Since passage of the Affordable Care Act (ACA), taxes and health care have become more intertwined than in previous years. The ACA created a number of new taxes and fees. However, the ACA’s individual mandate was repealed on a bipartisan basis.
Biden proposed strengthening the Affordable Care Act (ACA) by eliminating the 400 percent income cap on tax credit eligibility and lowering the limit on the cost of overage from 9.86 percent of income to 8.5. Additionally, he would propose expanding a variety of family tax credits to increase coverage and lower premiums.
On November 10, the Supreme Court heard arguments in California v. Texas, a suit seeking to invalidate the entire law on constitutional grounds. Obviously, the outcome of that case could significantly impact any Biden plans on health care.
For more information on this tax policy update, contact Larson & Company.