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Congress at Odds on How to Pay for Health Reform
With the cost of health reform estimated to be as much as $1.6 trillion over the next 10 years, the issue of how to pay for it is not surprisingly a sticking point among lawmakers. Although some House leaders had been considering a tax on employer-provided health benefits, that idea appears to have been abandoned in favor of an income tax surcharge of at least 2 percent on individuals who earn more than $250,000 a year. Other ideas that have been considered include a sales tax on sodas and other sugary drinks and a new payroll tax. Meanwhile the Senate seems to leaning towards a plan that would limit tax deductions and tax employer-provided health plans worth $25,000 or more a year. Both the House and Senate are expected to introduce bills on health reform and health reform financing next week. Contact: Elizabeth McNeil, 415/882-3376 or emcneil@cmanet.org.
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