Health Reform Policy Update
Joint Committee on Taxation (JCT) on the impact of the 40 percent excise tax on “Cadillac” plans: 81 percent ($163.6 billion) of the $201.4 billion raised by this tax will come from increased income and payroll taxes, and 19 percent ($37.8 billion) will come directly from the excise tax.
JCT: on who pays the “Cadillac” tax: 87% of the burden would fall on Americans making less than $200,000, and more than half on those earning under $100,000.
JCT on the effect of subsidy phase-outs as people earn more income: families earning 150% of the federal poverty line ($32,200) will face an effective marginal tax rate of 59%.
National Taxpayers Union on the effect of limiting the deduction of medical bills to amounts in excess of 10% of a person’s income rather than 7.5%: Of the 10.6 million taxpayers who claim the medical expense deduction, all but 50,000 make less than $250,000 per year.
Isn’t this what John McCain said would happen last year during the election? All the pie-in-the-sky promises made by Obama would be paid for by the hard working middle class.
How prescient he was.
Every time I learn more bout the Baucus bill, the less I like it.
Have you noticed that the Democrats on Capitol Hill never want to talk about who is going to pay for the cost of their reform?
This is what happens when legislators get behind closed doors. The oxes that get gored are the ones who are not in the room. Which, in this case, are the American people.