Friday, March 19, 2010

HC: What's in the Health Bill

Comment: The cart is before the horse-take a breath-the euphoria of the Obamacare bill coming under 1 trillion dollars speaks to Americans understanding of money. Focus citizens-focus-understand what the bill actually permits, disallows and costs before you loose your freedom.

Ira Stoll

The newly available Congressional Budget Office report starts to give a flavor of what is in this health care overhaul bill. Some section headings: "Nutrition Labeling of Standard Menu Items at Chain Restaurants," "Reasonable Break Time for Nursing Mothers," "Restoration of Funding for Abstinence Education," and "Reducing Part D Premium Subsidy for High-Income Beneficiaries." AThe Joint Committee on Taxation has its own report estimating the effects of the bill's revenue provisions. The 40% excise tax on health coverage with annual premiums in excess of $10,200 for individuals and $27,500 for families would go into effect beginning in 2018. There are new excise taxes and fees on health insurers, drug companies, and medical device manufacturers and importers. There's a limit on the tax deduction for compensation expenses for "officers, employees, directors, and service providers of covered health insurance providers," to $500,000 a year -- I believe the limit in the rest of the economy is $1 million.

Beginning in 2013, there is "additional surtax of 0.9% on earned income in excess of $200,000/$250,000 (unindexed), and a 3.8% surtax on investment income for taxpayers with AGI in excess of $200,000/$250,000 (unindexed)." Combined with inflation and bracket creep, that one will be a doozy, and it is by far the biggest increase on the revenue side -- estimated at a $210.2 billion tax increase over eight years. It will hit high-income, high cost-of-living states like New York and California, whose senators support ObamaCare, the hardest. And if these Medicare sutaxes are passed, they may well set a pattern for the extension of similar taxes to pay for Social Security.

The text of the "Amendment in the Nature of a Substitute" is now posted online. It is 153 pages (amending the 2,409-page-long Senate bill) and includes an overhaul of the federal student loan program.

Go to following url to read the bill:http://www.rules.house.gov/bills_details.aspx?NewsID=4606

posted by http://www.futureofcapitalism.com/2010/03/whats-in-the-health-bill

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