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Tuesday, October 13, 2009

Middle Class Pays More Under Baucus

The Congressional Budget Office issued a report giving the Baucus health care bill the stamp of deficit-reduction approval, but this was earned only through steep increases in indirect taxes, such as the coverage mandate. The coverage mandate included in Senator Baucus’ health care plan has significant and disturbing implications for middle-class Americans. Individuals earning up to $45,520 and families earning up to $92,640 would need to cut corners to make ends meet, all in response to the indirect tax implicit in a health care mandate.

For individuals making $34,140 or three times the Federal Poverty Level, the Baucus health care proposal could mandate up to $4,097 in annual premiums, a sum which could have been spent on over nine months of food, almost four months of housing or well over a year of utilities. For a family of four making $69,480 or 300% of poverty, a mandated annual premium of $8,338 would be worth the equivalent of over ten months of food, four months of housing or almost two years of utilities. Is this change to the health care system actual “reform”, or something else?

These numbers become even more staggering for insurance purchasers at the upper threshold of the price cap. Individuals earning $45,520, four times the Federal Poverty Level, would be required to pay $5,462 for their health insurance, when they could have used this same money on over a year of food, four months of rent or a year and a half of utilities. A family earning $92,640, 400% of poverty, would be on the hook for $11,117, the equivalent of over a year of food, five months of housing or two years of utilities. This is quite a burden to place on middle-class Americans.

These mandates are the effective equivalent of taxes on the middle class, because those required to purchase and spend large sums of their income on health insurance would be subsidizing the system. Mandates are the means to levy these taxes, but in the end load the same burden upon the shoulders of the average Americans as a tax hike would. Sadly, mandates are not the only way in which Baucus’ proposal will increase the burden on Americans.

GO HERE to read more.

11 comments:

Anonymous said...

If this is true than this plan will be a huge failure. Most of the middle class is swimming in debt and barely able to make ends meet. If this passes, all hell will break loose!

Anonymous said...

Ugh, I know how much I pay a year in health care premiums now and it is nowhere near that level. If this is passed they can expect one more family on the welfare rolls. But I have a feeling that might be what they want.

Anonymous said...

They want everone depending on the government. From there Socialism is just around the corner. Time to recall these jerks now before the damage is too late.

Anonymous said...

Vote is TODAY in Senate Finance Committe.
10:32 is right.
More poverty, mpre misery, MORE GOVERNMENT control
Socialism here we come.

Anonymous said...

I checked the link. I see claims but no references or documentation of sources. You might as well be debating a "wikipedia" article.

Joel said...

Hello people, They are not talking about the 13 million additional people that will be put on Medicaid. This at a cost to the states of over $300 billion dollars. Who the heck do you think will pay for that? That's how they get away with saying it will not increase the federal deficit, but it will bankrupt the states.

Anonymous said...

Looking around here people would rather spend it on a new truck than boring old health insurance.

Anonymous said...

The amount stated for individual taxpayers is about the same it would cost me today to get a policy.
I can't afford it today, how the hell will I afford it with this bill?
If I could AFFORD it, I would HAVE it!
Do you think it's fun walking around with no insurance praying something doesn't happen?
I'm not asking for subsidy from ANYONE, force the insurance companies to make the insurance truly AFFORDABLE!
We should be talking INSURANCE reform, not HEALTHCARE reform!

Anonymous said...

11:45 Those links are to actual bill, CBO estimate and extensive analysis on the effects of Baucus bill. All info you'll ever need on this tax penalizing bill.

Anonymous said...

Too bad basic no cost changes are being ignored.

Torte reform, insurance portability, insurance sales across state lines, and waste and fraud removed from Medicare/Medicaid.

However Obama wants the unions and lawyers to benefit from this destruction of the best health care system in the world and government control of your life.

SPEAK UP, its your life and health to loose.

Anonymous said...

Congress has exempted itself from any new health care plan.

H.R. 615 Amendment will require congress to be covered by same plan.

Read about H.R.615 by scrolling down a bit and SIGN PETITION for congress to be included.