A study released by Families USA, says that as a result of this year’s healthcare reform law, almost 29 million Americans will be eligible for new tax credits in 2014. The total tax break, researchers estimate, will reduce family income taxes by more than $110 billion in just the first year.
In a teleconference with the press, Ron Pollack, executive director of Families USA said that the healthcare reform measures amounted to, “…one of the largest middle-income tax cuts in history…” and that it will enable many U.S. citizens to “…afford premiums that stretch family budgets….”
The study that found these results, called Lower Taxes, Lower Premiums, found that most of the families that will be eligible for these tax credits will employed mainly by small businesses, and will have annual incomes between $44,100 and $88,200 for families of four, or two to four times the the 2010 federal poverty level. “However,” the report said, “because the size of the tax credits will be determined on a sliding scale based on income, those with the lowest incomes will receive the largest tax credit, which will ensure that the assistance is targeted to those who need it the most.” Under these guidelines, a four-person family with annual income of $60,000 that purchases a $15,000 family insurance plan in 2014 would receive tax relief of about $10,200, while a four-person family with annual income of $35,000 would receive tax relief totaling about $13,600.
The roughly 13.8 million people who have no insurance coverage will be eligible for a premium tax credit, and about 14.8 million people with insurance coverage will qualify for the credit, the study said.