Democrats Contemplate Massive Tax Increase to Pay for Obama's Healthcare Plan
By Peter Roff, Thomas Jefferson Street blog
During his victorious presidential run, Barack Obama promised he would not raise taxes on the middle class. "Under my plan," Obama told a New Hampshire gathering, "no family making less than $250,000.00 a year will see any form of tax increase."
Somebody wasn't paying attention.
Democrats in the House of Representatives are now contemplating massive tax increases in order to raise some of the revenues they need to fund Obama plan's for a government takeover of the U.S. healthcare system.
According to published reports, tax increases under consideration include:
- A 10 cents per can tax on soda and other sugary drinks
- A 2 percent increase on income taxes for single taxpayers earning more than $200,000 per year
- A 2 percent increase on income taxes for households earning more than $250,000 per year
- A new employer payroll tax targeting 3 percent of employers' health care expenditures
- Taxing certain employer-provided health insurance benefits
- Higher taxes on alcohol
- An increase in the Medicare payroll tax
- A European-style Value Added Tax or VAT of 1.5 percent or more
Obama's promise was already broken when he signed into law an increase in the federal excise tax on cigarettes. What the Democrats are looking to do on healthcare will shatter it. The Democrats' "Kennedy Bill"—the term used to refer to the primary Senate proposal—plan doesn't even provide the universal coverage they've promised. Yet, while leaving nearly one-third of those currently without insurance uncovered, it will cost the American taxpayers at least $1.6 trillion over ten years; some estimates have the cost as high as $4 trillion.
As Senate Republican Leader Mitch McConnell, R-Ky., said last week, "These are staggering amounts of money for taxpayers to contemplate, which is why it's troubling to a lot of people when we see committee members in such a rush to pass this legislation before the Congressional Budget Office even has a chance to fully estimate its cost. On something as important to the American people as health care reform, cost and effectiveness should be a higher priority than speed."
The Congressional healthcare stampede, like the rush to pass the stimulus package, is leaving a lot of unanswered questions in its wake—questions that can't be answered, truthfully, in one night of primetime programming on ABC. Congress needs to slow down and to let the American people know what they're doing. After all, it is the people who must pay the bill.
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Reader Comments
No Plan
Other than the usual "its broken" there has been no fresh ideas for medical cost containment coming from the Obama camp. It really is pathetic when Obama refers to the "waste" in the system. Although its easy to hate the dreaded HMO the "waste" as he puts it doesn't come from insurers. Their profit levels are already regulated on the state level.
The real costs come from facility charges in hospitals who run every test imaginable to confirm a diagnosis....Guess what....That's partially why we have great healthcare. Any substitute will lead to rationing and inferior care for the 200+MM with insurance. As for the waste in that system you minimize that by limiting the liability through tort reform.
The uninsured who cant get coverage because of pre-existing conditions should have been addressed to large degree under Clinton's HIPAA law. Don't revamp the system to call it your own..Obama..Expand the law to reduce or eliminate declinations.
Federalize Medicaid so the poor and unemployed have coverage options, create a separate Federal Long Term Care facility program, require documentation for illegals to participate in either and remove the burden on the states who for the most part have screwed the management of these programs up.
Set standard reimbursement levels for all insurers, providers, facilities so that you truly create a competitive private market.
Don't screw up one of the things that make us great.
Another solution
Don't pass any health plan unless it also applies to Congress.
PAYING ATTENTION
I GUESS MY CONCERN IS WHY IS TALK RADIO ALL SAYING AND SENDING THE SAME MESSAGE AND YET THE AMERICAN PUBLIC APPARENTLY PAYS NO ATTENTION TO WHAT IS COMING. WHEN WILL WE ALL SMARTEN UP WHEN IT IS TO LATE TO GET OUR FREEDOM BACK? OBAMA HAS TO BE STOPPED. WE DON'T HAVE 4 YEARS TO WAIT TO STOP HIM. WE NEED TO CALL OUR REPRESENTATIVES AND GET THEM TO ACT IN OUR BEST INTEREST AND WE NEED TO DO IT NOW
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