US government plans tax on wealthy Americans to foot health-care costs
15 Jul 2009
House Democrats unveiled plans for the most comprehensive US health-care expansion in four decades that will require the wealthiest Americans shoulder the bulk of the financial burden for health care reforms. The plan seeks to raise $544 billion over 10 years by increasing taxes on the wealthiest Americans and imposing a surtax of 5.4 per cent on couples with income in excess of $1 million.
The legislation proposed on Monday would impose additional taxes on households with more than $350,000 a year in income and calls for further increases if the measure does not net the targeted savings.
House leaders said the plan includes mandates to purchase coverage and a public health-insurance option covering 97 per cent Americans by 2019. The legislators' work was praised by president Barack Obama who said the government would begin the process of fixing what was broken in the system.
Healthcare reform has been a top priority with the Obama administration and a major plank of the Democratic party in last year's elections. The president called on both chambers to vote on their versions of the legislation ahead of the August recess.
The 1,018-page House Democrat plan builds on a draft presented on 19 June and for the first time spells out how the plan would be funded. In addition to the levy on millionaire households, the House would also levy surtax of 1.5 per cent on couples with incomes of $500,000 to $1 million and 1 per cent on those with incomes exceeding $350,000.
The estimated savings from the health-care overhaul would be subjected to a review by the White House budget office and in case the savings are $150 billion more than expected, a planned second set of increases for those with income between $350,000 and $1 million would be scrapped. If the savings cross $175 billion, the surcharge for those incomes would be fully withdrawn.
