Dems revisit tax on the wealthy to fund health care reform

Sep 5 2009

"Senate Democrats are revisiting proposals to raise taxes on high-income people to help pay for an overhaul of the health-care system," The Wall Street Journal reports. "The main proposal getting renewed attention is one by President Barack Obama that would limit the federal tax deductions for higher-income families for mortgage interest and other widely claimed purposes, said two senior Senate Democratic aides. The development reflects a hardening of partisan lines in the effort to forge a health-care bill. Raising taxes on the wealthy was regarded as a virtual deal-breaker for Senate Republicans engaged in negotiations over the spring and summer. So Senate Democrats steered clear of such an approach."

The proposals would also conflict "with Finance Committee Chairman Max Baucus's hopes of taxing the most costly employer-based health plans as a way to reduce overall health-care spending. But many Democrats are losing hope that Mr. Baucus's bipartisan negotiations will produce a deal, so they are beginning to plan for a bill crafted by Democrats" (McKinnon, 9/4).