It's enough to make you love the law.
With very little fanfare, Obamacare just raised
$72 million from health insurance companies. To be more precise, it raised that money from health insurance company CEOs by closing a tax loophole.
For decades now, the United States has limited the corporation tax deduction for executive pay to $1 million for the company's top four employees. That deduction cap, however, excluded performance bonuses, creating a massive loophole allowing companies to pay their top employees more than $1 million without facing a higher tax burden.
Obamacare quietly changed the rules for health insurance executives. It lowered the cap to $500,000—and, in that amount, now includes all forms of compensation. The health insurers' regulation also widens the scope of who it hits: while the general deduction cap only applies to the company's top four employees, the Obamacare rule hits any executive earnings more than $500,000.
That's how much was raised just from the 10 largest insurance companies, and just 57 executives. So this estimate is likely underestimating how much was raised by the law. While $72 million is a tiny drop of the bucket in terms of the federal budget, for health care alone, it's a good chunk of money.
Imagine how much the government could raise if it closed that loophole in every industry. No wonder Republicans hate Obamacare so much; It's working to insure people and it's raising money. What a nightmare for them.
