WASHINGTON (MarketWatch) — House Democrats intend to pay for their health-care reform plan with higher taxes on wealthy Americans.
A tax on the wealthy is the “best way” to raise money for the overhaul, Rep. Charles Rangel, the New York Democrat who is chairman of the House Ways and Means Committee, told reporters late Friday.
The House Democratic proposal, which includes a government-run insurance plan, is expected to be formally unveiled on Monday.
It faces an uphill battle, as even many Democrats are concerned about the political repercussion of higher taxes.
House Republican leader John Boehner, R-Ohio, said the tax plan would be a “job-killer.”
“House Democrats have finally made clear that they will fund their government takeover of health care by raising taxes on hard-working American families and small businesses in the midst of one of the worst recessions in recent memory. With unemployment nearing double digits nationwide, the last thing we need is a massive tax hike that will punish small businesses and cost even more American jobs,” Boehner said in a statement.
President Obama promised during the campaign not to raise taxes on Americans earning less than $250,000 per year.
Obama was heading back to Washington over the weekend from a foreign trip that included the Group of 8 summit in Italy. He is expected to wade into the health-care debate upon his return.
Progress on health-care legislation has stalled over the central issue of who will pay for the changes.
Rangel told reporters that the tax could start in 2011.
Married couples making $350,000 would have to pay a surtax of 1%. The surtax would increase for higher-income families.
Demos want higher tax on wealthy for health care – MarketWatch.
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