The Fuzzy Logic Behind the Individual-Mandate Repeal
Congress is working hard to reconcile competing proposals for tax reform, with the House of Representatives and the Senate both moving independently in an effort to get a final bill passed by the end of the year. The debate over tax policy has inspired vigorous battles both between the two major political parties and among different factions of Republicans. Yet one new wrinkle in the process involves a completely different yet equally controversial topic: the individual mandate under the Affordable Care Act.
This week, lawmakers have looked at repealing the individual mandate that requires Americans to obtain adequate health insurance or face penalties. Some have looked to get rid of the Obamacare provision all along, but others are focusing on the provision because of the way that the Congressional Budget Office has estimated the impact of an individual-mandate repeal. Repeal could allow lawmakers to make further tax cuts elsewhere, but if the individual mandate does disappear without further changes to Obamacare, the financial reality is unlikely to resemble what the CBO expects.
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Source: Fool.com
