New report refutes claims that health care excise tax would not hurt middle class

[IndianaGreen]

New report refutes claims that health care excise tax would not hurt middle class

A new report shows just how bad an excise tax on health care benefits would be for the middle class.

The report was released today in response to new claims that the proposed excise tax does not raise taxes on middle class families. The Communications Workers of America's analysis of new data compiled by the Joint Committee on Taxation (JCT) debunks this argument.

The analysis shows that the so-called “Cadillac tax” in the Senate version of the health care bill would have a disastrous impact on middle-class Americans. The report, which refutes key arguments made by proponents of the tax, details how the effect of the tax on Americans is more widespread and deleterious than its proponents claim. Click here for more on the analysis.

http://www.usw.org/media_center/news_articles?id=0470

[dkf]

1. I heard that there will be a significant number of plans

That will be affected by this over time. This is the senates idea of a cost cutting measure but when it becomes the norm it will feel like a typical and ordinary tax. It will then lose any power as a cost.deterrent.

[IndianaGreen]

2. 24.6 million will get hit by the tax by 2019

In this report “households” refers to individuals and families paying taxes. Based on JCT data showing that 24.6 million “tax units” would be affected by the excise tax in 2019, Citizens for Tax Justice estimates that 12.6 million are married couples, 3 million are single parents and 9.1 million are childless single people for a total of 58 million men, women and children affected.

http://www.healthcarevoices.org/pages/impact-of-the-excise-tax-on-the-middle-class

http://www.ctj.org/pdf/healthexcisetax20091211.pdf

That's a lot of angry voters!

[havocmom]

3. Deficits don't matter when the very rich get big tax cuts and we go to war besides

but talk about something for the worker bees, and suddenly things have to be paid for, and by the very group who used to be able to keep the economy going.

The less the middle class and working class have to spend, the more the economy sinks. Trickle down doesn't work and you don't get a war on while giving the top layer more tax cuts!

Damn it all to hell. This taking us back to a feudal state is appalling.

[Phoebe Loosinhouse]

7. Ditto. nt

[dkf]

4. Not having coverage and waiting for a medical condition is beginning to

Make more and more sense.

[Better Today]

5. This is the sticking point for me, not so much the public option, which is important

but not entirely a deal breaker for me. This however is. If they simply change the financing tool to the House's plan to tax higher incomes, I would feel a ton better about this bill. Whether mandates, and delays, and nopublic option end up being right or wrong, work or not, the main thing is he wasn't supposed to put it on the backs of the middle class. That is to me the most important part.

[Walk away]

6. Why can't they tax the top 10%. Wasn't that the promise? Isn't that what...

the President ran on? Why are we virtually taxing the middle class?

[Armstead]

8. A union analysis? Don't you realize unions are on the shit list?

Unions are bad. Democrats don't need union support.

Get with the program.


:sarcasm:

[Vidar]

9. K&R.

[David Zephyr]

10. K&R.

Working class Americans with healthcare are going to explode as they learn about how they are going to be the fall guy in the insurance monopoly's sweet heart deal. And they will take it out on the Democrats in November.

If Obama doesn't realize this, then he's inept.

If he does realize it, then he must also know that the struggling middle class and working class who have healthcare are going to explode with anger against the Dems in November when they learn they are being taxed.

My health care policy exceeds the $8,500 threshold so that makes it a "cadillac" plan. But it is that high, not because of the plan, but because of my age. My co-workers have the same plan, but are younger and pay less. I know because I own the company and I pay all of their premiums.

This tax will fry the asses of working Americans.

[grantcart]

11. Interesting to note that the authors of the report are not against the health reform act only

one part of the Senate plan.

Their recommended cure is found at the bottom of the original article.

http://www.ctj.org/pdf/healthexcisetax20091211.pdf

There are progressive options to pay for health insurance reform

Taxing a portion of employer-paid health insurance, in a way that will lead to reduced health
coverage for tens of millions of Americans, is not the only proposed way to pay for health
insurance reform.

1)The House of Representatives has passed a health insurance reform bill that is primarily
financed by a surcharge on couples making more than $1,000,000 and singles making more
than $500,000. Only the best-off 0.5 percent of all taxpayers would be subject to the House’s
proposed tax, yet it would raise $460 billion over 10 years, more than three times as much as
the $149 billion the Senate Democrats’ proposed excise tax would raise.

2) Alternatively, extending half of the 2.9 percent Medicare tax to investment income (which is
currently exempt from the Medicare tax), while limiting this change to couples making more
than $250,000 a year ($200,000 for singles), would affect only 2 percent of all taxpayers. Yet
according to the Joint Committee on Taxation, it would raise $111 billion over 10 years,
enough to replace three-quarters of the revenues from the Senate Democrats’ proposed excise
tax on health insurance benefits.

[27inCali]

12. I'm with you

we need pressure to get this dumped in conference, shift more of the tax burden to the rich.

[denem]

13. 2016! 'Affect 19% of workers with employer-sponsored health coverage in 2016'.

That's eon away in the political game, with (necessary) assumptions about what will happen to 'Cadillac coverage'. On the other hand, 81% would not be worse of on their calculations.

BTW: No one would argue that socialized medicine, the Bristish NHS is anything like a Cadillac. Employer-sponsored health coverage is the problem, not the solution.