TPMDC: Pelosi Wants Excise Tax Stripped From Senate Health Care Bill

[Omaha Steve]

http://tpmdc.talkingpointsmemo.com/2010/01/pelosi-wants-excise-tax-stripped-from-senate-bill.php?ref=mp

Brian Beutler | January 6, 2010, 9:44AM

After an afternoon meeting with House leaders and health care principals yesterday, Speaker Nancy Pelosi spoke in vague terms about what reform must accomplish: Affordability, accountability, and accessibility. "A triple 'A' rating," as she described it.

But aides say she's particularly steamed that the White House wants her to largely adopt the Senate bill in its entirety. And she's particularly unhappy that the White House has thrown its weight behind the Senate bill's chief funding mechanism: an excise tax on so-called "Cadillac" insurance policies, which she and many in her caucus have long believed violates President Obama's pledge not to raise taxes on the middle class. According to one aide, that--not the public option--was likely the reason she ribbed Obama at her press conference yesterday, quipping, "there were a number of things he was for on the campaign trail."

The House proposes paying for its bill by imposing a surtax on high-income Americans. And though there's been speculation for months that the final reform package will include a combination of both sources of revenue, Pelosi, who's already had to accept the demise of the public option, wants the excise tax gone.

That will be a tough sell with the White House, which has endorsed the Senate's measures. But other issues are coming into focus as House priorities as well. The House bill organizes insurance exchanges at the national level, while the Senate bill requires states to erect their own. Pelosi's proposal would also make mandatory insurance more affordable for individuals below 300 percent of the poverty line, require insurance companies to cover a greater percentage of health care costs, and would implement most major benefits a year earlier than would the Senate bill.

FULL story at link.

[doc03]

1. "It will be a tough sell with the Whitehouse." This is beyond belief

that was John McCains idea and Obama opposed it now it's a tough sell for the Whitehouse! Who the hell does he think elected him anyway!

[laughingliberal]

5. No kidding! I have people here snarking at me whether I would have preferred McCain's plan

Well, in this regard, we got McCain's plan. Hillary was for mandates. McCain was for taxing benefits. Obama was for a public option to compete with insurance companies in the exchange. Obama was elected. Now he favors mandates, a tax on benefits, and no public option. Unbelievable!

[napi21]

2. How many, if any, middle class would be affected by this sur tax?

I'm retired now, but I was responsible for the ins. programs at the co. I worked for. We provided good coverage for our employees. $10 Dr. copays, $20 Specialists, max out of pocket per year $2,000, $5 generic meds, $15, $25, & 35 for teir 1, 2, & 3 drugs. NOBODY in the co. including the CEO was covered by a policy that cost more than $10,000/yr and we had around 250 employees.

I honestly question how many people in the middle class will be affected by this sur tax and if we are screaming and fighting about something that really doesn't matter?

[laughingliberal]

4. Regardless, it does go against, "If you make less than $250,000 per year you won't see your taxes go

up one dime." This is a 'read my lips' moment if Obama keeps pushing for it. There are middle class workers who will be subject to it now and more every year as premium costs continue to rise. People with good benefit plans, which they likely negotiated in lieu of higher pay or better raises. are being painted as the new 'welfare queens.' Levying this tax on people based solely on the price of the premium is just punishing people who are, likely, being overcharged for their health insurance.

[kelly1mm]

6. He raised taxes on smokers that made under $250k already without

much outrage and with much applause here on DU. While this bill will not get as much support as the SCHIP tax the principle is the same.

For those who will counter that the SCHIP tax was a tax on all buyers of tobacco and thus not based on income, this proposal is likewise based on the use of a product (health insurance) and is not based on income.

Should have seen the writing on the wall then but 'that was just those dirty smokers - serves them right'. Principles mean things.

[laughingliberal]

8. It's been acceptable to demonize smokers for a while, now

If it becomes acceptable here to demonize working and middle class Americans how will we call ourselves "Democratic" with a straight face?

I think more people are seeing th writing on the wall but not nearly enough yet.

[napi21]

7. I still am not sure about that. Trust me, our CEO made a lot more than $250,000, and the cost of

his ins. was not any higher than the others in the Co. I don't know what the final bill would have as a $$ figure for what is considered A CADILLAC PLAN, and I still have seen no proof that anyone in the middle class would see a tax increase.

If you're right, I agree with you, but I don't believe in fighting fights when I don't know what the parameters are.

[laughingliberal]

9. The amounts are:

An individual plan costing $8500 per year or more or a family plan costing $23,000 per year. Before you think that is not going to affect many in the working class you may want to consider that covering my husband 4 years ago was costing us $700 per month for a pretty standard major medical plan through my employer. In fact, I know very few individuals over 50 who are getting plans for much under $8500 per year and, as premiums continue to rise, it will hit more and more middle class Americans and those working for smaller companies.

[laughingliberal]

3. Sounds like she's been reading my posts. Lol!

We should all write the White House about it as it has been obvious for a while that they are pushing the middle class excise tax. I consider it a direct violation of the campaign promise not to raise taxes on those making less than $250,000. I fought with Republican acquaintances cause they believed Obama would raise their taxes. I defended him saying he, absolutely, would not raise middle class taxes. What do I say, now? He fooled me?