Senate Approves Unpopular Health Care Reform Bill, Tax Increases
Dec. 24, 2009 – With its first Christmas Eve vote in more than a century, U.S. Senate Democrats at 7 a.m. today voted strictly along party lines to approve their version of national health care reform along with some 17 tax increases on the middle class and others despite public opinion polls showing a majority of Americans oppose reform efforts.
The Senate voted 60-39 to approve the health care reform measure with 58 Democrats and two independent Senators voting in favor and 39 Republicans voting against. Republican Senator Jim Bunning of Kentucky was absent.
The measure requires all American citizens to purchase health insurance and creates regional health insurance exchanges where individuals can shop for health insurance coverage tailored to more specific needs. People earning too little to afford health insurance would receive federal subsidies to purchase coverage.
Some 17 new taxes have been proposed to pay for the estimated $849 billion cost of initiating the Senate plan over a 10-year period.
Among taxes proposed to pay for the Senate’s version of national health care reform is a “marriage penalty” levied on “families” earning at least $250,000 per year. Because the tax on individuals isn’t levied until their annual income levels reach at least $200,000 while married couples would be taxed on dual incomes of $250,000 or more, opponents have dubbed the proposed tax a “marriage penalty.” The “marriage penalty” would not be assessed unless both spouses earn at least $150,000 per year, but an unmarried couple living together and earning the same amount would not be taxed until their individual incomes reach at least $200,000 annually.
Other proposed taxes include levying a 40 percent tax on individuals with “generous” health care plans. The Senate plan also would increase the Medicare payroll tax on high-income employees.
Officials representing two labor unions, the A.F.L.-C.I.O. and the Service Employees International Union (SEIU), last week announced they do not support the Senate health care plan and instead favor the version approved in the House of Representatives, which includes a public health care option. Union officials said they will continue demanding a public health insurance option in the Senate version before endorsing the plan.
Several recent public opinion polls also indicate a majority of those surveyed oppose the reform measures. A poll conducted from Dec. 15 – Dec. 20 by Quinnipiac indicates 53 percent oppose reform efforts versus only 36 percent supporting. The most recent polling by CNN shows 56 percent opposed and 42 percent in favor, and Rasmussen shows 55 percent opposed versus 41 percent supporting health care reform efforts.
Because the Senate’s version of health care reform differs greatly from the version approved by the House of Representatives, a conference committee comprised of members of both chambers will have to work out a compromise plan. President Barack Obama has said he wants to sign a final bill before delivering the President’s annual State of the Union Address in January.
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