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Reid's Refusal Leaves $320B Health Care Hole

Dems may look to income tax hike to cover cost of public option

By Jason Farago, Newser Staff

Posted Jul 9, 2009 7:39 AM CDT

(Newser) – Harry Reid met with Republicans yesterday to diffuse some of his tough talk on health care reform, but as Politico reports, the Senate majority leader has forced a scramble for $320 billion over 10 years to pay for the plan. Reid said he would not support a bill that taxed federal health benefits, but the alternative may be just as unpopular: an income tax hike on Americans making $250,000 or more.

Reid's move to block taxes on health benefits is the largest headache yet for Max Baucus and the bipartisan group seeking to hammer out a compromise on health care. The Nevada senator insisted yesterday that he still wanted a bill with Republican support—a shift from earlier statements chiding Baucus for courting the GOP too much. Many senators are now anxious about the August deadline for the bill, but Reid's office says the Senate is sticking to it.

Senate Majority Leader Harry Reid of Nev. speaks in front of solar panels at Nellis Air Force Base in Las Vegas, Wednesday, May 27, 2009. (AP Photo/Isaac Brekken)

FILE - In this April 28, 2009 file photo, Senate Majority Leader Harry Reid gestures during a news conference on Capitol Hill in Washington. Reid will take the stage with President Barack Obama on Tuesday... (AP Photo/Jacquelyn Martin, FILE)

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Reid's Refusal Leaves $320B Health Care Hole

Dems may look to income tax hike to cover cost of public option

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Dummy Firms Squeeze Millions From Medicare

Fraud-fighters finding it hard to stay ahead of shell companies

White House Gives States More Say on Health Law

Proposal would let them determine 'essential benefits'

Gingrich Backed Individual Health Care Mandate

And other big government programs that benefited his clients: NYT

Health Reform Insured 2.5M Young People

Coverage up among 19- to 25-year-olds, now eligible for parents' insurance

On Way Out, Medicare Boss Bashes 'Extreme' Waste

Donald Berwick says 20-30% of health care spending helps no one

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Reid's Refusal Leaves $320B Health Care Hole

Dems may look to income tax hike to cover cost of public option

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OTHER STORIES ON OUR RADAR

health care • income tax • Harry Reid • Senate Democrats • health care reform • Max Baucus • bipartisanship

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Dummy Firms Squeeze Millions From Medicare

Fraud-fighters finding it hard to stay ahead of shell companies

White House Gives States More Say on Health Law

Proposal would let them determine 'essential benefits'

Gingrich Backed Individual Health Care Mandate

And other big government programs that benefited his clients: NYT

Health Reform Insured 2.5M Young People

Coverage up among 19- to 25-year-olds, now eligible for parents' insurance

On Way Out, Medicare Boss Bashes 'Extreme' Waste

Donald Berwick says 20-30% of health care spending helps no one

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Newser By Users

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