Grassley, Finance Committee Republicans: Unsustainable Mandatory Spending Will Fuel Inflation Crisis

WASHINGTON – Sen. Chuck Grassley (R-Iowa) fellow Senate Finance Committee Republicans to push back on a Senate Democrat proposal that would double down on skyrocketing spending during record-high inflation. That proposal would extend poorly targeted, badly designed Obamacare subsidies, including for Americans with sizable six-figure salaries.

 

Last year, the American Rescue Plan Act (ARPA) increased the value of the Obamacare “premium tax credits,” or PTCs, allowing individuals earning over 400 percent of the federal poverty level to accept the credits for the first time. As part of their reckless tax-and-spending spree, Democrats are seeking to extend the expansion. 

 

“Congress should be working to address the harmful effects of inflation and taking steps to address our ballooning debt crisis, driven by unsustainable mandatory spending. The wrong approach is to double down on skyrocketing spending during record-high inflation by extending the poorly targeted and badly designed Obamacare subsidy hikes, including for Americans with sizable six-figure salaries,” the lawmakers wrote.

 

“CBO estimates a permanent expansion of the Obamacare subsidies alone would cost $220 billion over the next decade. Instead of improving the quality of Obamacare plans, this proposal would simply pass more of the costs onto taxpayers… The proposal also benefits wealthy Americans more than those with low incomes. Households making above 400 percent of the federal poverty line (FPL) would benefit far more than those currently earning near the poverty line, since the latter group is already largely eligible for subsidy support,” the letter continues.

 

“Exacerbating Obamacare’s problematic subsidy design to the benefit of upper-income Americans only worsens the structural financial problems facing our health care system. The Administration and Congressional Democrats should abandon this misguided course of action and instead combat the scores of real issues facing workers and families,” the lawmakers conclude.