To Pay for Health Care, Obama Looks to Taxes on Affluent

[Emit]

I cringe when they couch these proposals in terms of "redistributing wealth."

Published: February 25, 2009
WASHINGTON — President Obama will propose further tax increases on the affluent to help pay for his promise to make health care more accessible and affordable, calling for stricter limits on the benefits of itemized deductions taken by the wealthiest households, administration officials said Wednesday.

The tax proposal, coming after recent years in which wealth has become more concentrated at the top of the income scale, introduces a politically volatile edge to the Congressional debate over Mr. Obama’s domestic priorities.

The president will also propose, in the 10-year budget he is to release Thursday, to use revenues from the centerpiece of his environmental policy — a plan under which companies must buy permits to exceed pollution emission caps — to pay for an extension of a two-year tax credit that benefits low-wage and middle-income people.

The combined effect of the two revenue-raising proposals, on top of Mr. Obama’s existing plan to roll back the Bush-era income tax reductions on households with income exceeding $250,000 a year, would be a pronounced move to redistribute wealth by reimposing a larger share of the tax burden on corporations and the most affluent taxpayers.

~snip~

Under existing law, the tax benefit of itemizing deductions rises with a taxpayer’s marginal tax bracket (the bracket that applies to the last dollar of income). For example, $10,000 in itemized deductions reduces tax liability by $3,500 for someone in the 35 percent bracket.

Mr. Obama would allow a saving of only $2,800 — as if the person were in the 28 percent bracket.

The White House says it is unfair for high-income people to get a bigger tax break than middle-income people for claiming the same deductions or making the same charitable contributions.

The officials said the resulting increase in revenues, estimated at $318 billion over 10 years, would account for about half of a $634 billion “reserve fund” that Mr. Obama will set aside in his budget to address changes in the health care system. The other half would come from proposed cost savings in Medicare, Medicaid and other health programs.

http://www.nytimes.com/2009/02/26/us/politics/26budget.html?th&emc=th

[Jennicut]

1. The weatlhy got away with not paying their fair share for years

I know the complaints will start to come by the Repukes but its about time the tax system was more fair and how else do we pay for health care reform?

[uponit7771]

2. It's been easy for them to do this because of lack of message discipline by the DNC. This morning 3

...GOP senators were able to go on CNBC and lie about the budget untouched.

[Jennicut]

3. Its not undiscipline....the media does not want Dems on their programs

in the same amount as Repugs. We are manipulated every day.