To amend the Internal Revenue Code of 1986 to extend the enhancement of the health care premium tax credit.
Summary
H.R. 6074 proposes to amend the Internal Revenue Code of 1986 to extend enhancements to the health care premium tax credit. Specifically, it extends the increased premium assistance amounts and the rule allowing the credit to taxpayers whose household income exceeds 400% of the poverty line. These extensions would apply to taxable years beginning after December 31, 2025, pushing the expiration date from January 1, 2026, to January 1, 2029.
Expected Effects
The bill's passage would ensure that eligible individuals and families continue to receive enhanced financial assistance for health insurance premiums. This would prevent a potential increase in healthcare costs for those who rely on the premium tax credit. The extension aims to maintain affordability and access to healthcare coverage.
Potential Benefits
- Continued access to affordable healthcare coverage for eligible individuals and families.
- Financial relief for those with household incomes exceeding 400% of the poverty line.
- Stability in the health insurance market by maintaining enrollment levels.
- Reduced risk of individuals foregoing necessary medical care due to cost.
- Potential for improved health outcomes due to consistent coverage.
Potential Disadvantages
- Increased government spending and potential budget deficits.
- Potential for the tax credit to incentivize higher healthcare costs.
- Complexity in the tax code due to the extension of specific provisions.
- Possible dependence on government subsidies for healthcare.
- May not address the underlying issues of healthcare affordability beyond subsidies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it seeks to promote access to healthcare. Article I, Section 8 grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. The expansion of tax credits falls under this power, as it aims to improve healthcare access for a segment of the population. However, the extent to which such interventions should be pursued is a matter of ongoing debate.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).