The Real Cost of the Baucus Bill

From Michael Tanner at Cato:

The CBO scoring makes it clear that the Baucus bill’s reduction in future budget deficits comes not from controlling government spending or reducing health care costs, but because of a rapid escalation in tax revenues. The bill imposes a 40 percent excise tax on health-insurance plans that offer benefits in excess of $8,000 for an individual plan and $21,000 for a family plan. Insurers would almost certainly pass this tax on to consumers via higher premiums. As inflation pushes insurance premiums higher in coming years, more and more middle-class families would find themselves caught up in the tax.

In fact, overall, the tax increases in the bill are more than double the amount of deficit reduction. This isn’t a health care efficiency bill or a cost containment bill. It is a tax and spend bill, pure and simple.

40 percent.

Go check your policy. Does it offer more than $8,000 in benefits? Get health care through your employer? Then bronze the policy, cuz when your company’s premiums jump by 40%, you won’t have that package of benefits any more.

A 40% tax hike. Incredible.

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