Conservative Democrats Balk At Higher Taxes For Wealthy To Pay For Health Insurance Reform

Conservative Democrats Balk At Higher Taxes For Wealthy To Pay For Health Insurance Reform in Politics and Legislation

Behind closed doors, Democrats in the U.S. House of Representatives called for higher taxes for the wealthy to pay for the looming health care and health insurance reform legislation.

But these higher taxes go a bit further than simply allowing the Bush tax cuts expire and move back to 39 percent. This increase would create a surtax for those who earn the highest echelons of income.

Households making $350,000 annually will be charged an extra tax, then those making $500,000 or more get hit with a graduated surtax, and finally Americans who make more than $1 million per year will have to pay the highest surtax.

In total, the tax would raise a whopping $540 billion over 10 years, just over half of what’s expected to be needed for reform, reported The New York Times.

House Democrats wanted a bill finished by today, but their more fiscally conservative colleagues came out against the graduated surtax.

Because of in-party balk at the provision, House leaders want to release the health insurance bill this Monday, wrote the Times article.

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