House Ways and Means Chairman Charlie Rangel announced that a surtax on individuals and families above a certain income level would be used to pay for health care reform. The surtax is 1% for joint filers over $350,000, 1.5% for joint filers over $500,000 and 5.4% for joint filers with over $1,000,000 in adjusted gross income ($280,000, $400,000, $800,000 for individuals respectively). The surtax would be increased if large cuts in health care do not materialize. The surtax is on adjusted gross income, so the surtax is applied before any deductions and applies equally to all forms of income such as wages, dividends, capital gains, etc.
This surtax will have a large impact on small businesses:
- Sixty percent of all returns affected by the surtax have small business or partnership income.
- Twenty percent of the returns affected by the surtax get over half their income from small business or partnership income. These tax payers pay one quarter of all income taxes subject to the surtax.
- With the scheduled expiration of President Bush’s tax cuts, the federal top marginal rate on small business earnings will be 48% and exceed 50% in most states.
Chairman Rangel estimates that this plan will raise $540 billion over ten years, which is almost half of the needed revenues to pay for additional health care spending. Additional tax increases or spending reductions will need to be found to pay for new health care spending. Taxes will continue to rise to unsustainable levels if health care spending continues to rise.
These tax and spenders WOULD take the LAST dime from the LAST MAN or WOMAN who has the LAST JOB in this Nation.
I am retired and not in any of the tax bracktets stated here. But I do not believe I will not have to face additional costs, since the basic out of pocket expenses will increase before I receive any "free" or "covered care". Today with out of pocket expenses up to $2,000 and a medical bill after insurance was $5,000, I got nothing back on my taxes last year. So who are they kidding? This will hit all of us in various ways and to boot because I'm over 75, I bet I will be denied an operation if needed because of my age!
But I still pay taxes and I'm under $50,000 income.
is Rangel exempt from this? he couldn't figure out his own taxes! Rangel is a rich person!
Pingback: Democrats Health Care Bureaucracy Charted. Democrats propose massive new tax to drive wealth out of the country. « The IUSB Vision Weblog
Pingback: NY Fiscal Watch
Pingback: The Rangel Surtax « Conservative Thoughts and Profundity
Pingback: » Financial News Update - 07/15/09 NoisyRoom.net: Where liberty dwells, there is my country…
What I'm wondering is what would happen if doctors just refused to treat poeple in this public plan? Would they be penalized?
Nullification makes greater and greater sense in light of the Unconstitutional and disastrous acts the horrible 111th Congress and the president and dead set on enacting!
Pingback: Fix Health Care Policy | CBO: House Health Reform Costs $1.3 Trillion
Pingback: Pond’rings » “Universal” Health Care
when all is said and done. i'll bet congress will have a different healthcare plan then the rest of us tax payers.
Businesses ultimeatly pay no TAX! This is a tax on the consumer as the costs get pushed down to the products and services these business people sell. This proposal will crush the middle class as the cost of living dramatically rises through much higher prices.
It isn't how much you make, it is how much you keep.
Why not tax FORIEGN business interests that take our money and our jobs, instead of U.S. based businesses. This will eventually make U.S. products more attractive, along with the fact that these businesses can help keep us healthy. After all, the American consumer is still king. If we are healthy, then they stay wealthy.
Pingback: Sunday, July 19, 2009 — ExposeTheMedia.com
Where are they going to get their money when they put us out of business ?
If "Obamacare" bill passes then I guess all the small businesses will be adding to nation's already 10% unemployed. I just don't get it, it is just one lie after another. I've yet to hear Pelosi and/or Obama tell us how the illegals in this country will be covered. The democrates for some reason or other are not going to happy until they can get the federal tax rate up to about 90% and then the States and the locals government can fight for the rest. The handful of democrats seems like they are dead set on destroying the U.S.A. God help us
we have a consruction business–and we will shut it down before we will be taxed out of our personal income–so more jobs will be gone and on health reform– I had breast cancer and was in surgery in one week– my cousin in germany (social health care–which they now have to buy personal suplament insurance -because the goverment has run out of money!!surprise) he was dignosed with cancer in Oct and made it to surgery in April– what do you want?
Pingback: Rangel Surtax Debate Exposes “Class Warfare” Myth | Howard Rich
Pingback: Families and Small Businesses to be Taxed to Pay for Health Reform | Conservative Principals Now
Pingback: AntiObamaBlog.com » The Obama Broken Promise of a Middle-Class Tax Hike is Coming