The competing Republican tax bills, one from the Senate and one from the House, are good attempts but they’re missing one component, according to Rand Paul.
The Kentucky Senator has been one of the leading proponents of Obamacare repeal and even wrote his own bill to accomplish that task.
Unfortunately, along with all of the GOP’s other attempts to repeal the ACA, the bill was killed by liberal Republicans who only oppose Obamacare in election years.
Nonetheless, this libertarian Republican hasn’t given up on repealing Obamacare.
Rand Paul has announced he will introduce an amendment to the Senate’s tax bill that will repeal the individual mandate, the linchpin holding the Affordable Care Act together.
Rand Paul’s amendment to repeal the individual mandate shows Republicans how it’s done
While the rest of the Republican party sits idly by content with keeping Obamacare in place, Rand Paul has been working tirelessly to find ways to chip away at the behemoth.
While the multi-thousand page bill consists of various parts, that each deserve to be repealed, the key provision is the individual mandate.
The individual mandate requires all Americans to purchase health insurance and is one of the largest expansions of government power in history. It is required for the bill to function as it attempts to ensure that enough healthy people will buy insurance to subsidize the cost of insuring the sick.
Unfortunately, as with the best laid plans, that isn’t the case. The individual mandate has merely allowed insurance companies to charge higher and higher rates for the same plans while they line their pockets.
Insurance pools are in no better shape now than they were a decade ago. But healthcare companies are enjoying record profits because their products must be purchased by law.
It is therefore understandable why repealing the individual mandate has long been a goal of conservatives and libertarians. Although, the only one that’s kept his nose to the grindstone to accomplish that task is Rand Paul.
Repealing the individual mandate is equivalent to a major tax cut for all Americans
Attaching such an amendment to the Senate’s tax bill may seem to be unrelated at first. Although, the effect that repealing the individual mandate will have will be similar to a tax cut according to Rand Paul:
The mandate repeal is a promise we all made and we should keep. It also allows an additional $300 billion-plus in tax cuts.
My amendment will fix a problem in the Senate bill where many taxpayers would see a tax increase because of the loss of state and local deductions.
Repealing the individual mandate will provide a needed incentive to get Republicans from high tax blue states on board with reform. They’ve long promised their constituents they would repeal Obamacare, and need a way to offset the elimination of the state and local deduction.
Rand Paul’s amendment acts as one stone to kill those two birds. The compromise is a major legislative achievement and Republicans would be foolish not to adopt it.
(Photo of U.S. Senator Rand Paul speaking with attendees at the 2015 Iowa Growth & Opportunity Party at the Varied Industries Building at the Iowa State Fairgrounds in Des Moines, Iowa by Gage Skidmore)