How do you pay for roughly 47 million uninsured Americans? It is a question of morality. It is a question of what is good for the country and the American people. The large consensus is that health care needs an overhaul, not a makeover. As the cost of health insurance rises, so does the number of uninsured. One in six American’s under the age of sixty are currently uninsured. The estimated cost of this health care fix would be to the tune of $1 trillion over the next decade. How in the world can President Obama, as he has stated many times, make health care reform spending deficit-neutral? By taxing the greatest successors of our capitalistic society of course.
The President has suggested that raising $300 billion over the next decade could be achieved by limiting the deductions that wealthy Americans take on their income taxes. Further more; as he stated during his campaign, the President is open to letting some of the Bush tax cuts, included in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) expire. Former President Bush headed this piece of legislation in the beginning of his first term, which was aimed at lowering the income tax rate. During the Clinton Administration, the highest income tax rate bracket was at 39.6%. With the implementation of EGTRRA, that bracket was reduced to 35% by 2006. If President Obama were to let EGTRRA expire, the bracket would return to 39.6%.
However, all income tax rate brackets were reduced by 2006 under EGTRRA, but the President made it clear that he would maintain the majority of the Bush tax cuts with the exception of the highest income tax rate bracket. This applies to those making more than $372,950 a year. The EGTRRA is due to expire at the end of 2010 because of sunset provisions characterized in the bill, which "repeals all or portions of the law after a specific date, unless further legislative action is taken to extend it."
The House Democrats have a different tax hike proposal for the rich. Congressman Charles Rangel, Chairman of the House Ways and Means Committee, has said that their health care proposal could produce $544 billion over the next decade by implementing a surtax on just 1.2% of American households. It starts with employing a 1% surtax on single filer tax payers making more than $280,000 annually. This also applies to joint filers making more than $350,000 annually. Beyond that, those making more than $1 million annually would pay roughly a 3% surtax.
Both House Democrats and Republicans are currently working on separate health care proposals that cover the majority of the 47 million uninsured, while trying to counterbalance the expenses.
Should wealthy Americans be morally obligated to help the uninsured? Both the President and the majority of fellow Democrats believe so. The bigger question is; will a health care bill pass in the Senate that raises taxes on the wealthy? And, will it pass this year? The Democrats do have the potential of garnering 60 filibuster proof votes, but it is highly unlikely that all Democrats will be on board for this controversial piece of legislation. The President has issued an August deadline for getting a health care bill passed. I say good luck to him.