Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Dems on Collision Course on How to Pay for Heath Care

By Jason Farago,  Newser Staff

Posted Jul 10, 2009 5:47 AM CDT
Email

(Newser) – Democrats in Congress are heading for an intra-party showdown over how to fund health care reform, reports the New York Times. The powerful House Ways and Means Committee is reportedly near agreement on an income tax surcharge of 2% or more on Americans earning above $250,000, which moderate Democrats in the Senate called unworkable. The committee ruled out sin taxes on sugary drinks and a new payroll tax.

The White House has not expressed any opposition to the proposed income tax surcharge, which would not violate Barack Obama's campaign pledge not to hike taxes on the middle class. But Charles Grassley, the leading Republican in the bipartisan Senate group negotiating the bill, said a surtax was "non-negotiable," and the group is now exploring a proposal to tax only the most generous employer-provided health plans—those worth $25,000 or more a year.

Sen. Charles Schumer, D-N.Y. address a health care reform rally near Capitol Hill in Washington, Thursday, June 25, 2009.
Sen. Charles Schumer, D-N.Y. address a health care reform rally near Capitol Hill in Washington, Thursday, June 25, 2009.   (AP Photo/Jacquelyn Martin)
Sen. Max Baucus, D-Mont., and Sen. Charles Grassley, R-Iowa, talk with reporters after a closed-door committee meeting on financing an overhaul of the health care system.
Sen. Max Baucus, D-Mont., and Sen. Charles Grassley, R-Iowa, talk with reporters after a closed-door committee meeting on financing an overhaul of the health care system.   (AP Photo/Manuel Balce Ceneta)
House Speaker Nancy Pelosi, D-Calif., speaks with reporters during her weekly news conference on Capitol Hill in Washington.
House Speaker Nancy Pelosi, D-Calif., speaks with reporters during her weekly news conference on Capitol Hill in Washington.   (AP Photo/Gerald Herbert)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 3 of 8 comments
Fondue
Jul 10, 2009 12:25 PM CDT
He already promised those making more than $250k would see an increase. Do you make that much? If so, you've known all along that your taxes were in fact going up. Do you make less than that? If so, STFU already - your taxes are not going up.
Reader65069154
Jul 10, 2009 12:20 PM CDT
But BHO promised my taxes wouldn't go up
Timinator2K
Jul 10, 2009 12:19 PM CDT
MUCH MUCH HIGHER TAXES, YIPPEE! ITS THE LIBERAL DEMOCRAT WAY.
Politics • Health • US

 
income tax • Senate Democrats • Charles Grassley • surcharge • health care reform • Max Baucus • House Democrats • federal income tax • Blue Dog Democrats

More Newser Stories

Obama Signs Health Reform Law (Yes, Again)

GOP: Obama Must Sign Health Measure Before Reconciliation

Obama Will OK Use of Reconciliation on Health Bill

Health Reform: It's 1994 All Over Again

Health Reform Could Proceed on Two Tracks
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne