President Obama, Universal Health Care and Weary Upper Income Tax Payers
Universal health care has always been one of the issues closest to my voting heart. I believe every citizen should have access to at least a minimum level of coverage, that it should be portable and that it should be affordable. It was was one of the many reasons I was an ardent support of Senator - now Secretary of State - Clinton in her pursuit of the Presidency. It was also one of my major gripes with President Obama's programs during his first 100 days. I felt that addressing health care costs would do so much more for burdened Americans that giving them $13 a week in their pay envelopes. Today he adressed it but (and as my friend say's with me there's always a but)...
hello, there, just call me Strictly Anecdotal Van Winkle, slowly waking up, still wiping the sleep from my eyes
and now back to that but...
From the scant details thus far available, a significant portion of the $600+ billion to be set aside for this worthy initiative (although even Admin reps admit the cost will be sloser to a trillion) will come from tightening the percentage of deductions allowed for those in the 33% and 35% income tax brackets Now I've never had a problem with the truly financially blessed paying for health care for those not so financially blessed. In the long run having everyone insured is a financially beneficial for both individuals and businesses. However, the 33% rate begins at $164,550 for a single person and $200,00 for married filing jointly tax payers. While you'll get no argument from me that a single person making $160+ is extremely well off (although you might get an argument from him or her), a couple making $200,000 with children in college and a mortgage might not consider themselves to be so well off that the health care problem should be solved (at least partially) on their backs.
Now I'm not here to crunch any numbers or make the case - which I'm sure can be made - for the moral imperative of providing health care for all. I'm here to point out the perception that many upper income tax payers are going to have of this particular addition to their tax burdens at this particular time. It is also more than a little disingenuous to say that this Administration does not plan to raise taxes on those who make less than $250,000 and then to tighten deductibility. That being said, when I had money I was always proud of the fact that I didn't grouse about taxes and if I had money again I think I would take the same pride in being able to lend a hand to those less fortunate. Having written that
if you're part of a couple whose combined income is $200,000 and each of your 401k(s) has been cut in half and the equity in your home has fallen below the water line and you have kids in college then you may not feel wealthy this year. Add to that the facts that you probably don't qualify for any breaks under the Homeowners Affordability and Stability Intiative and that Speaker Pelosi keeps talking about bringing that bankruptcy mortgage principal cram down to the floor and the President keeps calling you out for being irresponsible and somehow at fault for everything short of Jimmy Hoffa's disappearance even though you've never missed a loan payment and have always given generously to charitable causes when asked, well then...
you might not take kindly to the thought of having the deductibility of your mortgage interest and charitable contributions trimmed.
All of which is not to say that universal health care isn't one of the issues closes to my voting heart.





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