More Republican senators say they are willing to keep an Obamacare tax on investments for wealthy people as a way to fund changes to the Senate healthcare legislation.
However, conservative senators remain resistant and say they want all of the law’s taxes to go.
At issue is a 3.8 percent tax on investments for people making more than $250,000 a year. The bill would eliminate the tax, alongside all of the other Obamacare taxes, but has opened up Republicans to attacks from activists and Democrats for supporting a tax break for millionaires.
But senators looking for more money to boost tax credits or Medicaid are looking at keeping the tax and are gaining traction in the GOP conference.
“If it takes something like that to get members on board to move this process forward we have to consider that,” said Sen. John Thune, R-S.D., the third-ranking GOP senator. “There are a number of our members who care about that.”
Sens. Mike Rounds, R-S.D. and Bob Corker, R-Tenn., have been calling for keeping the tax. Rounds told reporters Wednesday that keeping the tax could net about $272 billion over a decade.
Corker expressed concern over the inclusion of repealing the tax on high-income people while not providing adequate subsidies to low-income people.
“But leaving that as it is, repealing that tax and at the same time not providing lower-income citizens with enough money to purchase health plans — that’s not a sustainable proposition,” he said. “It’s certainly not one that is worthy of becoming law.”
But conservative senators don’t like the idea and say the bill already doesn’t repeal enough of Obamacare.
“I’m for repealing Obamacare, which includes all the taxes in Obamacare,” said Sen. Rand Paul, R-Ky., who banded together with three other conservative senators to oppose the bill mere hours after it was announced.
But Paul wouldn’t say that keeping the tax is a deal breaker for him.
“The bill needs to be a repeal bill,” he said. “Right now it keeps Obamacare.”
A representative for Sen. Mike Lee, R-Utah, another conservative holdout, also said the senator wants all of the taxes to be repealed.
Sen. Ted Cruz, R-Texas, was also not in favor of keeping the investment tax.
“I think one of the central issues of this election was the support for tax cuts and tax reform,” he said.
Cruz wouldn’t say if keeping the tax would be a deal breaker in terms of gaining his support, however.
Sen. Ron Johnson, R-Wis., who opposes the bill in its current form, seemed open to the idea, albeit because leadership wants to keep “so much of the subsidies and tax credits” of Obamacare.
“I think we should seriously consider maintaining some of the tax revenue to fund those subsidies,” he said. “That would probably be the first one to take a look at.”
Sen. Thom Tillis, R-N.C., was also open to the idea if it drums up support for the bill.
“We’ve gotta be willing to look at any options that get members on board,” he said. “I’m open to anything right now to get to 51 votes.”
