GOP Efforts to Repeal ACA Unsuccessful
September 26, 2017
After CBO score, GOP repeal effort appears dead; GOP tax plan likely to include new pass-through business rates; Home prices in 20 cities increase more than forecast; Oil gains, then falls on geopolitical concerns.
- After CBO score, GOP repeal effort appears dead. The nonpartisan Congressional Budget Office released its report of a version of the Graham-Cassidy repeal effort. While the report indicated the bill reduced the deficit by $133 billion over 10 years, it also indicated Medicaid enrollment and health insurance coverage overall would be significantly lower. Senator Collins announced she’d be voting no on the bill. That vote, coupled with no votes from Senators Rand Paul and John McCain, makes it apparent that this last ditch repeal effort is all but dead. As the clock runs out on the Senate’s simple majority rule on September 30, it seems unlikely the GOP will be able to repeal the ACA, a repeal of which was a significant portion of the Republican platform. [Reuters]
- GOP tax plan likely to include new pass-through business rates. The GOP and White House will unveil a new tax plan on Wednesday, which will reportedly include a new “pass through” tax rate for businesses. The vast majority of businesses, particularly small businesses, are considered “pass-through,” whose profits pass on directly to their owners. The new tax plan will likely include a lower corporate tax rate as well, and will reduce the top marginal tax rate and corporate tax rate. Because these tax rates are scored statically, CBO analysis of their impact will likely show a dramatic increase of the deficit, potentially worrisome for the deficit hawk element of the GOP coalition. [Reuters]
Economic Indicators & News
- Home prices in 20 cities increase more than forecast. Home prices in 20 cities in the US increased this past month, beating estimates. Homebuyers are increasingly competing for a limited number of homes, as homebuilding has been relatively slow. A strong labor market has prompted more individuals to consider purchasing a home, and that increased demand for a limited supply has spurred price increases. [Bloomberg]
- Oil gains, then falls on geopolitical concerns. After the Turkish government threatened to “close the valve” on oil exports from the Kurdistan region, oil prices increased over 3%. Traders cashed out at the end of the day, and oil again fell 0.7%. Geopolitical concerns and natural disasters have manipulated oil prices the past month. While oil prices have been quite low, below the $50/barrel benchmark price, efforts of OPEC countries to curb supply and boost prices have been relatively successful. Economists indicated that the “lower longer” pattern of oil prices may be coming to a close. [Bloomberg]