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.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.
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.
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.