Sunday, 26 March 2017

This Is The Nightmare Scenario For The GOP: A $2 Trillion Funding "Hole"

Zero Hedge



When one strips away the partisan rhetoric and posturing, the practical impact of Friday's GOP failure to repeal Obamacare has a specific monetary impact: approximately $1 trillion.
Since the ObamaCare repeal bill would have eliminated most of the 2010 health law’s taxes, this would have lowered by a similar amount the revenue baseline for tax reform. Essentially, with the ObamaCare taxes gone, it would have been easier to pay for lowering tax rates. Now, if Republicans want to eliminate the ObamaCare taxes as part of tax reform and ensure the bill does not add to the deficit - which they need to do to assure Trump's reform process continues under Reconciliation, avoiding the need for 60 votes in the Senate - they will have to raise almost $1 trillion in revenue.

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