claimed the Code Sec. 36B credit in 2015. The average credit amount was $3,620. Advance payment of the premium tax credit (APTC) to insurers paid during the year resulted in a net premium credit for 2.4 million filers. The average additional amount received was $670, Koskinen reported.
By George L. Yaksick, Jr., Wolters Kluwer News Staff
Koskinen ACA Report to Congress