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  • The Senate Health Bill: Higher Taxes from Harry Reid

    In order to pay for a massive health care bill (H.R. 3590), Majority Leader Harry Reid (D-NV) creates a host of new taxes. These taxes will total $370.2 billion in the next ten years, and many of the taxes will start being collected in 2010, even as the economy continues to struggle.

    The most shocking tax increase is a payroll tax increase that will permanently sever the link between the Medicare Payroll tax and its contributions to Medicare. This payroll tax increase of .5% on earnings above $200,000 for singles and $250,000 for joint couples will contribute money to the general fund for health care instead of directly for Medicare payments.

    This change means that Medicare taxes are no longer solely dedicated to social insurance and safeguarding Medicare. Instead, Medicare payroll taxes will be used for other government programs. It is ironic, that the shift emerges from the liberals as they have long been worried about turning social insurance programs into welfare programs that redistribute wealth. The Reid payroll tax is a huge step down the road of using social insurance payroll taxes as regular taxes to transfer income.

    Senator Reid also keeps the excise tax on high value of insurance companies. This tax is expected to be $150 billion and is very similar to the similar tax in the Senate Finance Committee, but at a higher threshold level.

    Senator Reid also imposes a host of new taxes on the health insurance industry. These range from taxes on branded drug companies to the makers of medical devices. The effect of these new taxes will be to increase medical costs and premiums for individuals. These taxes do nothing but raise the cost of health care as the companies will pass on these tax increases to the consumers of health care.

    Reid Taxes as calculated by the Joint Tax Committee:

    1. 40% Excise tax on High Value plans such as $8,500 for Individual and $23,000 for a couple. $149.1 billion in new taxes over the next ten years.
    2. 0.5% Hike in Medicare Payroll Tax Hike, for single earners over $200,000 and joint earners over $250,000. $53.8 billion in new taxes over the next ten years.
    3. Changes to Health Savings Accounts, Archer Medical Spending Accounts and Health Flexible Spending Accounts and Health Reimbursement Arrangements, $5 billion in new taxes.
    4. Cap Flexible Spending Accounts at $2500 in cafeteria plans from the current status of unlimited FSA, $14.6 billion.
    5. Increase Penalty for early non-qualified Health Savings Accounts Withdrawals from 10 to 20 Percent, $1.3 Billion.
    6. Tax on Branded Drugs: manufacturers and importers of branded drugs that will cost taxpayers $22.2 billion.
    7. Annual tax on the health insurers. $60.4 billion in new taxes over ten years.
    8. Tax on companies who manufacture or import medical devices that will generate $19.3 billion in new taxes over the next ten years.
    9. 0. 5% excise tax on cosmetic surgery. This is basically a new 5% federal sales tax on cosmetic surgeries and procedures. $5.8 Billion in new taxes over ten years.
    10. Increase the floor of the Medical Expenses Deduction from 7.5% of Adjusted Gross Income to 10%. The floor for seniors will be maintained at 7.5%. This means that the cost of being sick has increased, and sick taxpayers will pay $15.2 billion in new taxes in the next ten years.
    11. Eliminate the Deduction of Medicare Part D(prescription Drug Plan) generates $5.4 billion in new taxes over the next ten years.
    12. Cap salaries for all employees of health insurance companies at $500,000 by making any remuneration all of that not deductible for tax purposes. $.6 billion over ten years.
    13. Established mandates on employers of companies with more than fifty employees to provide health coverage or pay a fee, and requires individuals to maintain qualified health coverage or pay a fee. Companies would pay a penalty of $750 per employee if any employee obtained coverage through the insurance exchange. Full-time workers would have to accept company coverage unless company coverage would cost more than 9.8 percent when they could be on the government exchange, but companies would still face the $750 penalty yielding $36 billion over ten years.
    Posted in Obamacare [slideshow_deploy]

    19 Responses to The Senate Health Bill: Higher Taxes from Harry Reid

    1. Rick, Norfolk, Va says:

      It is naive to think that government run health care will provide better care for all at less cost. Anyone who has ever been involved in government can see this for the rhetoric that it is. We should be far more focused on our nation's productivity and economic welfare and adding additional tax burden on the heart and soul of what remains of our economy is not the answer.

    2. Rick Texas says:

      All these extra taxes and contributions by taxpayers, just to insure to additional 12 million or so? This is ridiculous, if not socialist. I cannot believe the radical extremes this administration has exhibited over the last 10 or so months – the least of which is lying to eveybody, including the ones who voted for Obama.

      And I don't believe anything that comes out of the mouth of Obama, Pelosi or Reid (throw in Dodd, Holdren, and the rest) – an admistration like this one has NEVER been in this country, and I hope our great country will never see the likes of these renegades again. This group has absolutely no respect for the Founding Fathers or the Constitution – in fact, they have a great disdain for freedom.

    3. CLIFF FREEMAN says:

      I DON'T UNDERSTAND WHY NO ONE(CONSERVATIVES) ARE CHALLENGING THE HEALTH CARE BILL ON CONSTITUTIONAL GROUNDS. THE CONSTITUTION DOES NOT GIVE OUR GOVERNMENT THE RIGHT TO FORCE THIS ON THE CITIZENS, AND A CONSTITUTIONAL CHALLANGE COULD DELAY RATIFICATION BY CONGRESS, AND FORCE MORE OPEN AND TRUTHFUL DISCLOSURE AND GIVE OUR CITIZENS ADDITIONAL TIME TO OBJECT TO THEIR APPROPRIATE REPRESENTITIVES. I FEEL AS A CITIZEN THAT THE CURRENT ADMINSTRATION HAS AND IS CONTINUING TO IGNORE THE CONSTITUTION ON SEVERAL ISSUES, SUCH AS THE APPOINTMENT OF CZARS, AND THE REGULATION OF COMPENSATION FOR PRIVATE SECTOR EMPLOYEES.

    4. Jim Peeke says:

      11-19-09

      Fox News

      Discuss if you will the amount of ear mark costs given to get the votes from the house & senate to pass the health care package.

      The cost of health care is not just the medical cost, it is also the cost of those ear marks.

      Send me your report by e-mail. I probably won’t hear it.

      Jim Peeke

    5. Sam Barba IA says:

      The cost of any social program the government has been involved with is always grossly under estimated.

    6. Pingback: Shopfloor » Blog Archive » In and Out of the Senate Health Care Bill

    7. Pingback: Morning Bell: A Health Bill Nobody Believes In | Fix Health Care Policy

    8. David Banning says:

      This is a job killer. Tax increases, pay limits and Medicare destroyer is the best that the Majority Leader can do? All of this backdoor methods to take more revenue and control over the insurance industry. All it does is make medical expenses more expensive with less tax incentitives to promote consumer health driven reform. This is the tipping point for government takeover of the health care delivery system. Congress put away your checkbook. This resembles nothing of the objectives of the Presidents reform.

    9. Pingback: The Senate Health Bill: Higher Taxes from Harry Reid » The Foundry | Money Blog : 10 Dollars : Money Articles.

    10. Eric; St. Louis says:

      As a small business owner and someone who makes over $250k, I would like to remind these boneheads how our system works. The more successful our businesses are, the more they generate in tax revenue. For the administration and its pawns to continue their socialist programs and choke the economy will only lead to one thing…….the fall of our great country. Don't know about you but, I am very proud of being the world leader. Wouldn't want to have it any other way but, it's coming.

    11. Pingback: Senate Votes Obamacare One Step Closer to the Finish Line : Conservative Blog: Urban Conservative 2.0 – Conservative News & Politics

    12. Pingback: Morning Bell: A Health Bill Nobody Believes In | Conservative Principles Now

    13. Pingback: Adding up the tax increases - MBWorld.org Forums

    14. debbie in indiana says:

      i am appalled at this administrations abuse of power i realize that most politicians seem to be untruthful looking out for their own interests but i think obama has a much more sinister reason ive never in my 61 years beleived that any president wanted to destroy this country and i pray that im wrong but he is sure headed in that direction

    15. Pingback: Making Reid's Healthcare Bill Affordable - A Host Of New Taxes | Reid-B-Gone

    16. Dorie Pierce, Califo says:

      Well, looks like the thing to do is vote everybody out of house and senate, regardless of party. I know I am in 2010.

    17. Henry Massingale, Pa says:

      3/08/2010

      To force pay into another system of failures within Health Care Insurance Groups.

      This economy will not balance with this concept of a tax forum against the Health Care System. The issue of how to force pay into this system of Health Care may have worked but I am still troubled over the progressive tax forum within this Bill. It covers so many items and Countries that it only forces the system to adjust itself. In some areas, increases against the people and the troubled economy, and in other areas, less effects will be felt.

      But this is my big problem, Government Officials seek help and they are to proud to ask us, “the true working force of Government.” It is understandable they have failed the People and within the United States Of America all we ask is to see us as who we are and not try to bring us into this world of the intellectual. I guess our Prime Directive is that of Star Trek, so it must be understood that for millions of people we are just as happy as can be making $13.00 per hour and we have no interest in this world of politics, and how to be a Enstine. Government Officials must understand that there is a level of people within different parts of this Country, that seek to be only that they find to make them happy.

      As for this economy well, it is said that the U.S.A. Arms Division has created enough arsenal to destroy every last creature in the world 2 times over,built with tax dollars. This would be funny if not for the irony of it. And now as time has passed Government Officials keep failing. Before 9/11 all the way to today.

      1.As it is in a world of a system, when employees continue to fail, one or two things happen, one; you get fired, two; if you see into a person a good, then it is political correct to implement a penalty or roll back in pay. But this implement of penalty is more favored in the course of action in the Federal Employment World. So how to fix the economy and unite it with the Health Care issue. It would be in the Countries best interest to implement a 10% per cent penalty against every State, County and Government Official within this Matrix of failures. Hey what is that old saying, what is good for the Goose is good for the Gander. I am serous about this, it is past due to show that our Government Officials they have failed, their system failure reaches into this world of warnings that they brush aside as if the information is not worthy noting. From Pearl Harbor to 9/11/2001 to 3/07/2010 of our tax system and Health Care Reform. This 10% per cent penalty should go into the Health Care Forum.

      2. The big problem that Government Officials have is that they have no street credit. President Obama still has some but if he does not take his family and step away from these dueling Parties, that fight over this Health Care Dollar, and stand with Us he will lose all credit from the streets to the county.

      3. President Obama, I would say to you, you have one last chance to regain the hopes and dreams of the American People. To reach out in a concept that states, if there is 250 million people in trouble because of these failures, I would give all my money to them and then I would say to all that I gave money to, “I have no money left, would you all please give me $1.00 back and then I would have $250. million dollars to start all over again.”

      4. Some have stated that I clam to have spiritual in site or something of the sort. I assure you this is not true, so when I state that I asked God to help, it is my way of saying hey Bobby show me how to work on theses Chevy engines. But I do thank you for the consideration. Consider me a cross of Jethro Bodine from the Beverly Hill Billies with my 10th. Grade education and Vin Diesel from the move Pitch Black.

      Henry Massingale

      FASC Concepts in and for Pay It Forward

      http://www.fascmovement.mysite.com on google, look for page 1 american dream official site

    18. Adam says:

      That's all we need is more taxes.

    19. Zman, Cupertino, CA says:

      Anybody else think that Bill Beach looks like Harry Reid? When I was watching CNBC on the Kudlow Report, I thought I saw Harry Reid talking like a Republican…then I realized that wasn't Harry Reid, but Bill Beach.

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