Posts Tagged ‘Tax Increase to Pay for Health Reform’

Sunday, November 1st, 2009 at 2:09pm

Raising Taxes to Pay for Government-Run Health Care

Posted by Tom Skypek in Economy

Greg Mankiw wrote a great piece in The New York Times yesterday on the likely tax implications of the current health care reform legislation.  It looks like tax hikes on the middle-class might be used to pay for the costly, health reform legislation. 

The bill that recently came out of the Senate Finance Committee illustrates the problem. Under the proposed legislation, Americans would have the opportunity to buy health insurance through government-run exchanges. Depending on a family’s income, premiums and cost-sharing expenses, like co-payments and deductibles, would be subsidized to make health care more affordable.

A family of four with an income, say, of $54,000 would pay $9,900 for health care. That covers only about half the…

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