The House Democrats laid out their 1018 pages of plans yesterday for the new health care reform bill. Here are some highlights:
An impossible burden on small businesses:
The plan dictates an 8% payroll tax penalty will be applied to businesses who fail to provide their employees with health insurance options. The penalty would extend to any business that has a payroll exceeding $250,000 annually. Considering that the average small business employing 5-9 workers has a payroll typically exceeding $350,000/year, such a proposal ensures that small businesses would be the hardest hit.
Why is a measure that will make it more difficult for businesses to hire more workers being proposed when the country is experiencing the highest levels of unemployment in decades?
Taxes, Taxes, Taxes:
Households earning as much as $350,000 would be hit with a surtax of up to 2%. These rates are
subject to increase above 3% if the government does not achieve target health-cost savings. Never mind that the wealthy are subsidizing the cost burden of an entire national health care system. Certainly – no one expects the income threshold to remain fixed either…
If you thought you would be given the option to opt out, think again. A provision is included for
a 2.5% penalty tax on individuals who decline affordable health insurance.
How much will it all cost? Although certain to exceed $1 trillion in the next 10 years, in the span of 1018 pages no one bothered to include any total cost projections.