Tuesday, January 12, 2010

I agree with the Unions

That’s an unusual statement but it happens to be true in terms of resolving the tax differences between the House and Senate Health Care bills.

The House version has an excise tax on individuals earning over $500,000 and households earning over $1,000,000 and I’ve made it no secret that I believe the tax rates at this level of income need to be raised.

The Senate version replaces this with a huge 40% tax on employer Health Care plans worth more than $8,500 per individual and $23,500 per family. This tax would hit a fairly large number of middle class families that have forgone wage increases for improved health care benefits. WTF? This is another example of moving the tax burden from the upper income classes to the middle class and is absolute crap which is exactly what the unions are saying.

I much prefer the House approach which places the tax burden on people that can actually afford it.