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In the midst of a global pandemic and major recession, the Trump Administration and 18 state attorneys general are expected to file briefs this week ([link removed]) asking the Supreme Court to strike down the entire Affordable Care Act (ACA).

President Trump affirmed his commitment to his Administration’s stance last month, saying “we want to terminate health care under Obamacare ([link removed]) .” Striking down the law would cause millions to lose their health coverage, while delivering a large tax cut to the highest-income Americans and certain corporations.

Prior to the COVID-19 crisis, striking down the ACA would have caused 20 million people to lose health coverage. With the Supreme Court likely to decide the case in 2021, striking down the law would lead to even larger coverage losses, as millions more people are expected to turn to ACA programs for coverage due to the recession.

But there would also be some winners from the lawsuit ([link removed]) , because striking down the ACA would cut taxes sharply for the highest-income Americans and certain corporations. If the Administration’s position prevails:
* The highest-income 0.1 percent households would receive tax cuts averaging about $198,000 per year. This group has annual incomes over $3 million.
* Households with annual incomes over $1 million would receive tax cuts averaging about $42,000 per year.
* Tax cuts for households with incomes over $200,000 would cost the federal government a total of about $30 billion in 2020. That’s over one-third of the federal cost of the ACA’s expansion of Medicaid to low-income adults, meaning that it could pay for health coverage for over 4 million people.


In effect, the Trump Administration is seeking a massive transfer of resources from low- and moderate-income people to those at the top. The lawsuit would also widen racial gaps ([link removed]) , with Black and Hispanic people disproportionately likely to lose health coverage and the overwhelming share of the tax cuts flowing to white people.
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Contact: Caroline Anderson-Gray (mailto:[email protected]?subject=CBPP%20Email%20Response) , 202-408-1080, Director of Digital Strategy

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