WASHINGTON (CNN) - Democrats on the House Ways and Means Committee Friday proposed a graduated tax on wealthy Americans to pay for health care reform, to several Democratic sources tell CNN.
The new tax would kick in for individuals who make over between $280,000 to $400,000 per year and for married couples who make from $350,000 to 500,000 per year, imposing a 1 percent tax on their adjusted gross income.
The tax rate would increase to a higher percentage for individuals making between $400,000 to 800,000 and for couples making $500,000 to $1 million per year.
Individuals making $800,000 or above and couples making $1 million or more per year would be taxed at an even higher rate.
The rates for the tax on the two higher brackets are still being finalized, according to the sources. Committee Democrats jettisoned other ideas to pay for the bill, including new taxes on sugary drinks or an increase in Medicare payroll taxes.
Sources say the new tax is expected to bring in $540 billion over ten years. This new revenue, combined with approximately $500 billion in projected savings from health care reforms, would offset the roughly $1 trillion that the House Democrats' health care bill is expected to cost, they said. The Congressional Budget Office has not released its cost estimate yet on the House bill.
House Democratic leaders are planning to introduce their legislation on Monday. The committees focused on health care in the House are expected to being consideration on the bill later next week.
It is very important to have an affordable health insurance program including a public option.The present system isn't working. The insurance companies/drug companies are reaping people off. The congress should find a better way of funding instead of primarily taxing the rich. The other alternative is to cut spending in other areas to fund healthcare. The republicans should stop playing constituency (pro business) politics and offer realistic suggestions instead of just saying NO.
Democrats make me sick.
They punish success and create class warfare.
I feel like I am losing America.
Hope they tax the insurance execs 5% more tax for fleecing the public.
How about we tax the people sucking the money out of the government? You know kind of a "PAYGO" for welfare. You want government entitlements like government health care you pay more in taxes for it. Why tax people who will not be using government health care?
nope...just Obama's America. I don't even make 1 5th that amount and I know it's wrong
This is sick!! The Dems think they have found the way to give their constituents everything they want. "Tax the other guy and use the money for what I want." In spite of what the Dems will most likely say, this is not good. Wait until someone gets in charge who decides to tax you for their constituents. There is no stopping this stupidity.
This is making no sense to me. Health reform should not be COSTING the country anything unless Barack Obama is planning on handing over money directly to insurance companies. One of the reasons for major health reform is that it should be able to SAVE the country–and each of us–money. We should move from sepnding paying $0.31 of every $1.00 on overhead (ie, insurance companies,billers, etc) to the 3 cents of every Medicare healthcare dollar that Medicare spends on its overhead. Where are these numbers coming from?
Yep, keep milking the "rich", just like Jimma "Robbing Hood" Cahtah. It was a disaster then, it will be worse today. Obama painted himslef innto a tight corner ("I won't tax those making less than $250k", and then he goes out and spends tha most money in the history of man! Somebody has to pay fopr all of this, and that only leaves the "rich" – to get saoked to the bone.).
Cahatah barely made it through ONE term; Obama will be lucky to get that far!!
its about time
It's good to be poor in America. No wonder millions of illegal immigrants wants to go there since the Democrats promised way to citizenship. All for the VOTES Yankees! Youngsters are voting for OBAMA because they don't need to work... They'll just benefit from hard earned billionaires like Buffet or Gates. Wow! They also acquire free cars out of new GM or Government Motors. All hail OBAMA!
He will CHANGE his mind and tax everyone and
Must be a rather ball-less tax. Bush's tax cuts for the rich increased our deficit by almost that much PER YEAR. So the rich are still waaay ahead!