House Dems Looking At Taxing The Rich For Healthcare
WASHINGTON—House Democrats working on President Barack Obama's goal of health legislation are narrowing in on an income tax surcharge on the highest-paid wage earners to help subsidize insurance for the 50 million people who lack it.
As discussed in the tax-writing House Ways and Means Committee, the surtax would apply to individuals with adjusted gross income of more than $200,000 and couples over $250,000, according to officials involved in the discussion. Most spoke on condition of anonymity because the talks were private.
Rep. Shelley Berkley, D-Nev., a member of the panel, said the panel is looking at a surtax of around 3.5 percent on income above those amounts. Other members suggested it would be closer to 3 percent.
Pelosi made clear Thursday that whatever the Senate comes up with, the House bill will have a public plan and will not tax benefits.
"We will not be taxing benefits, health care benefits in any legislation that comes from the House," Pelosi said.
Hah! So they won't be taxing *benefits*, they'll just be taxing what pays for benefits, i.e. INCOME!
First of all, 3.5% is a staggering number. It may seem like a small percent, but if someone or some couple makes $300,000 annually, figure they're going to have an additional ten grand confiscated EVERY YEAR.
The cut-offs are curious too. $250,000 earning couples in *Blue states* will get hit the hardest. Their $9-$10,000 monthly budget will get hit to a tune of almost $900 per month from this new healthcare tax alone.
Now, bear in mind, that this will be happening at a time of rapidly increasing job insecurity, a time when *bonuses* are devastated everywhere (except at Goldman Sachs), a time when sales and energy taxes are getting jacked up, commuting taxes are rising, as are property taxes, and stock portfolios are on the brink. It's a heck of a time to be kicking working Americans, huh?
Note that individuals have to earn $200,000 before being hit with this tax. So, if you are say a doctor earning 150k and so is your sweetheart....why the bleep would you even (officially) get married?
Just have a party, move in together, play house, and save that extra 10k annually....since you're going to need it to pay for everything else!
Over the last several months I realized that simply earning *fiat currency* is neither an effective nor a sufficient plan for wealth building because paper money is far too easily confiscated and debased - especially on the down-slope of an economic cycle in a latently communist country.
One last point about those dual income families at the threshold of this tax. If you presume that 250k-300k earners buy homes in the $700,000-$1,000,000 range....
It follows that when erasing $900 from their monthly budgets....that these folk will only be able to afford homes $100,000-$150,000 cheaper. In other words, this tax ALONE will deliver another whack to the upper-middle part of the housing market - in tony Blue towns anyway.