The Senate Health Bill: Higher Taxes from Harry Reid
Rea Hederman /
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. (more…)