Get Ready For Higher Taxes

This healthcare overhaul is shaping up to be an unmitigated disaster. All taxes are going to have to raised to pay for it, the quality of care will decline, employers will have to let go more workers and old people will not be able to get medical procedures because it's not "cost effective". Hopefully Congress will wake up spare the greatest healthcare system in the world.-Lou

House eyes new taxes as senators pare health bill

WASHINGTON (AP) - Early work on the ambitious health care overhaul the Obama administration is seeking has exposed the kinds of in-house fights that typify just how hard it will be to get meaningful legislation this year. Case in point: A proposal to help bankroll universal health coverage with a dime-a-can increase in the price of soft drinks.

House Democrats have lots of potential targets for higher taxes as they aim to expand health care coverage to reach the roughly 50 million that experts say are uninsured.

Also under consideration are higher alcohol taxes, increases to the Medicare payroll tax and a value-added tax, a sort of national sales tax, of up to 1.5 percent or more.

The list of options being weighed by the tax-writing House Ways and Means Committee, and obtained Thursday by The Associated Press, aims to raise some $600 billion over 10 years to partially pay for President Barack Obama's goal of overhauling the nation's health care system to tame costs and cover the 50 million uninsured.

The final price tag for that effort could top $1 trillion, with cuts to Medicare and Medicaid covering the rest of the cost.

The tax options include:
- Increasing the price of soda and other sugary drinks by 10 cents a can.
- Applying a potential 2 percent income tax increase to single taxpayers earning more than $200,000 a year and households earning more than $250,000.
- A new employer payroll tax could target 3 percent of employers' health care expenditures.
- Taxing employer-provided health insurance benefits above certain levels - a less likely option but one that still is in the running.

House Democrats planned to unveil a draft of their sweeping health care bill Friday. It would require all individuals to obtain health insurance and force employers to offer health care to their workers, with exemptions for small businesses. A new public health insurance plan, strongly opposed by Republicans, would compete with private companies within a new health care purchasing "exchange" where Americans could shop for coverage. Government subsidies would help the poor buy care.

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