Harry Reid unveiled his $849 billion health-care bill tonight. It weighs in at 2,074 pages. Keith Hennessey runs through the tax hikes in the bill:
The following is from the Joint Tax Committee estimate of the revenue effects of the Reid bill. I have listed provisions with major revenue effects (+$20 B / 10 years) and a few others that have significant policy or political impacts. There are some smaller changes as well, which you can see for yourself in the 3-page document. All revenue figures are revenues raised over the ten-year period 2010-2019.
1. 40% excise tax on health coverage in excess of $8,500 (individuals) / $23,000 (families). Amounts are indexed for inflation by CPI-U + 1% - begins in 2013 - $149 B tax increase
2. Additional 0.5% Medicare (Hospital Insurance) tax on wages in excess of $200,000 ($250,000 for joint filers) - begins in 2013 - $54 B tax increase
3. Impose annual fee on manufacturers and importers of branded drugs - begins in 2010 - $22 B tax increases
4. Impose annual fee on manufacturers and importers of certain medical devices - begins in 2010 - $19 B tax increase
5. Cut in half (to $500K) the amount of an executive's compensation that a health plan can deduct from its corporate income taxes - begins in 2013 - $600 million tax increase
6. Impose 5% excise tax on cosmetic surgery and similar procedures - begins for surgery in 2010 - $6 B tax increase!
In total the bill would raise taxes by $370 B over ten years.
Analysis on the tax hikes from Hennessey at the link. Reid has decided to raise the Medicare payroll tax on individuals making more than $106,800; perhaps not the smartest way to boost employment.
The CBO report says the bill would save $127 billion over 10 years--but as Allahpundit notes "$127 billion over 10 years sounds like a lot until you remember that $176 billion was October's monthly deficit." We still haven't gotten a look at the CBO report to see just how bad the Medicare cuts will be [Update: The CBO (download here) reports Medicare will be cut by $491 billion over 10 years], but tell grandma and granpa not to worry: Under this bill they'll get $500 in 2010 when Harry Reid just so happens to be up for reelection.
The bill also allows taxpayer-funding for abortions through the public health insurance plan and the health insurance exchanges; the language is similar to the Capps amendment that tried to conceal federal funding of abortion through an accounting gimmick (see here). National Right to Life Committee calls the amendment "completely unacceptable."
Senator Mitch McConnell said in a statement: "This bill has been behind closed doors for weeks. Now, it's America's turn, and this will not be a short debate. Higher premiums, tax increases and Medicare cuts to pay for more government-the American people know that is not reform."
