Hatch: Cut health law's subsidies in tax debate

Senate Budget Committee Chairwoman Patty MurrayPatty MurraySenate confirms Labor Secretary Acosta Dems unveil bill targeting LGBT harassment on college campuses Trump said he would create ‘more jobs and better wages’ — he can start with federal contractors MORE (D-Wash.) will release her budget outline Wednesday. It's expected to call for more than $1 trillion in new revenue from eliminating tax breaks, but will preserve funding for the Affordable Care Act.

The health law's insurance subsidies — administered as refundable tax credits — will begin to flow next year. But by 2017, they'll be the second-biggest healthcare tax expenditure at $96 billion, Hatch said.

The ACA provides subsidies on a sliding scale, based on income, to help pay for private health insurance. The subsidies are only available to people who purchase coverage through a new insurance exchange and do not get their coverage through an employer.

The tax exclusion for employer-based healthcare benefits is the biggest expenditure in the tax code.