Sen. Claire McCaskill spoke out Wednesday afternoon during a Senate Finance Committee hearing on the markup of the Senate’s tax reform bill.
The version of the bill repeals the Affordable Care Act’s individual mandate, a tax levied on individuals without health insurance.
The non-partisan Congressional Budget Office sent out a report that claims while repealing the mandate there will be an increase if revenue by over $300 billon, yet 13 million people will lose their insurance over the next ten years and insurance premiums would increase by 10 percent every year after the repeal.
Sen. McCaskill (D-Missouri) said it was odd that repealing a tax would actually increase and not decrease government revenue.
“Where do you think the 300 billion dollars is coming from? Is there a fairy that’s dropping it on the Senate,” Sen. McCaskill asked.
McCaskill says the $300 billion would be coming from decreases in healthcare subsidies and Medicaid costs.
“If you’re getting rid of a tax how does miraculously $320 billion dollars show up for you to spend on corporations? I’ll tell you why, because you’re eliminating $185 billion dollars in payments of subsidies to people who are getting insurance,” said Sen. McCaskill.
Senate Finance Committee Chair Orrin Hatch (R-UT) continued to debate with Sen. McCaskill about the benefits of the modified tax reform bill.
“If you’ll yield. If you would just yield for a second, there are no cuts to Medicaid in this bill,” said Hatch.
“The money you’re spending is coming from Medicaid and subsidies to people who make less than $50,000,” Sen. McCaskill said.
The Finance Committee is expected to approve the tax bill by the end of this week.
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