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Reply #111: Health Care Excise Tax = A Big Middle Class Tax Increase [View All]

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IndianaGreen Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jan-07-10 04:56 PM
Response to Reply #2
111. Health Care Excise Tax = A Big Middle Class Tax Increase
Impact of the Excise Tax on the Middle Class

Health Care Excise Tax = A Big Middle Class Tax Increase

Revised December 17, 2009

JCT data shows excise tax in the Senate bill would strike at the heart of the middle class

Health care legislation under consideration in the U.S. Senate would raise $149 billion over ten years by imposing a 40 percent excise tax above certain thresholds on insurance company health plans and self-insured plans offered by companies to their workers. This tax would have a dramatic effect on those plans forcing steep reductions in benefits, shifting of costs to workers and a significant increase in taxes on millions of middle-class families.

Contrary to claims by proponents that it will affect only Cadillac health plans, like those enjoyed by Goldman Sachs executives, according to Joint Committee on Taxation(i) data the excise tax will:

Affect 19 percent of workers with employer-sponsored health coverage in 2016.
Affect nearly 25 million households(ii) in 2019, including one-fifth of middle-class households making between $50,000 and $75,000.
Affect about 25 percent of health plans by 2019.
Cost affected households an additional $7,500 in taxes on average between 2013 and 2019, or more than $1,000 a year.
In 2019, cost affected taxpayers who are millionaires an extra $2,600 in taxes and those making between $50,000 to $75,000 an extra $1,100 in taxes, but the wealthy taxpayers income will be at least 13 to 20 times greater.
Be a tax increase of 0.1 percent of income for those households affected that make more than $1 million a year and be a tax increase of 1.4 percent for those households affected that make $50,000 to $75,000.

The JCT assumes that 82.5 percent of the revenue raised from the tax will be generated by increased wages to make up for health benefits cuts and increased cost sharing. However, most employers say they will not increase workers wages in response:

Only 9 percent of human resource executives in a recent Towers-Perrin survey said if health care reform reduced their benefit costs would they increase salary or direct compensation; 78 percent said they would retain the savings in the business as profit.
Just 16 percent of health plan sponsors in a recent Mercer survey said they would convert any health care cost savings into higher pay for their workers.


(i) Figures 1 to 5 in this report were prepared by CWA based on data from the Joint Committee on Taxation in a letter to Rep. Joe Courtney (D-Conn.), from Thomas A. Barthold, Chief of Staff, Dec. 8, 2009.

(ii) In this report households refers to individuals and families paying taxes. Based on JCT data showing that 24.6 million tax units would be affected by the excise tax in 2019, Citizens for Tax Justice estimates that 12.6 million are married couples, 3 million are single parents and 9.1 million are childless single people for a total of 58 million men, women and children affected.
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  -Damning Video compiles Obama's broken promises on Cadillac, Mandates. freddie mertz  Jan-07-10 12:17 PM   #0 
  - Why not say "I just hate the prez."  cliffordu   Jan-07-10 12:21 PM   #1 
  - Deleted sub-thread  Name removed   Jan-07-10 12:23 PM   #3 
  - Deleted sub-thread  Name removed   Jan-07-10 12:25 PM   #6 
  - One reason: I don't hate him, I just want him to live up to his promises.  freddie mertz   Jan-07-10 12:29 PM   #10 
  - You're right. Nothing changed. He just bailed on his promises, out of the blue.  cliffordu   Jan-07-10 12:31 PM   #14 
  - Yes, he did. He went behind closed doors with Billy Tauzin and Karen Ignagni  laughingliberal   Jan-07-10 12:38 PM   #21 
  - I don't understand how you keep from  cliffordu   Jan-07-10 12:39 PM   #23 
     - Don't need your sympathy.Don't need to cut my own throat. White House doing a fine job of cutting  laughingliberal   Jan-07-10 12:44 PM   #32 
        - I somehow doubt your take on this, but defend your right to  cliffordu   Jan-07-10 07:20 PM   #138 
           - Doubt all you want  laughingliberal   Jan-08-10 09:43 AM   #174 
              - ...Conveniently leaving out the  cliffordu   Jan-08-10 11:37 AM   #175 
  - He bailed on his excise tax promise because he doesn't want to inconvenience the rich  Hello_Kitty   Jan-07-10 12:38 PM   #22 
  - Bingo! While we're on the subject of broken promises...  laughingliberal   Jan-07-10 12:46 PM   #34 
     - I'm thinking that  TicketyBoo   Jan-07-10 02:27 PM   #67 
        - Boo!  inna   Jan-07-10 03:18 PM   #91 
        - Seems to be  TicketyBoo   Jan-07-10 07:11 PM   #131 
        - What a piece of work you are.nt.  freddie mertz   Jan-07-10 04:42 PM   #107 
        - Why, thank you.  TicketyBoo   Jan-07-10 07:11 PM   #132 
           - I was not complimenting you.  freddie mertz   Jan-07-10 08:55 PM   #149 
        - I laugh all the time mostly at how dizzy the cheerleaders must be getting as they try to spin  laughingliberal   Jan-07-10 05:42 PM   #115 
           - How nice for you.  TicketyBoo   Jan-07-10 07:12 PM   #133 
  - It's beyond me how you can be for GLBT rights and still so blindly support  IRemember   Jan-07-10 03:31 PM   #97 
     - it's called putting personality over principles.  FLAprogressive   Jan-07-10 04:32 PM   #105 
        - No it ain't.  cliffordu   Jan-07-10 07:14 PM   #135 
           - you are condescending in almost every post..why are you here?  xiamiam   Jan-08-10 08:06 AM   #171 
              - Your assesment of why I'm here and what is constructive  cliffordu   Jan-08-10 11:39 AM   #176 
  - Not unreasonable that all. Thanks for posting. KnR. And it doesn't have to BE.  chimpymustgo   Jan-07-10 03:29 PM   #94 
  - It would be nice if he didn't lie to our faces, too -- like on campaigning on the PO.  Zhade   Jan-07-10 11:51 PM   #155 
  - Typical tactic of someone who can't refute facts or discuss the subject at hand  debbierlus   Jan-07-10 12:43 PM   #30 
  - Deleted sub-thread  Name removed   Jan-07-10 02:36 PM   #71 
  - "Why do you hate America?"  Romulox   Jan-07-10 02:40 PM   #74 
  - Exactly. Same mentality.  inna   Jan-07-10 03:16 PM   #88 
     - now you've done it.  cliffordu   Jan-08-10 12:59 AM   #167 
  - What the fuck?  spoony   Jan-07-10 02:40 PM   #75 
  - So, since this is a discussion board, why don't you tell  sabrina 1   Jan-07-10 02:53 PM   #82 
  - I predict you'll receive no response on this.  jgraz   Jan-07-10 03:13 PM   #86 
  - It looks like you predicted accurately ~  sabrina 1   Jan-07-10 06:27 PM   #124 
  - bored wit the haters.  cliffordu   Jan-07-10 07:08 PM   #129 
     - I should have been more precise in my language  jgraz   Jan-07-10 07:40 PM   #142 
     - And once again, you are right ~ lol!I  sabrina 1   Jan-07-10 08:14 PM   #147 
     - You mean more coherent than the critics so far??  cliffordu   Jan-07-10 08:15 PM   #148 
     - Unable to back up your arguments, you mean.  Zhade   Jan-07-10 11:59 PM   #157 
  - I cooked dinner and did the dishes.....After working a bit.  cliffordu   Jan-07-10 07:29 PM   #141 
  - Yeah, that's been hard. Republican acquaintances pointing out to me daily the broken promises  laughingliberal   Jan-07-10 07:14 PM   #134 
  - The rotten underpinnings of the economy weren't fully known when  cliffordu   Jan-07-10 07:27 PM   #140 
  - Zactly!  NYC_SKP   Jan-07-10 04:10 PM   #103 
  - Howdy!!!  cliffordu   Jan-07-10 07:10 PM   #130 
     - Yesterday Mike Savage Started his Show With "Obama, Lied, Obama the Liar".  NYC_SKP   Jan-07-10 07:17 PM   #136 
        - Yep the fair weather Dems are taking over the asylum.  cliffordu   Jan-07-10 07:18 PM   #137 
        - I love it when the apologists treat a political party like a sports team.  jgraz   Jan-07-10 10:05 PM   #152 
           - Thanks, no, I like it here.  cliffordu   Jan-07-10 11:43 PM   #153 
        - And that should rightly alarm you.  freddie mertz   Jan-08-10 09:33 AM   #172 
  - Why not just say "He lied to us" - because he did.  Bluebear   Jan-07-10 04:58 PM   #114 
     - Or you could read 164  cliffordu   Jan-07-10 11:45 PM   #154 
  - The Obama bashing is so juvenile around here  Don Caballero   Jan-07-10 12:22 PM   #2 
  - don't ever follow your party's leader blindly...  kerrywins   Jan-07-10 12:25 PM   #5 
  - Who introduced hate into the discussion?  freddie mertz   Jan-07-10 12:27 PM   #7 
  - So you have given up on Obama and the administration...  HipChick   Jan-07-10 12:32 PM   #15 
     - I think HE could have done better and SHOULD have tried harder to keep his word.  freddie mertz   Jan-07-10 12:36 PM   #18 
        - It's not unreasonable to expect a politician to refrain from supporting that which he has condemned  JVS   Jan-07-10 12:37 PM   #20 
        - +1  laughingliberal   Jan-07-10 12:47 PM   #35 
        - +1  leftstreet   Jan-07-10 01:57 PM   #66 
        - You think Obama lacks integrity?  TicketyBoo   Jan-07-10 02:34 PM   #69 
           - You did NOT just say that..  leeroysphitz   Jan-07-10 06:48 PM   #127 
           - Oh my goddibygod. nt  Bluebear   Jan-07-10 09:40 PM   #151 
           - You don't think lying to our faces ("I didn't campaign on the PO") shows a lack of integrity?  Zhade   Jan-08-10 12:03 AM   #159 
              - well; one first have to think its a lie; and there is a fair number of people who do not consider it  Bodhi BloodWave   Jan-08-10 01:51 AM   #169 
                 - Too much video, not enough follow through.  freddie mertz   Jan-08-10 09:35 AM   #173 
        - is this the first time you voted? I don't expect to agree on everything he does  HipChick   Jan-07-10 12:48 PM   #37 
           - These reversals have been especially egregious, and have never been honestly addressed  freddie mertz   Jan-07-10 12:52 PM   #38 
  - As opposed to the unquestioning support no matter how far right he moves nt  laughingliberal   Jan-07-10 12:42 PM   #28 
  - You've been here a whopping 4 months --  Hell Hath No Fury   Jan-07-10 01:04 PM   #50 
  - Bravo and well said  TornadoTN   Jan-07-10 01:05 PM   #52 
  - pwned.  jgraz   Jan-07-10 05:53 PM   #117 
  - Agreed. n/t  TicketyBoo   Jan-07-10 02:28 PM   #68 
  - Yes, we just are all too STUPID to not understand his three-dimensional chess game.  ShortnFiery   Jan-07-10 03:15 PM   #87 
  - I thought it was an eleven-dimensional chess game  IndianaGreen   Jan-07-10 06:35 PM   #125 
  - big expert 4 months in arent you  Bluebear   Jan-07-10 03:30 PM   #96 
  - Health Care Excise Tax = A Big Middle Class Tax Increase  IndianaGreen   Jan-07-10 04:56 PM   #111 
  - His lying to us and breaking his promises are ever so much worse.  Zhade   Jan-08-10 12:01 AM   #158 
  - Pres. Obama also said the HCR negotiations would be open, public,  Common Sense Party   Jan-07-10 12:24 PM   #4 
  - A republican 'Whine' talking point n/t  HipChick   Jan-07-10 12:27 PM   #8 
     - Yes, but the president DID promise it, did he not?  Common Sense Party   Jan-07-10 12:29 PM   #11 
     - Yes, Obama has opened himself up to DEVASTATING attacks from the GOP  jgraz   Jan-07-10 02:41 PM   #76 
     - A fact that can unfortunately be used by republicans to attack obama.  Zhade   Jan-08-10 12:05 AM   #160 
  - He also said  FLyellowdog   Jan-07-10 12:27 PM   #9 
  - That's just silly.  freddie mertz   Jan-07-10 12:30 PM   #12 
  - But he did say it...on national tv. nt  FLyellowdog   Jan-07-10 12:39 PM   #24 
     - As noted below, we Don't KNOW that to be untrue.  freddie mertz   Jan-07-10 12:42 PM   #27 
  - How do you KNOW it's a lie? nt  Common Sense Party   Jan-07-10 12:30 PM   #13 
  - Indeed. For all I know, Santa DID visit the WH Xmas Eve!!  freddie mertz   Jan-07-10 12:34 PM   #16 
     - Ask Sasha. If she got something from Santa, case closed.  Common Sense Party   Jan-07-10 12:45 PM   #33 
        - I'll bet she did too! My nephew did! nt.  freddie mertz   Jan-07-10 12:48 PM   #36 
  - I heard that he was  HipChick   Jan-07-10 12:34 PM   #17 
     - Still not addressing the actual case. Why is that? nt.  freddie mertz   Jan-07-10 12:43 PM   #29 
        - Because they can't.  Zhade   Jan-08-10 12:06 AM   #161 
  - If you believe that guy is an Obama supporter, I gotta bridge to sell ya. This is breitbart rehash.  berni_mccoy   Jan-07-10 12:37 PM   #19 
  - Why should I give a fuck whether that guy is an Obama supporter? Obama speaks for himself there  JVS   Jan-07-10 12:40 PM   #26 
  - Which is the part they can't honestly deny.  freddie mertz   Jan-07-10 12:59 PM   #46 
  - The narration seems sincere enough, but more important, the video is true.  freddie mertz   Jan-07-10 12:44 PM   #31 
  - They won't answer you - they'll deflect and try to make it out like you aren't a "real" Dem  TornadoTN   Jan-07-10 12:52 PM   #39 
  - You're assuming it's true. It's been debunked, many many times.  berni_mccoy   Jan-07-10 12:54 PM   #40 
     - So it's been debunked, even though he actually said it?  TornadoTN   Jan-07-10 12:56 PM   #42 
     - Employees are NOT being taxed. It's the INSURANCE COMPANY.  berni_mccoy   Jan-07-10 01:02 PM   #48 
        - What will the effect be of that "tax"?  Common Sense Party   Jan-07-10 01:08 PM   #56 
        - Wanna buy a bridge?  freddie mertz   Jan-07-10 01:09 PM   #57 
        - Abd if you think the Insurance companies are going to eat that tax ---  Hell Hath No Fury   Jan-07-10 01:10 PM   #58 
        - I believe the costs will be passed on to the workers.  freddie mertz   Jan-07-10 01:56 PM   #65 
        - Well now I know why you have a bridge to sell.  spoony   Jan-07-10 02:43 PM   #78 
        - You're either uninformed or being deliberately obtuse.  Xithras   Jan-07-10 03:32 PM   #99 
        - An excise tax on a mandated purchase, no less.  glitch   Jan-07-10 06:21 PM   #120 
        - Sorry bud, but this is a major tax increase on the working class  IndianaGreen   Jan-07-10 04:53 PM   #110 
     - Obama's words and HC plan have been debunked? By whom? n/t  slipslidingaway   Jan-07-10 12:58 PM   #44 
     - The PREMISE of the argument is Bogus. The Tax Isn't On EMPLOYEES... see here  berni_mccoy   Jan-07-10 01:04 PM   #51 
        - Somehow they will pass the cost on. n/t  slipslidingaway   Jan-07-10 01:46 PM   #63 
        - The tax is on health care premiums, which is exactly what  sabrina 1   Jan-07-10 03:26 PM   #93 
     - Are you denying that the man said what he was recorded saying in that speech?  freddie mertz   Jan-07-10 12:58 PM   #45 
  - Fine, here's David Sirota saying essentially the same thing.  Edweird   Jan-07-10 01:14 PM   #59 
     - Under the bus with David Sirota where he will join  sabrina 1   Jan-07-10 04:47 PM   #109 
  - Barack Obama is exactly what he campaign against.  DisgustedInMN   Jan-07-10 12:39 PM   #25 
  - Ouch at the 4:55 mark ...  slipslidingaway   Jan-07-10 12:55 PM   #41 
  - Obama boosters: Watch that part and try to defend it. You can't.  jgraz   Jan-07-10 02:39 PM   #72 
     - Hard to defend - from enough is enough - to I did it too. :( n/t  slipslidingaway   Jan-07-10 04:44 PM   #108 
  - Candidate Obama made a very convincing argument against his own present policy...  freddie mertz   Jan-07-10 12:56 PM   #43 
  - Well I agree with you, but then again I'm a hater :) ...  slipslidingaway   Jan-07-10 01:02 PM   #47 
  - He sure did! People gave up raises for better health benefits. Labor is being screwed...  GodlessBiker   Jan-07-10 01:07 PM   #53 
  - Yes We Can!  mmonk   Jan-07-10 03:52 PM   #101 
  - Obama is obviously an "Obama Hater" for attacking Obama's policies.  Tierra_y_Libertad   Jan-07-10 01:03 PM   #49 
  - Bingo! Therein lies the tragic irony of our times.  freddie mertz   Jan-07-10 01:07 PM   #54 
  - DUzy!  glitch   Jan-07-10 06:23 PM   #121 
  - HAHAHAHAHAHA!!! Remember when The Daily Show did the b*s* versus b*s* video?  Zhade   Jan-08-10 12:10 AM   #162 
  - We democrats always turn on ourselves, down to an individual level even!  JVS   Jan-08-10 12:47 AM   #166 
  - Posting in the videos forum ...  slipslidingaway   Jan-07-10 01:08 PM   #55 
  - I put it up. Thanks for the Help. My first ever effort.  freddie mertz   Jan-07-10 01:15 PM   #60 
     - Gave it a rec and you're welcome :) n/t  slipslidingaway   Jan-07-10 01:47 PM   #64 
  - There is also video of him on the mandates  quinnox   Jan-07-10 01:17 PM   #61 
  - Yes, if you watch long enough, that comes too.  freddie mertz   Jan-07-10 01:23 PM   #62 
  - Deleted sub-thread  Name removed   Jan-07-10 02:42 PM   #77 
  - Not to mention numerous videos of him campaigning for a public option.  dgibby   Jan-07-10 03:31 PM   #98 
  - Isn't it the CEOs who he mentions who get this tax?  treestar   Jan-07-10 02:34 PM   #70 
  - He has flipped on almost every major element in HCR...  freddie mertz   Jan-07-10 02:39 PM   #73 
  - IMO he'd just have to veto it to keep his promises  treestar   Jan-07-10 03:16 PM   #89 
     - Pure pablum.  jgraz   Jan-07-10 05:51 PM   #116 
  - Thank you  TicketyBoo   Jan-07-10 02:44 PM   #79 
  - McCain's plan to tax health care was a HUGE motivator in getting people to vote for Obama.  jgraz   Jan-07-10 02:45 PM   #80 
  - It was a big motive for ME. I used it in my own arguments with Repubs and fence-sitters.  freddie mertz   Jan-07-10 02:47 PM   #81 
  - Can we add facts to the hyperbole, or is that against the rules here at DU?  FrenchieCat   Jan-07-10 02:56 PM   #83 
  - Fine. Those are the WH talking points.  freddie mertz   Jan-07-10 03:03 PM   #85 
  - What happens when insurance companies start shutting those plans down, because they're rendered  Brickbat   Jan-07-10 03:16 PM   #90 
  - It can be theorized different ways.....  FrenchieCat   Jan-07-10 03:23 PM   #92 
     - Having seen the way businesses tend to work,  Brickbat   Jan-07-10 03:40 PM   #100 
  - JCT data shows excise tax in the Senate bill would strike at the heart of the middle class  IndianaGreen   Jan-07-10 04:57 PM   #112 
     - thank you for posting this important Info!! eom  flyarm   Jan-08-10 12:29 AM   #164 
     - crucial information.  Bluebear   Jan-08-10 01:19 PM   #178 
  - Kick to find it later  hootinholler   Jan-07-10 02:58 PM   #84 
  - K&R.  David Zephyr   Jan-07-10 03:30 PM   #95 
  - And that is real danger here. We have to be able to trust the president.  freddie mertz   Jan-07-10 04:05 PM   #102 
  - He lost me irrevocably the day he lied about "not" campaigning on the PO.  Zhade   Jan-08-10 12:16 AM   #163 
     - Sad, isn't it?  David Zephyr   Jan-08-10 12:37 AM   #165 
  - Ugh. nt  BlueIris   Jan-07-10 04:10 PM   #104 
  - Ugh indeed. Kick!  freddie mertz   Jan-07-10 04:37 PM   #106 
  - Bottom line, he lied to us.  Bluebear   Jan-07-10 04:57 PM   #113 
  - Andrew Breitbart BULLSHIT!!!!!  devilgrrl   Jan-07-10 05:53 PM   #118 
  - Would it be better if it was David Sirota saying it?  Edweird   Jan-07-10 06:26 PM   #122 
  - Yes but not by much  devilgrrl   Jan-07-10 06:40 PM   #126 
  - Who is Andrew Breitbart and how do you know so much about him? n/t  Subdivisions   Jan-07-10 07:21 PM   #139 
  - He's the right wing fucktard behind all the ACORN fake videos etc...  devilgrrl   Jan-07-10 07:50 PM   #143 
  - Um, no. It's from Lee Stranahan, a loyal progressive.  jgraz   Jan-07-10 07:53 PM   #144 
     - Yeah, if you BOTHERED to read my response you have saw that I acknowledged my mistake!  devilgrrl   Jan-07-10 08:03 PM   #145 
        - So he had nothing to do with it then.  freddie mertz   Jan-07-10 08:59 PM   #150 
  - knr  Mari333   Jan-07-10 05:56 PM   #119 
  - What are you talkin' about  Libertas1776   Jan-07-10 06:26 PM   #123 
  - It seems that occasionally Obama the candidate was a liar.  WT Fuheck   Jan-07-10 06:52 PM   #128 
  - actually I did.  EmeraldCityGrl   Jan-07-10 08:11 PM   #146 
     - me too.  WT Fuheck   Jan-08-10 01:38 AM   #168 
  - Obama is a fraud!  democracy1st   Jan-07-10 11:56 PM   #156 
  - The GOP is going to run this and other videos all over the place in 2010.  freddie mertz   Jan-08-10 07:56 AM   #170 
  - yeah, they can run it  newspeak   Jan-08-10 12:11 PM   #177 
     - You miss the point.  freddie mertz   Jan-08-10 01:21 PM   #179 
  - We're locking this.  pinto   Jan-08-10 01:51 PM   #180 

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