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
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)
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(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 The tax increases could be repealed if savings make the revenue unnecessary, notes the Wall Street Journal.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.
(Read more universal health care stories.)