Insurance Tax Being Considered to Cut Cost of Healthcare

Background: President Obama's healthcare plan is estimated to cost about $1.1 trillion over ten years, but Obama wants this number to be dropped to $900 billion. Obviously that drop has to come from somewhere, and taxes are seeming to be the 'somewhere' of choice.

Summary: On Friday, September 25th, Speaker of the House Nancy Pelosi announced that an excise tax on insurance plans is "under consideration" in order to lower the cost of the healthcare plan. Originally a tax on families making over $350,000 a year, with the graduated rate increasing as the level of income rises. However, some Democrats in the House argued that small businesses would be unfairly affected by this tax, so the tax will now apply to those making $1 million or more annually.

Analysis: I think that the drop in the cost of healthcare is not going to happen unless taxes are raised. Obviously higher taxes are associated with Democrat ideals, but this tax may hit hard on middle-class families if enough money is not found to cover the healthcare plan's costs. No one enjoys higher taxes, and Obama's plan has already drawn much resistance for its fairly 'socialistic' government provided healthcare. Overall, I do not expect this tax to make the majority of the public happy, but do the benefits of healthcare for all outweigh the costs along the way?

Editorial: I don't see this tax affecting me personally, but I know it will my parents. I think a lot of people are in the same boat right now with kids going to college, mortgages to pay, etc, and the additional burden of this tax might topple some families over. I think the healthcare is potentially a fantastic idea, but at this moment in time, with the economic depression almost everyone is feeling, more taxes equals an extra kick in the backside.