Tuesday, June 16, 2009

Taxing health benefits and cutting benefits for the poor and the elderly

"The White House is caught in a battle within its own party over how to finance a comprehensive overhaul of America's health-care system, as key Democrats advocate a tax plan that could require President Obama to break his campaign pledge not to raise taxes on the middle class . . . Obama and congressional leaders have vowed to pay for a sweeping expansion of the health-care system -- expected to cost more than $1 trillion over the next decade -- without additional borrowing. Much of the money is likely to come from reining in spending on federal health programs for the elderly and the poor. Obama has proposed trimming more than $600 billion from Medicare and Medicaid by 2019 . . . The rest of the cash will probably come from new taxes. . . . Obama has revived a tax plan he first offered in February: limiting itemized deductions for the nation's 3 million highest earners. . . . But many Democrats, particularly in the Senate, have balked at the idea, saying they prefer a tax . . . on the health benefits that millions of Americans currently receive tax-free through employers."


If you're poor or elderly, your health care benefits will be cut. If you get health insurance at work, your taxes will go up at least $200 per month.

Remember when Obama promised health care reform would be revenue neutral and would not require new taxes?

Prediction: If millions of middle class, union and civil service workers start paying payroll taxes on their hard fought for employer provided health insurance in January, 2010, the Democrats lose control of the House of Representatives in November, 2010.

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