Health Care Reform Likely to Include More Taxes for Many Americans

All of the health care packages are expensive. The House bill is projected to cost $1.2 trillion over 10 years and the Senate Finance Committee bill is projected to cost $829 billion. Taxes will increase if any of the plans are enacted, say experts.

According to a report by the Tax Foundation, a tax research group based in Washington, D.C., wealthy taxpayers in 39 states could pay a top tax rate higher than 50 percent by 2011.

The report combined states' average local tax rates, top state and federal rates with the 2.9 percent Medicare tax and the proposed 5.4 percent health surtax.

Also possibly adding to middle-class tax burdens is a provision in the House plan that requires all Americans to have health insurance.

Large companies would have to offer coverage to their employees, and both consumers and companies would be slapped with penalties if they defy the government's mandate.

"If you choose not to get insurance, you get hit with an excise tax," says Luskin of Trend Macrolytics LLC. "Which is a fancy way of saying a fine or a penalty."

For low-income Americans, the bill would provide subsidies for buying insurance if they don't receive it through an employer. It would also create a federally regulated insurance exchange where individual Americans could shop for coverage.

"There are harmful taxes and taxes that aren't as harmful," says Gerald Prante, a senior economist at the Tax Foundation. Prante says ultimately the final health reform bill will raise taxes on the general public.

"Taxes are necessary evil to finance governments."

-- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430. -- This embed didnt make it to copy for story id = 9090430.
Page
  • 1
  • |
  • 2
Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...