Commentary Magazine


Topic: Joint Committee on Taxation

Flotsam and Jetsam

Jeffrey Herf discovers that “liberals should be willing to devote more efforts to the moral and political delegitimation of radical Islamism. It is a form of totalitarian ideology. It is profoundly reactionary and deeply anti-Semitic and, in this sense, racist. It draws on a radicalization and selective reading of the religion of Islam. During both World War II and the cold war, the United States derived great strategic value from naming its adversaries and publicly discussing and denouncing their ideologies. It fought wars of ideas that accompanied the force of arms. We need to understand the importance of doing that today as well.” Who knew?

Candidate Obama denied that Zbigniew Brzezinski was an adviser on the Middle East, but now Brzezinski’s giving Obama a nudge to impose a peace plan. It’s almost as if candidate Obama had disguised his true inclinations on Israel.

The mainstream media have hyped the comments of stray Tea Party activists but almost entirely ignored the doubling of anti-Semitic incidents in 2009. “Of course, recent history has shown American media only concerned with acts of violence when they fit into an agenda being advanced.”

Maybe we should bring back the term “Islamic radicalism“: “Chilling new details about the foiled Al Qaeda plot to blow up the city’s busiest subways have emerged as a fourth suspect was quietly arrested in Pakistan, the Daily News has learned. The unidentified man, who helped plan the plot, is expected to be extradited to the U.S. to betried in Brooklyn Federal Court with Adis Medunjanin and Zarein Ahmedzay of Flushing, Queens, sources said.”

Imagine the damage she’d do with a lifetime appointment: “The White House moved quickly today to squelch the widening speculation that Hillary Clinton could be nominated to the Supreme Court, as Senator Orrin Hatch suggested this morning.”

Shocking as it may seem, North Korea is not going to be sweet-talked into giving up its nuclear ambitions.

It’s not just Israel that’s staying away: “President Obama is holding one of the biggest global summits ever on U.S. soil starting Monday, but for all the hoopla, the event will be missing America’s strongest allies. As remarkable as it is, the fact that neither British Prime Minister Gordon Brown nor Israeli Prime Minister Benjamin Netanyahu are attending President Obama’s nuclear security summit in Washington Monday and Tuesday is not altogether surprising.Relations with both countries — Israel in particular — have grown strained under Obama. Combined with Afghan President Hamid Karzai’s recent defiance of the administration, questions are growing about the president’s ability to maintain important relationships. … The president’s critics, many of them from the Bush administration, say the summit absences — heads of state from Australia and Saudia Arabia also are not attending — are the most glaring examples of a floundering foreign policy that treats rivals and enemies better than friends.”

An expensive broken promise by Obama: “Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — because of healthcare reform, according to the Joint Committee on Taxation, Congress’s official scorekeeper for legislation. The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.”

Charles Krauthammer on Bart Stupak: “The guy’s political epitaph will read ‘A good man who played over his head.’ He held out and then he got squeezed by the president and the speaker. He caved. And the worst part of it was that he pretended that the instrument of surrender he signed was a victory. It’s a sad ending to a long career.”

Jeffrey Herf discovers that “liberals should be willing to devote more efforts to the moral and political delegitimation of radical Islamism. It is a form of totalitarian ideology. It is profoundly reactionary and deeply anti-Semitic and, in this sense, racist. It draws on a radicalization and selective reading of the religion of Islam. During both World War II and the cold war, the United States derived great strategic value from naming its adversaries and publicly discussing and denouncing their ideologies. It fought wars of ideas that accompanied the force of arms. We need to understand the importance of doing that today as well.” Who knew?

Candidate Obama denied that Zbigniew Brzezinski was an adviser on the Middle East, but now Brzezinski’s giving Obama a nudge to impose a peace plan. It’s almost as if candidate Obama had disguised his true inclinations on Israel.

The mainstream media have hyped the comments of stray Tea Party activists but almost entirely ignored the doubling of anti-Semitic incidents in 2009. “Of course, recent history has shown American media only concerned with acts of violence when they fit into an agenda being advanced.”

Maybe we should bring back the term “Islamic radicalism“: “Chilling new details about the foiled Al Qaeda plot to blow up the city’s busiest subways have emerged as a fourth suspect was quietly arrested in Pakistan, the Daily News has learned. The unidentified man, who helped plan the plot, is expected to be extradited to the U.S. to betried in Brooklyn Federal Court with Adis Medunjanin and Zarein Ahmedzay of Flushing, Queens, sources said.”

Imagine the damage she’d do with a lifetime appointment: “The White House moved quickly today to squelch the widening speculation that Hillary Clinton could be nominated to the Supreme Court, as Senator Orrin Hatch suggested this morning.”

Shocking as it may seem, North Korea is not going to be sweet-talked into giving up its nuclear ambitions.

It’s not just Israel that’s staying away: “President Obama is holding one of the biggest global summits ever on U.S. soil starting Monday, but for all the hoopla, the event will be missing America’s strongest allies. As remarkable as it is, the fact that neither British Prime Minister Gordon Brown nor Israeli Prime Minister Benjamin Netanyahu are attending President Obama’s nuclear security summit in Washington Monday and Tuesday is not altogether surprising.Relations with both countries — Israel in particular — have grown strained under Obama. Combined with Afghan President Hamid Karzai’s recent defiance of the administration, questions are growing about the president’s ability to maintain important relationships. … The president’s critics, many of them from the Bush administration, say the summit absences — heads of state from Australia and Saudia Arabia also are not attending — are the most glaring examples of a floundering foreign policy that treats rivals and enemies better than friends.”

An expensive broken promise by Obama: “Taxpayers earning less than $200,000 a year will pay roughly $3.9 billion more in taxes — in 2019 alone — because of healthcare reform, according to the Joint Committee on Taxation, Congress’s official scorekeeper for legislation. The new law raises $15.2 billion over 10 years by limiting the medical expense deduction, a provision widely used by taxpayers who either have a serious illness or are older.”

Charles Krauthammer on Bart Stupak: “The guy’s political epitaph will read ‘A good man who played over his head.’ He held out and then he got squeezed by the president and the speaker. He caved. And the worst part of it was that he pretended that the instrument of surrender he signed was a victory. It’s a sad ending to a long career.”

Read Less

We Still Don’t Know What’s in It

Bill McGurn helps highlight two defects in ObamaCare — its uncertainty and its potential to bully the American people. They come together in the provision for an individual mandate, something Obama ran against during the campaign (when he was also promising not to raise taxes on those making less than $250,000).

How could there be uncertainty about this key feature? Nancy Pelosi promised, after all, that if we passed it, we’d find out what was in it. Well, this is what comes of racing through a largely secretive legislative process. McGurn explains “one of the murkiest bits of this legislation”:

In testimony before a House Ways and Means subcommittee last Thursday, the IRS commissioner deflected questions about the agency’s precise role vis-à-vis health care. Mr. Shulman reassured citizens that this bill does not “fundamentally alter” their relationship with the IRS, and said the IRS would not be snooping into their health records. About the penalties associated with the mandate, he was less clear.

Partly that’s because the law is unclear. The original House bill opened the door for criminal sanctions against Americans who didn’t buy health insurance and pay the penalty. The Senate bill did the same until Sen. John Ensign (R., Nev.) successfully pushed to amend the bill. Even so, the final language begs the question that Mr. Shulman and Mr. Weiner avoided: Who’s going to enforce the mandate, and how?

You might wonder how we can possibly predict costs if we don’t know how many people, if any, are going to herded into the arms of Big Insurance. You might wonder how we are going to achieve compliance with a law that many already resent if it’s not even clear whether the IRS will go after people. Both are good questions, revealing just how uninterested the Democrats were in thinking through and crafting effective legislation. They simply wanted a notch in their belt and to silence the hollering from their base. Getting a coherent, understandable legislative scheme just wasn’t a priority for them.

And then there is the bullying if, in fact, the mandate exists and will be enforced with the full power of the federal government:

Almost by definition, those hit by the mandate will be either young people starting out, or those working for smaller businesses that do not provide employees with health coverage. Back in November, a report by the Congressional Budget Office and Joint Committee on Taxation estimated that nearly half (46%) of the mandate penalties will be paid by Americans under 300% of the poverty line. In today’s dollars, that works out to $32,500 for an individual. For a family of four, it’s $66,150. …

In his appearance before Congress, Mr. Shulman stated he was still working on “the proper resources” the IRS would need to handle the tax provisions of the health-care act. Maybe that won’t mean 16,500 new agents. If the Republicans do manage to take back Congress come November, however, it should mean hearings in which Mr. Shulman provides the American people with specific answers about how much bigger the IRS is going to get because of this bill—and how exactly the IRS will deal with Americans who don’t pay the penalty tax.

So we will, as McGurn points out, either witness the IRS hassling modest-income Americans into buying insurance they don’t want, or the law will be “unenforced.” If it is the latter, all the estimated cost “savings” supposedly achieved by expanding the risk pool of the newly insured can be tossed onto the heap of misrepresentations and fiscal fantasies deployed to pass the bill despite the dire warnings of those like Rep. Paul Ryan. This is the personification of the ever-growing bureaucratic state — incomprehensible, threatening, and very, very expensive.

Bill McGurn helps highlight two defects in ObamaCare — its uncertainty and its potential to bully the American people. They come together in the provision for an individual mandate, something Obama ran against during the campaign (when he was also promising not to raise taxes on those making less than $250,000).

How could there be uncertainty about this key feature? Nancy Pelosi promised, after all, that if we passed it, we’d find out what was in it. Well, this is what comes of racing through a largely secretive legislative process. McGurn explains “one of the murkiest bits of this legislation”:

In testimony before a House Ways and Means subcommittee last Thursday, the IRS commissioner deflected questions about the agency’s precise role vis-à-vis health care. Mr. Shulman reassured citizens that this bill does not “fundamentally alter” their relationship with the IRS, and said the IRS would not be snooping into their health records. About the penalties associated with the mandate, he was less clear.

Partly that’s because the law is unclear. The original House bill opened the door for criminal sanctions against Americans who didn’t buy health insurance and pay the penalty. The Senate bill did the same until Sen. John Ensign (R., Nev.) successfully pushed to amend the bill. Even so, the final language begs the question that Mr. Shulman and Mr. Weiner avoided: Who’s going to enforce the mandate, and how?

You might wonder how we can possibly predict costs if we don’t know how many people, if any, are going to herded into the arms of Big Insurance. You might wonder how we are going to achieve compliance with a law that many already resent if it’s not even clear whether the IRS will go after people. Both are good questions, revealing just how uninterested the Democrats were in thinking through and crafting effective legislation. They simply wanted a notch in their belt and to silence the hollering from their base. Getting a coherent, understandable legislative scheme just wasn’t a priority for them.

And then there is the bullying if, in fact, the mandate exists and will be enforced with the full power of the federal government:

Almost by definition, those hit by the mandate will be either young people starting out, or those working for smaller businesses that do not provide employees with health coverage. Back in November, a report by the Congressional Budget Office and Joint Committee on Taxation estimated that nearly half (46%) of the mandate penalties will be paid by Americans under 300% of the poverty line. In today’s dollars, that works out to $32,500 for an individual. For a family of four, it’s $66,150. …

In his appearance before Congress, Mr. Shulman stated he was still working on “the proper resources” the IRS would need to handle the tax provisions of the health-care act. Maybe that won’t mean 16,500 new agents. If the Republicans do manage to take back Congress come November, however, it should mean hearings in which Mr. Shulman provides the American people with specific answers about how much bigger the IRS is going to get because of this bill—and how exactly the IRS will deal with Americans who don’t pay the penalty tax.

So we will, as McGurn points out, either witness the IRS hassling modest-income Americans into buying insurance they don’t want, or the law will be “unenforced.” If it is the latter, all the estimated cost “savings” supposedly achieved by expanding the risk pool of the newly insured can be tossed onto the heap of misrepresentations and fiscal fantasies deployed to pass the bill despite the dire warnings of those like Rep. Paul Ryan. This is the personification of the ever-growing bureaucratic state — incomprehensible, threatening, and very, very expensive.

Read Less

Promises? What Promises?

Union bosses are having a get-together with the president today to discuss his broken promise not to tax those families who make less than $250,000. They will meet behind closed doors, violating the promise to C-SPAN that we’d watch them all sit around a big table to work out the details. But for tough guys, these Big Labor fellas seem awfully wimpy, as this report explains:

Andy Stern, president of the Service Employees International Union (SEIU), told The Hill on Friday that the final bill would likely include some form of the excise tax.“When you have a president who says he wants to incorporate it and a Senate that says it wants to incorporate it and some in the House who say they want to incorporate it, it’s hard to look that in the face and say we can just win this outright,” Stern said.

I wonder how their members feel about that. Millions and millions of dollars were taken from union members’ pockets to be spent in direct contributions and soft-money expenditures to elect Democrats to Congress and Obama to the White House. And what they get for that is nothing — worse than nothing. Union members already have health care. What they’re now going to get are tax increases. Or perhaps they’ll instead see those generous health-care benefits slashed to avoid the excise tax (so much for “guaranteeing” to keep the health plan you have). Meanwhile, unemployment is in double digits and employers aren’t anxious to hire anyone — union or nonunion. What exactly have union members gotten from Washington and from their own leaders?

And if union leaders succeed in trimming the tax, if not eliminating it, what then? Well, other Americans are going to get smacked because the money has to come from somewhere:

The Senate bill would raise about $150 billion from 2013 to 2019 by taxing employer-provided health plans costing more than $8,500 for individuals and $23,000 for families. Labor officials, citing an analysis by the Joint Committee on Taxation, claim this would hit nearly 31 million households by 2019. But limiting the excise tax would require Senate and House negotiators to find alternative sources of revenue to fund healthcare reform.

Who’s the likely victim? Well, it seems that “labor leaders may push for a bigger increase in the Medicare Hospital Insurance tax.” Because we haven’t stuck it to health-care providers or endangered the fiscal viability of Medicare enough, I suppose.

Well, Democrats are bound and determined to push something through. Now the only question, it seems, is determining which groups will hate the bill more: union members, seniors, young people (forced to buy insurance), the Left, the Right, good-government types, independents, or tax-hike opponents. So many groups, so many grievances.

Union bosses are having a get-together with the president today to discuss his broken promise not to tax those families who make less than $250,000. They will meet behind closed doors, violating the promise to C-SPAN that we’d watch them all sit around a big table to work out the details. But for tough guys, these Big Labor fellas seem awfully wimpy, as this report explains:

Andy Stern, president of the Service Employees International Union (SEIU), told The Hill on Friday that the final bill would likely include some form of the excise tax.“When you have a president who says he wants to incorporate it and a Senate that says it wants to incorporate it and some in the House who say they want to incorporate it, it’s hard to look that in the face and say we can just win this outright,” Stern said.

I wonder how their members feel about that. Millions and millions of dollars were taken from union members’ pockets to be spent in direct contributions and soft-money expenditures to elect Democrats to Congress and Obama to the White House. And what they get for that is nothing — worse than nothing. Union members already have health care. What they’re now going to get are tax increases. Or perhaps they’ll instead see those generous health-care benefits slashed to avoid the excise tax (so much for “guaranteeing” to keep the health plan you have). Meanwhile, unemployment is in double digits and employers aren’t anxious to hire anyone — union or nonunion. What exactly have union members gotten from Washington and from their own leaders?

And if union leaders succeed in trimming the tax, if not eliminating it, what then? Well, other Americans are going to get smacked because the money has to come from somewhere:

The Senate bill would raise about $150 billion from 2013 to 2019 by taxing employer-provided health plans costing more than $8,500 for individuals and $23,000 for families. Labor officials, citing an analysis by the Joint Committee on Taxation, claim this would hit nearly 31 million households by 2019. But limiting the excise tax would require Senate and House negotiators to find alternative sources of revenue to fund healthcare reform.

Who’s the likely victim? Well, it seems that “labor leaders may push for a bigger increase in the Medicare Hospital Insurance tax.” Because we haven’t stuck it to health-care providers or endangered the fiscal viability of Medicare enough, I suppose.

Well, Democrats are bound and determined to push something through. Now the only question, it seems, is determining which groups will hate the bill more: union members, seniors, young people (forced to buy insurance), the Left, the Right, good-government types, independents, or tax-hike opponents. So many groups, so many grievances.

Read Less

Flotsam and Jetsam

What a difference less than a year of one-party liberal rule makes: “Republicans can take a bit of satisfaction from a new survey by Democracy Corps. … The survey found that voters now say, by a three-point margin (45% to 42%), that Republicans would do a better job on the economy than Democrats. That’s a change from the 16-point lead Democrats had in May on the question of managing the economy, and marks the first time since 2002 that Republicans have had a lead on the issue in Democracy Corps polling.”

The Afghans, I think, have reason to worry: “Afghan officials hope President Barack Obama’s address on Afghanistan won’t be weighted too heavily on an exit strategy — even though that’s the message many Americans and Democrats in Congress want to hear. If he talks extensively in his speech Tuesday night about winding down the war, Afghans fear the Taliban will simply bide their time until the Americans abandon the country much as Washington did after the Soviets left 20 years ago.”

The latest on radical jihadism at a taxpayer-supported college: “Siraj Wahhaj, a radical Muslim cleric who authorities in 1995 identified as an unindicted co-conspirator in the 1993 World Trade Center bombing, was last week invited to Queens College to speak on the subject ‘How Islam Perfected Thanksgiving.’ Wahhaj testified in 1996 for convicted terror plotter Omar Abdel Rahman, who was charged with attempting to bomb New York’s Lincoln Tunnel and the United Nations.” He was invited by the Muslim Student Association, a member of which was reported to have declared after the showing of a radical Muslim film: ‘If I had enough money I would be part of the jihad army, I would kill all the Jews.’ … Another spoke of getting a ‘bomb.’” Read the whole outrageous account.

The CBO’s latest: “Individual insurance premiums would increase by an average of 10 percent or more, according to an analysis of the Senate healthcare bill. The long-awaited report by the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) also concluded that subsidies provided by the legislation would make coverage cheaper for those who qualify.” And more expensive for everyone else.

The epidemic of BRIs (Bagel Related Injuries): “In 2008, according to an analysis of fingers cut by knives as reported in the government’s National Electronic Injury Surveillance System, 1,979 people appeared in ERs with a BRI. Chicken-related injuries (3,463) led the category, but recorded bagel injuries were otherwise exceeded only by potato, apple and onion injuries. Bagels, in fact, were implicated in more finger cuts than pumpkins (1,195) or cheese (1,236). … (Of course, many BRI victims skip ERs and go to urgent-care offices. Or they stay home and eat breakfast anyway.)”

Jeffrey Goldberg acknowledges that in objecting to building in Gilo, within Jerusalem, Obama “doesn’t seem to understand that all settlements are not created equal. Palestinian negotiators have fairly consistently recognized that Gilo, a Jerusalem suburb built over the 1967 Green Line, but south, not east, of the city, would remain inside Israel in a final-status peace deal.” What’s worse is Obama’ justifying, or at the very least predicting, Palestinian violence. (“Obama’s statement reads almost as a kind of preemptive rationalization for violent Palestinian protest.”) Is there anyone who thinks the Obami haven’t made the Middle East “peace process” worse?

Not so fast: “Senators may have agreed to have the debate; but the parameters of the debate have not been set. The leaders have to agree on which amendments to consider when. The first two amendments were formally introduced Monday afternoon, but when votes will occur remains unclear.” One of those is an amendment by Sen. John McCain to strip out the Democrats’ draconian Medicare cuts: “Stripping the Medicare cost savings (cuts) would essentially kill the bill and send it back to committee.” Because the bill, you see, depends on hundreds of billions being slashed from Medicare. So don’t expect a vote too soon.

Well, he did say he was leaning against running: “The conservative blogosphere unleashed a torrent of criticism against Mike Huckabee Monday after a man whose sentence he commuted as Arkansas governor was suspected of gunning down four police officers in Washington state over the weekend.”

What a difference less than a year of one-party liberal rule makes: “Republicans can take a bit of satisfaction from a new survey by Democracy Corps. … The survey found that voters now say, by a three-point margin (45% to 42%), that Republicans would do a better job on the economy than Democrats. That’s a change from the 16-point lead Democrats had in May on the question of managing the economy, and marks the first time since 2002 that Republicans have had a lead on the issue in Democracy Corps polling.”

The Afghans, I think, have reason to worry: “Afghan officials hope President Barack Obama’s address on Afghanistan won’t be weighted too heavily on an exit strategy — even though that’s the message many Americans and Democrats in Congress want to hear. If he talks extensively in his speech Tuesday night about winding down the war, Afghans fear the Taliban will simply bide their time until the Americans abandon the country much as Washington did after the Soviets left 20 years ago.”

The latest on radical jihadism at a taxpayer-supported college: “Siraj Wahhaj, a radical Muslim cleric who authorities in 1995 identified as an unindicted co-conspirator in the 1993 World Trade Center bombing, was last week invited to Queens College to speak on the subject ‘How Islam Perfected Thanksgiving.’ Wahhaj testified in 1996 for convicted terror plotter Omar Abdel Rahman, who was charged with attempting to bomb New York’s Lincoln Tunnel and the United Nations.” He was invited by the Muslim Student Association, a member of which was reported to have declared after the showing of a radical Muslim film: ‘If I had enough money I would be part of the jihad army, I would kill all the Jews.’ … Another spoke of getting a ‘bomb.’” Read the whole outrageous account.

The CBO’s latest: “Individual insurance premiums would increase by an average of 10 percent or more, according to an analysis of the Senate healthcare bill. The long-awaited report by the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) also concluded that subsidies provided by the legislation would make coverage cheaper for those who qualify.” And more expensive for everyone else.

The epidemic of BRIs (Bagel Related Injuries): “In 2008, according to an analysis of fingers cut by knives as reported in the government’s National Electronic Injury Surveillance System, 1,979 people appeared in ERs with a BRI. Chicken-related injuries (3,463) led the category, but recorded bagel injuries were otherwise exceeded only by potato, apple and onion injuries. Bagels, in fact, were implicated in more finger cuts than pumpkins (1,195) or cheese (1,236). … (Of course, many BRI victims skip ERs and go to urgent-care offices. Or they stay home and eat breakfast anyway.)”

Jeffrey Goldberg acknowledges that in objecting to building in Gilo, within Jerusalem, Obama “doesn’t seem to understand that all settlements are not created equal. Palestinian negotiators have fairly consistently recognized that Gilo, a Jerusalem suburb built over the 1967 Green Line, but south, not east, of the city, would remain inside Israel in a final-status peace deal.” What’s worse is Obama’ justifying, or at the very least predicting, Palestinian violence. (“Obama’s statement reads almost as a kind of preemptive rationalization for violent Palestinian protest.”) Is there anyone who thinks the Obami haven’t made the Middle East “peace process” worse?

Not so fast: “Senators may have agreed to have the debate; but the parameters of the debate have not been set. The leaders have to agree on which amendments to consider when. The first two amendments were formally introduced Monday afternoon, but when votes will occur remains unclear.” One of those is an amendment by Sen. John McCain to strip out the Democrats’ draconian Medicare cuts: “Stripping the Medicare cost savings (cuts) would essentially kill the bill and send it back to committee.” Because the bill, you see, depends on hundreds of billions being slashed from Medicare. So don’t expect a vote too soon.

Well, he did say he was leaning against running: “The conservative blogosphere unleashed a torrent of criticism against Mike Huckabee Monday after a man whose sentence he commuted as Arkansas governor was suspected of gunning down four police officers in Washington state over the weekend.”

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Taxing Our Patience

The Hill, reminding us that certain senators have promised not to raise taxes, explains just how many taxes there are in the pending health-care bill:

Individuals would face penalties for failing to purchase insurance and those earning more than $200,000 would see their Medicare payroll tax rise from 1.45 percent to 1.95 percent. The payroll tax rise would hit couples earning $250,000 or more.

The measure would also impose a $2 billion annual tax on medical devices such as pacemakers; a broad $6.7 billion annual tax on the health insurance industry; a 5 percent tax on cosmetic surgery; and would eliminate tax deductions for employer-provided prescription drug coverage in retirement.

An analysis by the Joint Committee on Taxation found that in the year 2019, 77 percent of the cost of the tax increases proposed in the Senate Finance Committee’s healthcare bill would be carried by families earning less than $250,000 a year.

There is a total of $494B by some estimation. And, of course, this flies in the face of Obama’s pledge not to raise taxes on those making less than $250,000. Specifically, labor unions aren’t very happy about the tax on so-called Cadillac health-care plans (which were in many collective-bargaining negotiations provided in lieu of higher wages or other benefits): “Labor unions have opposed this tax, which funds a substantial portion of the bill, because they argue that it would hit many unionized, working-class families.”

All this would be bad enough in ordinary times but we are, after all, not yet out of the recession. Can anyone really imagine that hundreds of billions in new taxes are going to help matters? We are continually told that taxes are receding as a top issue. The way to test that proposition is to vote for massive tax hikes, in violation of a specific campaign pledge in the middle of an economic downturn. How many lawmakers will have the nerve to find out?

The Hill, reminding us that certain senators have promised not to raise taxes, explains just how many taxes there are in the pending health-care bill:

Individuals would face penalties for failing to purchase insurance and those earning more than $200,000 would see their Medicare payroll tax rise from 1.45 percent to 1.95 percent. The payroll tax rise would hit couples earning $250,000 or more.

The measure would also impose a $2 billion annual tax on medical devices such as pacemakers; a broad $6.7 billion annual tax on the health insurance industry; a 5 percent tax on cosmetic surgery; and would eliminate tax deductions for employer-provided prescription drug coverage in retirement.

An analysis by the Joint Committee on Taxation found that in the year 2019, 77 percent of the cost of the tax increases proposed in the Senate Finance Committee’s healthcare bill would be carried by families earning less than $250,000 a year.

There is a total of $494B by some estimation. And, of course, this flies in the face of Obama’s pledge not to raise taxes on those making less than $250,000. Specifically, labor unions aren’t very happy about the tax on so-called Cadillac health-care plans (which were in many collective-bargaining negotiations provided in lieu of higher wages or other benefits): “Labor unions have opposed this tax, which funds a substantial portion of the bill, because they argue that it would hit many unionized, working-class families.”

All this would be bad enough in ordinary times but we are, after all, not yet out of the recession. Can anyone really imagine that hundreds of billions in new taxes are going to help matters? We are continually told that taxes are receding as a top issue. The way to test that proposition is to vote for massive tax hikes, in violation of a specific campaign pledge in the middle of an economic downturn. How many lawmakers will have the nerve to find out?

Read Less




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