WASHINGTON (CNN) – Speaker Nancy Pelosi said Thursday she would willing to lower the amount of a new surtax on wealthy Americans to pay for health care legislation if more savings from proposed reforms can cover the cost of the bill.
"If we can get more savings, we can perhaps lower the percentage that the high end will pay," Pelosi said at her weekly press conference.
But the Speaker made it clear that Democrats still plan to tax the rich, and said if the money isn't needed to pay for health care it would be directed at the nation's budget deficit. "There is going to be a revenue change at the high end. It will be directly to reduce the deficit or to reduce the deficit by helping to cover the cost of this initiative."
Earlier this week, House Democrats proposed a graduated surtax on wealthy Americans to pay for their roughly $1 trillion health care bill. The new tax is expected to raise $550 billion over ten years. The proposal would add a 1 percent surtax on adjusted gross income for families who make over $350,000 a year. It would increase to 1.5 percent for those families making $500,000 a year, and jump again to 5.4 percent for those making over $1 million a year.
Pelosi said she is also open to making more cost cutting changes to the bill to satisfy a group of conservative Democrats known as "Blue Dogs."
Arkansas Democrat Mike Ross, said he and other Blue Dogs are still discussing the specific changes they will propose to the bill. He said the group is not negotiating any changes to the proposed surtax. But Ross said he didn't favor it. "I don't like the idea of raising taxes in the worst economic recession since World War II, " Ross said.