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Dem Senator Warns of 'Big, Big Tax' on Middle Class in Baucus Bill
September 16, 2009 7:45 AM
ABC News' Teddy Davis reports:
It's not every day that you hear a Democratic senator charge that a fellow Democrat is proposing to raise taxes on the middle class, but that is what happened on Tuesday when Sen. Jay Rockefeller, D-W.Va., ripped into the health-care bill developed by Sen. Max Baucus, D-Mt., the chairman of the Senate Finance Committee.
The Baucus proposal would impose, starting in 2013, a 35 percent excise tax on insurance companies for "high-cost plans" -- defined as those above $8,000 for individuals and $21,000 for family plans.
Health economists believe a tax on high-priced benefits could help slow the growth of health costs by making consumers more sensitive to prices.
The tax contemplated by Baucus is also a big revenue raiser. It is expected to raise $200 billion, money that Baucus is hoping to use to pay for subsidies for the uninsured.
Given how much money this kind of tax can raise, Rockefeller says he understands why it is "tempting."
The West Virginia Democrat worries, however, that a lot of middle class workers, like the coal miners in his state, will end up facing "a big, big tax" under the Baucus bill because they currently enjoy generous employer-provided health care benefits which they receive tax free.
Referring to Baucus, Rockefeller said, "He should understand that (his proposal) means that virtually every single coal miner is going to have a big, big tax put on them because the tax will be put on the company and the company will immediately pass it down and lower benefits because they are self insured, most of them, because they are larger. They will pass it down, lower benefits, and probably this will mean higher premiums for coal miners who are getting very good health care benefits for a very good reason. That is, like steelworkers and others, they are doing about the most dangerous job that can be done in America."
"So that’s not really a smart idea," Rockefeller continued. "In fact, it’s a very dangerous idea, and I’m not even sure the coal miners in West Virginia are aware that this is what is waiting if this bill passes."
Rockefeller made his comments on a conference call with reporters which was sponsored by the liberal Campaign for America's Future.
Rockefeller, who sits on the Finance Committee, said that he cannot support the Baucus bill unless it receives major improvements during the amendment process.
Baucus, the Finance chair, is scheduled to discuss his "chairman's mark" with reporters on Capitol Hill at 12 noon on Wednesday.
ABC News' Brittany Crockett contributed to this report.
September 16, 2009 | Permalink | Share | User Comments (607)
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Just figured that out out, did ya Jay?
Posted by: Calirangr | Sep 16, 2009 8:19:48 AM
actually individuals with crummy insurance will pay more!!! too. a simple crummy individual policy costs $15000 per year per person and would be taxed. tax on a junk policy. not a cadillac policy. tax should be on policies that have high coverage, not just by cost
Posted by: BarryS | Sep 16, 2009 8:20:01 AM
"The tax contemplated by Baucus is also a big revenue raiser. It is expected to raise $200 billion"
These incompetents in D.C. always over estimate how much tax revenue a certain new tax will bring in. I would guess that it will be a much lower amount, especially when it does what it intends to in reducing the number of these high cost insurance plans. Where do they get money to fund whatever they were going to with the $200 billion, once they accomplish getting rid of the majority of these high cost plans?
Posted by: Jason | Sep 16, 2009 8:20:24 AM
The government needs to cease and desist on any health plan. There is too much corruption in our government with all their other plans. Can we still trust the government???
Posted by: Allen Harkins | Sep 16, 2009 8:21:04 AM
Who in their right mind would ever think this is a free lunch?
Posted by: clarify | Sep 16, 2009 8:23:11 AM
"It's not every day that you hear a Democratic senator charge that a fellow Democrat"
Right, It's happens more than most mite think, It just doesn't get reported by the MSM as it is not there interest. The MSM are not journalists there the advertising arm of the the DNC.
Posted by: who cares | Sep 16, 2009 8:23:38 AM
Just say NO!
Posted by: Jim Brown | Sep 16, 2009 8:23:52 AM
"I did not have sex with that women"
Posted by: robs4 | Sep 16, 2009 8:24:29 AM
This is classic. The Democrate who is worried about his piece of the pie. The easy fix congressman is to add something into the bill to exclude the democrats from this tax. I am sure the rest of the country will not mind.... we are used to it.
Posted by: TaxedEnough | Sep 16, 2009 8:25:17 AM
Dems and Reps don't support this plan and the President keeps saying - Hurry up, we need to pass something. Our government is a mess.
Since this is an ABC column - DID YOU HEAR THE ONE ABOUT ACORN . . .
Posted by: DiogenesofSC | Sep 16, 2009 8:27:52 AM
And, therein lies the problem. Obama is trying to push another extreamly poorly crafted piece of Legislation down the throats of the American Taxpayer.
The voters have learned all about Obama's penchant of hiding "loopholes" in his proposed Legislation from the Banking Bailout, the Stimulus Bill, and the Auto Company Buyout.
Basically, the Democratic controlled Congress has acquiesed to Obama's voter pay-off scheme by foisting the sloppiest piece of Legislation in the history of the Republic, figuring the American Taxpayer is asleep.
Wake up, America!!! It's not whats "IN" the Bill. It's the "exclusionary language" to close those "loopholes" that has been omitted that gives the Federal Dot.Gov Carte Blanche over the future of your Healthcare.
Posted by: ETEE | Sep 16, 2009 8:28:46 AM
Remember obama's promise of no new taxes on the middle class when you vote in 2010 and 2012!
Posted by: Robert | Sep 16, 2009 8:31:35 AM
My GOD! He sounds like a...dare I say it?....gasp! REPUBLICAN! He actually looked beyond the Utopian dream into reality? Oh, the Humanity!
Posted by: Polar Bears & BBQ sauce | Sep 16, 2009 8:34:49 AM
I will take ABC seriously when they learn from the amateurs at biggovernment.com what investigative journalism is.
The silence of the "mainstream" media on the ACORN scandal speaks volumes to how profoundly "in the tank" for Obama they are, to the point where they are acting like a de facto state run media.
I have been shocked and horrified at how these very real scandals have been ignored or white washed in the media. This was inconceivable when I was younger---the future looks horrifying until and unless the media snaps out of its spell and learns to do its job again.
Posted by: Bob C | Sep 16, 2009 8:36:51 AM
The Democrats cannot help themselves. Let them pass "healthcare reform" on their own and then let them experience the wrath of voters.
The best way to "fix" healthcare is to allow the purchase of policies across state lines, to implement tort reform, to make sure private options for catastrophic coverage are available, and to allow a tax deduction for the policies purchased by individuals.
Posted by: pat | Sep 16, 2009 8:38:43 AM
Wow.... a tax on the middle class.... you don't say...
Posted by: Vanessa | Sep 16, 2009 8:39:13 AM
The Democrats say we should have compassion and let the gov't insure those 46 Million Un-Insured.
Well, that's not compassion, that's highway robbery.
Besides, I have to balance my cheekbook every month. Why does the Gov't insist on running a deficit.
Posted by: Ratt | Sep 16, 2009 8:39:38 AM
Jay now realizes that his constituents will vote his butt out of office unless they get this care for free. Everyone, at least the uninformed and all ACORN workers always expected a free lunch. Now they find out what the free lunch will eventually cost.
And by the way, hurry up so nobody knows the level of future pain.
Posted by: chuck | Sep 16, 2009 8:41:07 AM
So, once again the Democrats find a way to make the "Public Option" the least expensive option (regardless of bureaucratic costs) once this tax is factored into the cost of employer-provided insurance. There won't even be an incentive to make the government insurance as cheap as possible. It only needs to be cheaper than what you have now, which means that the government can build in all kinds of extra costs.
And where would you go to find health insurance if your company didn't provide it? Individual policies are way overpriced compared to the pooled policies that comapnies get, and the Democrats are doing everything they can to eliminate the possibility of "co-ops", so again the "Public Option" would be your only choice.
Yes We Can (screw the American people)!
Posted by: Floyd Smoot | Sep 16, 2009 8:41:16 AM
Nothing matters - if unemployment in this country is at 10% or highter - no one will be in a position to afford anything. Taxes will have to go up on everyone - business down, sales down, government income down. This Administration feels when in debt - add more debt - more costly programs, more socialism. With over 300 million citizens in this country and bad dudes everywhere wanting to take us down - we need to think smart and remain strong.
These two critical issues are not being addressed by the politicians in Washington. So much yakking about health care reform - like worrying about what beverage to serve at a meal when there is no food to be had anywhere. Very serious situation - and now the yakker in chief will spend an entire weekend and beyond on TV shows.
For Obama it is vacation or speech - that is the extent of his work week.
Posted by: RAltiere | Sep 16, 2009 8:43:38 AM
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