Health-Law Taxes Divide the GOP, Signaling a Shift

WSJ reports TN Senator is arguing to retain the 3.8% investment-income tax and a 0.9% payroll tax

WASHINGTON—Republican efforts to pass a health-care bill have revealed a party fissure on tax policy with potentially far-reaching repercussions.

“In his latest attempt to rewrite President Barack Obama’s signature health-care law, Senate Majority Leader Mitch McConnell (R., Ky.) retained a 3.8% investment-income tax and a 0.9% payroll tax that apply to individuals earning more than $200,000 and married couples earning more than $250,000.

The decision to keep the taxes instead of repealing them satisfied senators such as Mike Rounds of South Dakota and Bob Corker of Tennessee who were worried about losing revenue sources and about the optics of reducing taxes on high-income households. But it infuriated conservatives who see the taxes as a drag on economic growth and view removing them as an important part of repealing the 2010 Affordable Care Act….”

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