President Donald Trump celebrated the repeal of the Obamacare tax on consumers who chose not to purchase health care during the State of The Union address Tuesday night.
“We eliminated an especially cruel tax that fell mostly on Americans making less than $50,000 a year, forcing them to pay tremendous penalties simply because they couldn’t afford government ordered health plan,” Trump said. “We repealed the core element of the disastrous Obamacare, the individual mandate is now gone.”
Though Republicans failed to follow through on campaign promises to replace and repeal Obamacare, the individual mandate was repealed as part of the sweeping tax reform bill pushed through Congress by Republicans in December.
The mandate repeal will save $300 billion in federal revenue while resulting in 13 million more uninsured Americans over the next decade, according to the Congressional Budget Office (CBO). While the individual mandate effectively amounts to a tax placed on consumers who don’t buy insurance, repealing the measure will increase revenue because fewer Americans will be coerced into applying for federal health care subsidies or Medicaid.
Trump touched on health care again later in the speech, praising his administration’s efforts to ease the dismissal of Veterans Affairs employees who fail to carry out their mission.
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