The health care and retirement industries are facing a tough time after a pair of major tax cuts were signed into law by President Donald Trump and House Speaker Paul Ryan in the face of resistance from the health and human services departments.
According to a new analysis from The Hill, more than half of the 10 biggest U.S. employers are now considering whether to scale back or exit operations because of the tax overhaul.
The analysis, which was released Thursday, found that nearly a third of the U.N.’s health care workforce is at risk of leaving the industry in 2019, the year the GOP tax plan takes effect.
The report by The Hill and the National Association of Insurance Commissioners also found that health insurance is at the core of the Trump administration’s strategy to shrink the economy and reduce the nation’s workforce, and that the White House is seeking to shift billions of dollars in tax cuts from the rich to the middle class and lower-income Americans in a bid to keep the economy growing.
The administration also wants to shrink a $700 billion corporate tax cut that would be available to companies that file as pass-through entities to avoid paying taxes on their income.
That’s the kind of shift that would cut health care jobs and cost millions of Americans their jobs.
The House Republican tax bill also would cut the corporate tax rate to 20% from 35%, eliminate the estate tax and eliminate a deduction for charitable contributions.
Those changes are designed to help the wealthy, who typically pay a higher tax rate than low- and middle-income households.
The tax cuts would help the health sector because the bill allows them to deduct medical expenses from their taxable income.
But that benefit would disappear when the plan is fully phased in.
That would put a significant dent in the health industry’s $2.7 trillion annual budget, the report said.
A growing number of insurers and employers have already said they will pull out of the health insurance marketplaces set up under the Affordable Care Act.
Many also are calling for a delay to the tax cuts.
The nonpartisan Congressional Budget Office has estimated that about a third to half of health insurance companies could close, as many are trying to preserve profits or to meet other financial requirements.
Trump is already working to push through a health bill that would give corporations and individuals more money to spend on healthcare while slashing the taxes that pay for the program.