Skip to content

Never Have So Few Words Cost So Many So Much

June 23, 2009

While House Democrats have not revealed the cost of their health care reform “discussion draft,” CBO has already said the Senate HELP Committee Democrats’ draft would cost $1 trillion (before adding the massive Medicaid expansion) and the Senate Finance Committee’s draft would cost $1.6 trillion.  The House Democrat bill is, on many fronts, more liberal and likely more costly than either of those bills.  So, how will it be paid for?  Well, those details are TBP – “to be provided.” 


According to media reports, some of the taxes House Democrats are eyeing to help pay for their government take over of health care include:

  • A $306 billion tax increase on Americans who get health coverage through their employers, taxing these benefits for the first time;
  • A new $200 billion tax on employers for their health care expenditures, driving up the cost of employer-provided health coverage;
  • A new dime-a-can increase in the price of soft drinks, generating $112 billion in new tax revenue;
  • Increasing taxes on a six-pack of beer and a bottle of wine by about 50 cents, raising $61.5 billion;
  • Increasing the Medicare payroll tax by 22.4%;
  • A new value-added tax, or national sales tax, of up to 1.5 percent or more; and
  • A 2 percent income tax increase on single taxpayers earning more than $200,000 a year and households earning more than $250,000