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NTU writes in support of H.R. 6088, the “Total Repeal of the Unfair Taxes on Healthcare(TRUTH) Act”
July 27, 2012
The Honorable David SchweikertUnited States House of Representatives1205 Longworth House Office BuildingWashington, DC 20515
Dear Representative Schweikert:
On behalf of the 362,000 members of the National Taxpayers Union (NTU), I write in support of H.R. 6088, your “Total Repeal of the Unfair Taxes on Healthcare Act” (or, TRUTH Act). This bill takes the important step of repealing a dozen of the new or higher taxes in President Obama’s Patient Protection and Affordable Care Act (PPACA), saving taxpayers roughly $500 billion,
Although we may disagree with its decision, the Supreme Court’s ruling that upholds the individual mandate of the 2010 health care law under the taxing powers clause of the Constitution only makes the task of repealing this and other PPACA provisions more urgent. Not only is PPACA an outrageous overreach of government into some of the most profound and personal decisions an individual can make, it is also packed with enormous and costly taxes that hurt families and small businesses.
On top of repealing the individual mandate tax and employer mandate taxes the legislation also tackles other costly job-killers. Removing the 2.3 percent excise tax on medical devices removes a tax burden – amounting to tens of billions of dollars – about to cripple an industry that provides 432,000 jobs in the U.S. Indeed, manufacturers have already begun laying off and freezing workforces in an effort to cut costs ahead of the January 1, 2013 hike.
Well over $100 billion in savings for taxpayers comes from repealing the 3.8 percent surtax on many forms of investment income. A tax on investment means less capital is available to invest in the economy, leading to lower productivity and lower wages.
H.R. 6088 also rolls back the prohibition imposed by PPACA on using Flexible Spending Arrangement (FSA) or Health Savings Account (HSA) funds to purchase over-the-counter medicines without a doctor’s prescription, as well as eliminates the increased tax on nonqualified distributions from HSAs. The TRUTH Act would restore these popular cost-saving options for consumers. Furthermore, the bill would block a detrimental PPACA provision that will soon impose additional limits on itemized medical expense deductions.
The TRUTH Act goes a long way toward the important work of throwing off PPACA’s onerous yoke on our economy. It is important that lawmakers take every opportunity to protect America’s from PPACA’s many harmful facets. Still, there is much more to be done not only to fully repeal the legislation, but also replace it with free-market reforms that lower costs and protect consumer choice and liberty.
NTU is pleased to endorse the TRUTH Act, and we urge all Representatives to join you by co-sponsoring it.
Sincerely,Nan SwiftFederal Affairs Manager