The Costs and Taxes in the Senates Health Care Bill

The Costs and Taxes in the Senates Health Care Bill

Photo by: Brooke Lark / Unsplash

With the recent changes made to the health care bill, it is estimated that the new legislation will cost a whopping $ 871 billion over the next 10 years. The new health care plan will be paid for by $ 483 billion through cuts in spending and another $ 498 billion will be paid for through new revenue. The Congressional Budget Office claims that the new health care bill will reduce the budget deficit by $ 130 billion over a period of 10 years.

The legislation will be funded through the individual mandate tax. From 2014, anyone who does not have a qualified health insurance plan will have to pay an income surtax. This tax is expected to earn the federal government $ 15 billion. The surtax for 2014 is around 0.5 percent. However, in the next two years, it will increase to 1 percent and then to 2 percent the following year.

The federal government will also be levying tax on employers. Employers will 50 or employees will needlessly have to give health insurance to employees, or they will have to a tax of $ 750 per full time employee. This amount will be non-deductible.

In addition, there will be a 40 percent tax from 2013 on Cadillac health insurance plans. The Cadillac health insurance will have plans for individuals valued at $ 8,500, while it will be $ 23,000 for families. However, there will be some exceptions like the Longshoremen, who lobbied to have their union members removed from this new tax.

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Source by Kum Martin