A key revenue item in the bill: a 5.4% income tax increase on couples earning more than $1 million per year, and a 1% increase on incomes over $350,000 per year. Capital gains would also be subject to the tax, the Associated Press reported Tuesday. The bill would raise an estimate $500 billion over the next decade to help pay for universal health care.
Bill contains extensive cuts
The bill would also initiate hundreds of billions of dollars in cuts in projected Medicare and Medicaid spending. Employers would also face a charge of 8% of an employee's salary for each uninsured worker, although there would be exemptions for small businesses.
The legislation would also establish a government run health insurance program to compete with private insurance companies, The AP reported.
Political/Economic Analysis: As I outlined earlier, the generally cooperative stance of hospitals, doctors, pharmaceutical companies, and health insurers -- driven by the specter of even larger Democratic Party majorities in 2011 -- helped provide the constructive climate needed to move health care reform legislation forward this year. However, the Democratic Party's less-cohesive, ideologically-wide coalition meant that there is still a chance for the Dems to 'snatch defeat from the jaws of victory.' But this bill's emphasis on prevention and wellness, and on taxing those who've benefited the most from the American free enterprise system, should pass the House; several modifications are expected in the Senate.
Further, in exchange for modest concessions, the Obama administration should try to recruit selected Republican Senators to vote for the bill -- particularly those who are up for re-election in 2010 and are vulnerable to losing their Senate seat. However, if that's not possible, or if Senate Republicans are just as obstructionist as House Republicans (all of whom will undoubtedly vote against the bill), the administration should simply implement filibuster-proof, numerical democracy and concentrate on having the bill pass with just the 60 Democratic Senators and a few others.
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Financial Editor Joseph Lazzaro is writing a book on the U.S. presidency and the U.S. economy.











Reader Comments (Page 1 of 1)
7-14-2009 @ 6:46PM
jon_audino19 said...
obama promised the redistribution of wealth and he is definitely keeping that promise.
7-14-2009 @ 7:26PM
Sheldon L said...
...or just let Goldman Sachs pay for it. ;-)
7-14-2009 @ 8:44PM
crest1954 said...
Why do they not just instute a pole tax.
7-14-2009 @ 9:45PM
hsr0601 said...
The runway premiums might explain why the middle class and housing market collapsed. Today the costs running out of control have led the people worrying about losing their job, coverage, and denial of care to save the stimulus money increasing the unemployment index.
7-14-2009 @ 9:51PM
Paul said...
I don't see how charging the rich for health benefits is the answer to our problems. I don't make a million dollars but I can't support this. It goes way beyond that. We need to stop allowing the drug companies to advertise their poison on TV every 5 minutes, improve our food by removing much of the stuff that makes us sick to begin with, educate the people on preventative and nutrition, and introduce alternative medicine as a competitor of drugs since it's so much cheaper and very affective from my own personal experience. This is the basics but it goes much deeper. Our goverment just doesn't get it.
7-15-2009 @ 1:03AM
John said...
CONGRESS IS TAKING YOU ALL FOR A RIDE
ask yourself why Congress is making this issue so expensive and complicated?
the bill is 1,000 pages, and it's not done yet
it will not cover all uninsured
and CONGRESS WANTS TO EXCLUDE THEMSELVES from it
Consider this:
Look at how the cost has come down and the quality has gone up on vision correction surgery, with no federal or state intervention
Only basic regulations are in place, and tort laws were not reformed
think about that example, while you read this
Part of the problem is that Congress wants to take 500 - 1500 pages to establish some simple, 1 to 2 page issues.
They seem to like 1500 pages, because they can then slide other things into a bill, and leave parts unwritten, like with Cap and Trade
what would change the whole system in a gradual manner, and not add tons more debt would be the following:
- eliminate the pre-existing clause for health issues, like has been done in multiple states already
now people can get coverage - no matter what the issue
- allow reduced premiums for healthy lifestyles, so smoking and unhealthy lifestyles only penalize the ones who have them, such as the industry already does
If you want to be a chain smoker, and gain 300 lbs - go for it - the only one you hurt is you
- mandate coverage on all citizens, using a basic catastrophic plan as a minimum, such as the existing HSA approved plan structure, which are high deductible and no cap plans
now no one goes bankrupt because they have no coverage, or capped coverage
- phase out employer health plans, since the overall cost per person is higher than individual plans, and layoffs and terminations cause so many to loose coverage going from employer to individual coverage
Now no one looses insurance because of job issues - it's your coverage, so you pay for it
mandate Disability riders in the policy if need be - so a permanently injured person has coverage for the 36 months it takes to go on SSI
Employers are free to compete on the global economy, employees do not have salary caps that automatically factor in health care costs - even when they decline coverage
- make transference of cost illegal, so that private plans are not forced to pay the non-reimbursed costs that Medicare and Medicate do not cover: I should not have to pay for the federal government's refusal to pay.
If Medicare and Medicaid's payment schedule is not enough, providers can choose not to participate, which is the free market system
- set up a fail safe program, that allows people to move to Medicare and Medicaid when legitimate changes in income happen.
- keep the existing COBRA rules in place until the laws take effect
- Keep SCHIP in place to cover lower income children,
- keep means testing, so only people with a real need qualify for assistance
those simple changes will eliminate all but about 16 million uninsured,
those 16 million are here without legal documentation, and that is a different issue to resolve first
net cost to the tax payer - almost nothing
the states can continue to manage plans and benefits, but some federal intervention will be needed to keep things like hair transplants and fertility treatments for 60 year olds of of the mandated coverage list, so that costs stay in line
If you think this is crazy - and it can't be this simple
remember what happened when it really is a free market - like vision correction surgery, like cosmetic surgery, with no federal or state intervention
why is this not happening?
because we are all so stupid as to fight with each other, while the people we elected keep on passing bills that PROFIT THEM AND THEIRS
7-15-2009 @ 2:16AM
clikdawg said...
Don't worry -- there will be plenty of loopholes for dem rich folk tucked into dat bill, and the major costs will end up being borne by the middle class.
This is just Bam-Bam's campaign rhetoric transferred to the Congressional level to gain support for passage of the bill -- "Yeah, go fer it! The rich is gonna buy us all healthcare!"
But when the smoke clears, you and me'll be holdin' the bag.
How many times y'all gonna bite on the same slimy worm?
7-15-2009 @ 12:36PM
beanspants said...
John your plan looks pretty good to me, even if it means an increase in my taxes.