Princeton, N.J./New York City/Philadelphia – Tony Panico, a partner with WithumSmith+Brown (Withum) PC and practice leader of the firm’s Healthcare Reform Advisory Services Group, and Tony Nitti, a tax partner and Forbes.com tax columnist whose practice focuses primarily on corporate and partnership tax planning offer analysis and commentary related to Friday’s defeat of the proposed repeal of the Affordable Care Act, commonly referred to as Obamacare, and the highly anticipated tax reform bill
Panico: “Despite a ‘full-court press’ from the Trump administration and a failed attempt to incentivize Republican House members, there will be no change in the current provisions under the Affordable Care Act at this point. Various taxes, such as the 3.8% net investment income tax and the additional .9% Medicare tax, are here to stay. This will be the case until one of two scenarios plays out in the future, if at all:
- “A new replacement healthcare bill is developed, even though the GOP claims it is redirecting its course
- “These taxes are repealed as part of tax reform, next up on the Trump agenda
“Of course, individuals and organizations should continue to comply with all other Affordable Care Act provisions, such as the individual and employer shared responsibilities. In the wake of the bill’s defeat last Friday, I continue to believe that smaller legislative measures, as opposed to one large act, may be most efficient and effective in replacing the law.”
Nitti: “While the plan to replace the Affordable Care Act included an overhaul of nearly all the taxes created under Obamacare, it was a foreshadowing of things to come as the Administration quickly moves on to tackle tax reform. This ordering of Obamacare first, tax reform second is more than ideological; it’s procedural. Republicans prefer using the streamlined reconciliation process that requires a simple majority (51 votes) in the Senate, where Republicans currently hold 52 seats, while also avoiding a Senate filibuster.
“The president and his administration are wise to set their failed healthcare legislation aside and try their hand at more meaningful tax reform. Does the healthcare bill’s defeat bode poorly for tax reform? Will the highly anticipated bill include the border adjustment tax? And will it have a middle-class tax cut incorporated to attract Democratic support? We will have to employ a ‘wait-and-see approach’ in anticipation of the House Ways and Means Committee’s proposed tax bill sometime this spring.”
Panico is a partner and practice leader of the firm’s Healthcare Reform Advisory Services Group. An expert in Patient Protection and Affordable Care Act, he is a licensed certified public accountant in the states of New Jersey and New York.
A specialist in providing tax compliance and consulting services to the healthcare and non-profit sectors, his focus is on serving integrated healthcare delivery systems, hospitals, medical centers and their affiliates, physicians and physician groups. Additionally, he is a frequent speaker on various healthcare tax related topics.
Panico is a graduate of Albany State University in Albany, New York, with a bachelor’s degree in finance and marketing and Pace University’s Lubin School of Business, from which he earned a M.S. in accounting. He is a member of the New Jersey Society of Certified Public Accountants (NJSCPA), Healthcare Financial Management Association (HFMA) where he sits on the Board of Directors and the American Institute of Certified Public Accountants (AICPA).
Nitti is a tax partner whose practice focuses primarily on corporate and partnership tax planning, with a concentration on tax policy and key court decisions. A certified public accountant in the states of New Jersey and Colorado, he was recently engaged by Bloomberg to review the 2016 presidential candidates’ tax returns and tax plans. In addition, he has a featured blog on Forbes.com, entitled “The Nitti Gritty.”
Nitti also is a sought-after industry educator as well as a Forbes.com contributor. He has authored or co-authored numerous articles and book excerpts focusing on a wide range of tax issues as well. Nitti is a respected voice in the tax community whose opinions and commentary are sought after by journalists, clients and business leaders alike. He earned a bachelor’s degree in accounting from The College of New Jersey and a master’s in taxation from the University of Denver Graduate Tax Program. He is a member of the American Institute of Certified Public Accountants (AICPA) the New Jersey Society of Certified Public Accountants (NJSCPA), and the Colorado Society of Certified Public Accountants (COCPA).