Dems Propose 5.4% Tax on Top Earners for Health Care

Legislation proposes paying for coverage with a new tax on the wealthy

By Nick McMaster,  Newser Staff

Posted Jul 14, 2009 5:30 PM CDT

(Newser) – And they're off: House Democrats unveiled their bill to reform the US health care system today, the Hill reports. The bill includes a government-run insurance option to cover more than 30 million uninsured Americans and would impose new taxes on the wealthy to pay for it all, notes Politico. The CBO estimates the legislation would cost $1 trillion.

The bill would impose a 1% surtax on Americans making more than $350,000 a year, 1.5% on those making between $500,000 and $1 million, and 5.4% on those with incomes above $1 million. The tax increases could be repealed if savings make the revenue unnecessary, notes the Wall Street Journal. The bill will now undergo a series of committee mark-ups, while two Senate panels continue work on their versions.

House Speaker Nancy Pelosi, D-Calif., is joined by other House Democratic leaders, announcing the introduction of health care legislation on Capitol Hill, Tuesday, July 14, 2009, in Washington.
House Speaker Nancy Pelosi, D-Calif., is joined by other House Democratic leaders, announcing the introduction of health care legislation on Capitol Hill, Tuesday, July 14, 2009, in Washington.   (AP Photo/Manuel Balce Ceneta)
House Speaker Nancy Pelosi, D-Calif., is joined by other House Democratic leaders, announcing the introduction of health care legislation on Capitol Hill, Tuesday, July 14, 2009, in Washington.
House Speaker Nancy Pelosi, D-Calif., is joined by other House Democratic leaders, announcing the introduction of health care legislation on Capitol Hill, Tuesday, July 14, 2009, in Washington.   (AP Photo/Manuel Balce Ceneta)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.

NEWS FROM OUR PARTNERS
Other Sites We Like:   The Street   |   24/7 Wall St.   |   BuzzFeed   |   Cracked   |   World History Project   |   POPSUGAR Tech   |   Business Insider   |   HuffPost Entertainment