Panel Delivers Revenue Estimates for Plans To Finance Health Reform
Taxing a portion of employer-sponsored health care benefits would generate $418.5 billion in new revenue over the next 10 years, according to a Joint Committee on Taxation estimate included in a letter sent last week to the Senate Finance Committee, CQ Today reports.
JCT also provided estimates for other proposals to offset the cost of health care reform:
- Capping the exclusion for individuals whose adjusted gross income is above $100,000 annually and couples who adjusted gross income is above $200,000 at the level of the federal employees plan would generate $162 billion in new revenue;
- Allowing half of premiums to be untaxed would generate $1.2 trillion in new revenue;
- Repealing the itemized deduction for medical expenses above 7.5% of adjusted gross income would generate $180.7 billion in new revenue;
- Eliminating the exclusion for contributions to flexible spending arrangements and health reimbursement accounts would generate $68.6 billion in new revenue;
- Imposing a federal excise tax of three cents per 12 ounces of sugary beverages would generate $51.6 billion in new revenue; and
- A uniform excise tax on alcohol of $16 per proof gallon would generate $61.5 billion in new revenue (Rubin, CQ Today, 6/8).
According to a recent study by the Center on Budget and Policy Priorities, universal health coverage is unlikely to occur without some sort of cap on the employer exclusion (Simmons, HealthLeaders Media, 6/8).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.