Tuesday, February 9, 2010

Tax rich, poll respondents say

WASHINGTON --- Americans don't want to shoulder the cost of President Obama's health care overhaul themselves. They think the rich should pay for it.

That's the finding from a new Associated Press poll, and it could be a boost for House Democrats, who have proposed taxing upper-income people to fund their sweeping remake of the U.S. medical system. Their plan, which the House approved this month, would extend coverage to millions of uninsured Americans.

The poll, conducted by Stanford University with the nonpartisan Robert Wood Johnson Foundation, found survey participants sour on other ways of paying for the health overhaul.

The options they don't like include taxing insurers on the high-value coverage packages derided by Mr. Obama and Democrats. That tax approach, being weighed in the Senate, is one of the few proposals in any congressional legislation that analysts say would help reduce the nation's health expenditures.

Lawmakers also are looking at levying new taxes on insurance companies, drug companies and medical device makers. But the only approach that got majority support in the AP poll was a tax on upper-income Americans.

The House bill would impose a 5.4 percent income tax surcharge on individuals making more than $500,000 a year and households making more than $1 million.

The poll also tested views on a taxation scheme that was under consideration earlier, when the tax would have hit people making more than $250,000 a year. Even at that level the poll showed majority support, with 57 percent in favor and 36 percent opposed.

"You know, I mean, why not? If they have that much money, it should be taxed," said Mary Pat Rondthaler, 60, of Menlo Park, Calif. "It isn't the same way that the guy making $21,000 is."

Not everyone agreed.

"They earn their money. And they shouldn't have to pay for somebody else. It doesn't seem fair," said Emerson Wilkins, 62, of Powder Springs, Ga.

LONG-TERM CARE CONSIDERED

WASHINGTON --- Senate health care legislation expected this week is likely to include a new long-term care insurance program to help the elderly and the disabled avoid going into nursing homes, Democratic officials say.

Senate Majority Leader Harry Reid, D-Nev., is expected to incorporate the voluntary program in legislation to be unveiled as early as today, said the officials, who spoke on condition of anonymity because a final decision has not been made. The House included the program in its health care legislation.

Fiscal conservatives and government economists have questioned whether the program would be financially sustainable over the long run, and insurance companies are lobbying to strip it from the health care bill.

The approach Mr. Reid is considering would stipulate that premiums from the program could not be counted in offsetting the cost of the broader health care bill. Mr. Reid's office had no comment Tuesday.

Under the proposed program, people would pay a modest monthly premium during their working years. If they become disabled, they would get a cash benefit of at least $50 a day for certain expenses. The Congressional Budget Office estimated that the program would be fiscally solvent over a 75-year period with the income from premiums, and no taxpayer financing.

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