President Trump’s joint address before Congress hasn’t deterred members of the Freedom Caucus from opposing refundable tax credits in any Obamacare replacement package.
Rep. Mark Sanford, R-S.C., a member of the Freedom Caucus, admitted Wednesday that the GOP caucus is divided over whether to use refundable credits or tax deductions to lower the cost of insurance.
“I think there is still a significant divide on how you deal with refundable tax credits,” said Sanford, who sponsored legislation in the House that would use increased deductions to lower the cost of insurance for people on the individual market, which is for people who don’t get insurance through their job.
Sanford and other conservatives have slammed a leaked bill that surfaced last week, dated Feb. 10, that aims to use refundable tax credits to lower insurance costs. The tax credits would be pegged to age, meaning older people get more money than younger people.
The credits are different from the structure of Obamacare’s credits that are based on income, with lower-income people getting more money.
The Freedom Caucus and several conservative senators derided the tax credits, calling them government entitlements.
President Trump appeared to weigh in on the issue during his address before a joint session of Congress Tuesday night when he mentioned tax credits in his speech.
House GOP leaders said that meant the president endorsed the tax credit approach.
“That was a very strong signal,” said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee, which is helping to draft the legislation. “He made that not at a coffee roundtable but at a joint session in Congress.”
Brady added that lawmakers have reached consensus on “90 percent” of the healthcare bill, a sentiment echoed by Sanford. But the sticking point on tax credits versus deductions remains.
