Michael Cannon of the Cato Institute has stepped up and is explaining the taxation that is coming down the line in the form of the Baucus Bill:
Still curious about the truth?
Let’s start with the price tag. According to the report just released by the Congressional Budget Office, the bill will cost roughly $829 billion over the next 10 years. And, significantly, it is even projected to reduce the budget deficit over 10 years by $81 billion. Of course, both those numbers are misleading.
The $829 billion cost is for the next 10 years, 2010-2019, but the most expensive provisions of the bill don’t take effect until July of 2013. The cost over the bill’s first 10 years of actual operation is closer to $1.3 trillion.
In addition, the bill assumes that Congress will implement a 21% reduction in Medicare payments that is already scheduled under current law. The only problem is that Congress has been supposed to make those reductions since 2003 — and never has. There is no reason to believe it will do so this time either.
Most importantly, the bill does not achieve its deficit reduction by controlling spending or reducing health care costs. In fact, by the end of the 10-year budget window, the cost of the program is expected to be growing at 8% per year. But revenue from the bill’s new taxes would be growing between 10% and 15% per year.
In particular, the bill imposes a 40% excise tax on health insurance plans that offer benefits in excess of $8,000 for an individual plan and $21,000 for a family plan. Insurers would almost certainly pass this tax on to consumers via higher premiums. (emphasis mine)
As inflation pushed insurance premiums higher in coming years, more and more middle-class families would find themselves caught up in the tax — providing the government with more revenue.
The overall tax increases in the bill are more than double the amount of deficit reduction. This isn’t a health care efficiency bill or a cost-containment bill. It is a tax-and-spend bill, pure and simple. (emphasis mine)
With all this, the bill still leaves 25 million people uninsured.
Make sure to go over to the Cato Institute and read the whole article.
Sen. Charles Grassley’s comments with Neil Cavuto about this bill going left.