The Tax Changes in the Senates Health Care Reform Bill
Similarly to the House’s bill the Senate’s act seeks to increase taxes to provide coverage to millions of Americans that are currently without health insurance.
The Basics of the Bill
According to estimates the PPACA is expected to cost $848 billion, and will include a public option that has an opt-out clause for individual states. There will be a federal mandate to purchase insurance, as well as fines for businesses that do not offer insurance. It is expected to provide coverage to over 30 million Americans, but will include a ban preventing illegal immigrants from taking advantage of the program.
Housing Credits for Veterans?
Technically, the PPACA has been presented as an amendment to a House of Representatives bill about housing credits for Veterans. This is a pretty controversial move, and a very strategic way to handle the issue. When debating and voting on a massive health care overhaul, Senators will also be forced to decide the fate of housing benefits for veterans – which is a very sensitive issue for many.
Fixing the Budget
It has been suggested that over the next 10 years, the PPACA will actually reduce the federal budget deficit by an estimated $130 billion. This is because the cost of the bill would be more than offset by tax increases, fees, and a reduction in the growth of Medicare. Additionally, the tax increases will take effect immediately, while the benefits will not begin until 2014.
The “Cadillac” Penalty
One of the ways the reform will be funded is through a new excise tax on high valued, “Cadillac†health insurance plans. If passed into law, a 40% tax would be levied on health coverage in excess of $8,500 for individuals $23,000 for families.
Half Percent Tax for High Earners
Unlike the House’s 1% tax increase, the PPACA will only increase taxes on high earning Americans by 1/2%. According to the bill, Medicare payroll taxes would be increased from 1.45% to 1.95% for individual taxpayers making over $200,000 or families making $250,000 per year.
Fines on Businesses
Any business employing more than 50 employees will be subject to serious fines if they do not provide insurance coverage. They will be forced to pay the Federal government $750 per year per employee that is not insured. However, since the taxes and fines are intended to take effect immediately many experts are worried that these fees will make the country’s unemployment problem even worse.
Watch the video related to health care reform bill
February 10, 2009 3:11 am 
By Mr., February 10, 2009 @ 3:49 am
By tj, February 10, 2009 @ 4:42 am
All that I know and have ever known that is consistent no matter what part of life you travel: NOTHING IS FREE…
There is always a catch, or a trap.
SO the question is" Are the American People smarter than the current Government Officials"?
I say yes the majority are quite smarter…
The Democrats thought they could pull a fast one…
Older Americans know that as long as the power was split between the party's nothing drastic would occur, that could not be undone…
However when the Democrats have One Party Rule Powers, all hell breaks lose and they take advantage of the American people…
Been there! done that! with the Democrats; pulling the same old tactics at the expense of everyone else.
They, the Democrats should have known they would not get by with the Progressive Agenda geared toward total domination of the American People….to many of us old farts still around to contend with and we have the scars and the t-shirts to prove it!
By Susiepolls2008, February 10, 2009 @ 5:52 am
EVERY DAMN ONE OF THEM…..ESPECIALLY #2…
IM CONSTANTLY ACCUSED OF BEING RACIST ( I AM ) JUST BECAUSE I OPPOSE HIS POLICIES. THE " N " WORD PERTAINING TO OBAMA IN MY OPINION IS "NAIVE"!!!!!!!!!
IF BLACK AMERICA, MOST OF WHOM HAD NEVER VOTED BEFORE IN THEIR LIVES, HAD WANTED TO ELECT A "BLACK"
MAN….THEY SHOULD HAVE WENT WITH COLIN POWELL, ALAN KEYES, OR SOME OTHER WORTHY CANDIDATE. NOT SOME "GREEN" SENATOR FROM THE CORRUPT BELLY OF CHICAGO POLITICS, WHO AT BEST WAS A COMMUNITY ORGANIZER.
BET YOU ITS GOING TO BE A LOOOONG TIME BEFORE ANOTHER "WORTHY" BLACK MAN GETS A SHOT!
By URL Shortener, February 10, 2009 @ 3:30 am
I guess that’d be almost as good as the military jailing everyone. We need someone to recover all the money these politicians have stolen from US ! doughboy
By Youtube Downloader, February 10, 2009 @ 4:51 am
Democrats currently control Congress, (the Senate and the House of Representatives), as well as the WH.
MANY voters are looking forward to voting a LOT of folks OUT in 2010 and also looking forward to voting in 2012!!!
By URL Shortener, February 11, 2009 @ 8:00 am
I don’t know why the republicans don’t call on the Military to take over Washington to protect Our Constitution and jail all those who are stealing Our Country right from under US ! Like obama, pelosi, frank, dodd, boxer, waters etc and all those who are riding on that bus. doughboy
By BS Detector, February 11, 2009 @ 12:00 pm
By Jay D, February 12, 2009 @ 1:16 pm
This type of spending can in no way help the economy. We are not in the financial shape to be on a spending spree like this.
By Anonymous, February 12, 2009 @ 2:07 pm
Thank you for this video!!!