Replace subsidies with tax credits. That is really going to help those with less means

[still_one]

I really despise the republicans

[GP6971]

1. and unless we have some defections

they're going to get their way. This country is so fucked.

[still_one]

2. yes it is

[Liberal In Texas]

3. It's a ridiculous idea, therefore it must be a Repuke one.

If you need a subsidy it means you don't have enough money to buy insurance. And even if the tax credit is incredible (it won't be) these folks couldn't possible afford it until they file for taxes to get the money back.

[still_one]

4. unbelievable

[cilla4progress]

5. Because you know

Some people pay no federal income tax...

[VOX]

6. "Replacing" something concrete with an abstraction...

Is no replacement at all.

[Cicada]

7. Obamacare subsidies are also tax credits

The insured apply their anticipated premium tax credits to pay for health insurance. If your income ends up higher or lower than anticipated you pay extra, or get a refund, when you file your tax return. The problem with the Republican plan is that their refundable credit is too little for poor people. A thirty year old person with $17500 income might get a $6000 credit under Obamacare but will only get $2000 under Trumpcare. And the more affluent get too much of a credit. The same person making $70000 gets nothing under Obamacare but gets the same $2000 under Trumpcare. Trumpcare will not provide enough for millions to be able to afford decent coverage and will cost massive amounts for those who already can afford insurance. It is super stupid.

[stopbush]

8. Not true.

We are on Obamacare in CA. Our monthly premium is reduced by over $1000 because Obamacare pays $ directly to our health provider every month.

If our income goes up, we may have to pay back some of that subsidy on next year's tax filing.

With a tax credit, you pay the entire high premium all year, and then get to deduct if from your taxes. In other words, wait for over a year for your "subsidy."

Truth is, were our health insurance not subsidized every month, we would not have it. We couldn't afford $1300 a month.

[Cicada]

10. The Obamacare premium tax credit is paid in advance

Your Obamacare tax credit is paid in advance to your health insurer. Look at IRS form 1095-A, health insurance marketplace statement. Part III column C is titled "monthly advance payment of premium tax credit." That shows the amount of your Obamacare health insurance premium tax credit paid in advance to your health insurer. So the Trumpcare health tax credit is also a refundable tax credit (meaning you get it even if it exceeds your tax liability) just like Obamacare tax credit. The problem is not that one is a credit and the other is a subsidy - they both are BOTH tax credits and subsidies. The tax credit IS the subsidy. The problem is that Trumpcare provides too little for those with limited income and subsidizes more affluent people who can already afford health insurance.

The earned income tax credit can also be paid to taxpayers in advance through their paychecks if the employer is willing to do that.

[haele]

9. The problem with tax credits is that you have to spend your money first...

So, for that $2000 tax credit, you have to come up with the $2500 - $5000 for Heath insurance the year prior.
If you can't arrange your witholdings so that the credit is reflected in how much is taken out of taxes and you might be able to get an extra $120 or so a month to help pay for that insurance, you're pretty much screwed.
But if you aren't making closer to 6 figures, you're screwed anyway, because there will not be any effective coverage available for $120 a month, so you still have to pay out of pocket 3 or 4 times that a month just to pay the premium.

This proposal basically drives the poor and lower income population (working or not) to decide whether or not to purchase a high-deductable insurance plan or keep a safe, reliable roof over their family's head.

Haele