PI Original Adam Doster Friday July 24th, 2009, 9:32am

Roskam Misleads About The Health Care Surtax

The big topic in Washington these days is how best to pay for health
care reform. Aside from extending health insurance to every American
who wants it, the entire point of the Obama administration's reform
effort is to make the system more efficient. That way, Americans ...

The big topic in Washington these days is how best to pay for health care reform. Aside from extending health insurance to every American who wants it, the entire point of the Obama administration's reform effort is to make the system more efficient. That way, Americans can get better results for a cheaper price, protecting both our health and the nation's deficit in the long-term. But the government needs to come up with funding for the immediate changes until we can implement incentives to streamline care. And finding consensus on how to raise revenue is never an easy task for Congress.

One option being considered in the House is a surtax on the nation's wealthiest individuals. Beginning in 2011, households earning $350,000 and above would pay an additional 1 percent in taxes. The rate would increase by 1.5 percent for those making more than $500,000 and by 5.4 percent for those making more than $1 million. Combined with immediate spending reductions in Medicare and Medicaid, proponents project the entire $1 trillion price tag would be covered.

GOP Rep. Peter Roskam hates the idea. During an interview on WGN this morning, he went so far as to claim that Americans don't support the idea of a tax on the wealthiest Americans. Watch it:


ROSKAM: I think you hit the nail on the head in terms of the reluctance to put an increased burden on American job creators, right? We’ve lost 2 million jobs since the stimulus package passed. The unemployment rate in Illinois has now eclipsed 10 percent. The administration told us that nationally, we weren’t going to be passed 8 percent if the stimulus package passed, and that has all really underperformed. And there isn’t an interest now in putting more of a burden on Americans who are really struggling in an economy that seems to be slipping away.

Polling suggests otherwise. An ABC News/Washington Post poll taken late last month found that 60 percent support "raising income taxes on Americans with household incomes over 250 thousand dollars to help pay for health care reform?" One has to consider that raising the threshold another $100,000 would only increase that number. Only 37 percent opposed the idea.

And in what universe are families taking in over $350,000 in annual income "really struggling?" I'm not sure if Roskam has looked recently, but the the median annual household income was $50,233 in 2007. One would have to earn roughly seven times that figure to qualify for the tax hike.

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