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Reid Considering a New Tax Plan for His Bill

November 12, 2009 - by Donny Shaw

Senate Majority Leader Harry Reid (D-NV) has started the necessary procedural moves to bring health care reform to the Senate floor early next week. Reports out today indicate that he’s currently making some major, last-minute tweaks to his bill’s funding mechanisms.

The AP reports:

Majority Leader Harry Reid is considering a plan for higher payroll taxes on the upper-income earners to help finance health care legislation he intends to introduce in the Senate in the next several days, numerous Democratic officials said Wednesday.

These officials said one of the options Reid has had under review would raise the payroll tax that goes to Medicare, but only on income above $250,000 a year. Current law sets the tax at 1.45 percent of income, an amount matched by employers.

It was not known how large an increase Reid, D-Nev., was considering, or whether it would also apply to a company’s portion of the tax.

Bloomberg says that it may also apply to capital gains for people earning above the $250,000 threshold. All in all, it sounds a lot like the main funding mechanism in the House bill that was passed on Saturday (H.R. 3962). The differing funding mechanisms in the House bill and the Senate Finance Committee bill represent one of the biggest unresolved gaps between the leading health care bills in Congress.

The big question is why Reid is making the change. Will it be in addition to the “Cadillac” health plans tax in order to make up for other reductions or to increase spending in other areas, like affordability credits? Or will it basically swap out the “Cadillac” tax in order to shore up support from unions who oppose it? Reid’s bill is currently being reviewed by the Congressional Budget Office and will be made public sometime in the next couple of days.

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Comments

  • dabswim1958 11/12/2009 1:14pm
    Link Reply
    + -1

    KEEP THIS UP AND YOU WILL BE OUT A JOB!! YOU AND THE REST OF YOUR DEMOCRAT FRIENDS.

  • tripmom92 11/12/2009 3:11pm
    Link Reply
    + -1

    Just remember, Reid, you work for “WE THE PEOPLE” not this
    adminstration. Do not get to comfortable in your office…
    You’ll be leaving it really soon. I have never seen such
    deceitfulness and underhandedness in a Congress that is going on both on sides of the aisle that I have had the displeasure to witness for the past several months. You people are unbelievable.

  • tony464us2011 11/13/2009 5:34am

    FINALLY SOME CHANGE!! THESE REPUBLICANs ARE BACK STABBERS! DONT GET ME STARTED ON THE ANGRY WHITE POWER MOB CALLED THE TEA PARTY.

  • FallenMorgan 11/13/2009 8:25am

    The right is all up in arms about the public option, but nobody seems to have a problem with the government forcing you to buy health insurance.

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