But Senate sources said it is likely that two Obamacare taxes on the wealthy will be kept in place – a 3.8 percent net investment tax and a 0.9 percent payroll tax that helps finance Medicare – which would appeal to moderates who have balked at the prospect of cutting taxes for the wealthy while reducing benefits for the poor.
“Obviously that’s the direction I think that a lot of our members want to move, is to keep some of those (taxes) in place and be able to use those revenues to put it into other places in the bill,” Thune said, while stressing that no decisions were final.
Republicans could also retain Obamacare’s limit on corporate tax deductions for executive pay in the health insurance industry, one Senate source said.
It was unclear whether the bill would include a proposal by conservative Republican Ted Cruz that would allow insurers to offer basic low-cost healthcare plans that do not comply with Obamacare regulations.
Cruz argues it would help to lower premiums, but critics say it would allow insurers to offer skimpier plans that may not cover essential health benefits while also charging more for more comprehensive, Obamacare-compliant plans.
The Senate Republican healthcare bill unveiled last month would phase out the Obamacare expansion of Medicaid health insurance for the poor and disabled, sharply cut federal Medicaid spending beginning in 2025, repeal many of Obamacare’s taxes, end a penalty on individuals who do not obtain insurance and overhaul Obamacare’s subsidies to help people buy insurance with tax credits.
Democrats are united in opposition to the bill and at least 10 Republicans have said they oppose the existing draft. The House of Representatives passed its own version in May.
Moderate Republicans are uneasy about the millions of people forecast to lose their medical insurance under the draft legislation, and hard-line conservatives say it leaves too much of Obamacare intact.
Democrats call the Republican legislation a giveaway to the rich that would hurt the most vulnerable Americans.