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Tax Hikes Would
Precede Health Reform Implemenation by Several Years |
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McClatchy (11/25, Lightman) reports,
"Americans could pay billions of dollars more in new taxes for a
few years before they're likely to see significant change in the
nation's healthcare system under legislation that Congress is
considering." McClatchy adds that "some analysts said that's not
necessarily bad," because the extra years' revenue "would give
the government sufficient money and time to get things right,"
but "critics counter that there's no guarantee that the money
will be enough, and in the meantime, higher taxes could stifle
an ailing economy." Congressional Democrats "point to another
benefit: The revenue would help fund a series of steps that
could take effect in 2010. The Senate bill, for instance,
includes $5 billion for a new program to help uninsured people
with pre-existing conditions afford policies."
Republicans criticize imposing tax hikes prior to providing
credits to aid insurance purchases.
The CBS Evening News (11/24, story 5, 4:55, Rodriguez)
reported that healthcare reform will not add to the deficit,
"according to the non-partisan Congressional Budget Office,"
which "found the Senate bill would not only pay for itself
through a raft of cuts and taxes, but would actually reduce the
deficit by $130 billion over ten years. Likewise, the House bill
would put $138 billion back into the budget. ... But, there's a
catch say Republicans. They argue Democrats artificially lowered
the cost of reform by imposing new taxes years before the tax
credits would kick in to help Americans buy insurance." CBS
added, "That's true, but Democrats contend the bill's major
taxes are aimed at the wealthiest Americans. The Senate bill,
for example, boosts the Medicare payroll tax but only for
individuals making more than $200,000 a year, while the House
bill hits those making more than $500,000, with a 5.4% surtax on
income. Republicans argue that many of the other proposed taxes
on medical devices and drugmakers or on high cost insurance
plans will quickly get passed along to consumers."
Centrist
Senators urged to push for more cost containment in reform bill.
In his "Economic Scene" column on the front of the
New York Times (11/25, B1)
Business Day section, David Leonhardt writes that the Senate
healthcare reform "bill includes nearly every big idea that
health economists and medical researchers have for slowing cost
growth -- as well as for improving the patchwork quality of
American healthcare." However, "many of the ideas...have been at
least partly neutered." Leonhardt argues that this gives
centrist Senators an opportunity to push the cost containment
proposals they have been claiming to support. "To achieve their
stated goal, they don't suddenly need to turn themselves into
healthcare wonks and rewrite the bill. They just need to improve
what's already there."
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