"Faced with a $320 billion hole in his reform plan," Senate Finance Committee Chairman Max Baucus (D-Mont.) yesterday presented members with more than a dozen ways to pay for the health reform legislation, according to Politico. Here are seven, from the Politico article:
- Broaden the 1.45-percent Medicare tax on earned income to "passive income," which could include money from capital gains, rental properties and businesses that do not require direct participation. This could raise $100 billion.
- Levy a five-percent surtax on individuals who earn more than $500,000 and couples that make $1 million.
- Tax health benefits at a higher level than had been considered. Two scenarios are in play. Taxing plans worth more than $20,300 for a family and $8,300 for an individual could raise $240 billion. Increasing the cut-off to plans worth more than $25,000 would bring $90 billion.
