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Tuesday, July 7, 2009
Health. A Citizens for Tax Justice report says $760 billion could be raised over 10 years to fund healthcare reform by applying the Medicare tax to unearned income and by limiting itemized deductions for the wealthiest 1.3 percent of Americans. Imposing the Medicare tax on unearned income such as dividends and capital gains, and increasing that tax from 1.45 percent to 2.5 percent for couples making more than $200,000 a year would produce $500 billion over 10 years, the report estimates. To protect senior citizens, the study proposes that $50,000 of investment income be exempted for singles and up to $100,000 for married couples. The report endorses President Obama's plan to limit itemized deductions, which it says could raise $260 billion over 10 years. The study tried to combat complaints that the proposals will hurt wealthy states by noting the hardest-hit state would be Connecticut, where 2.5 percent of taxpayers would be affected. In large states like California and New York, 1.4 percent and 1.2 percent of taxpayers would be hit, it said. Alan Charney of USAction said the group will use the report to fuel grassroots campaigns in the states to gain support for the measures.