As Congress continues to forge ahead with healthcare reform, House Democrats as well as the Senate Health, Education, Labor, and Pension Committee (HELP) introduced in mid-July legislation putting forth their versions of how healthcare reform should take shape. Both the House and Senate legislation would likely raise taxes for many clients of advisors.
House Democrats joined Rep. Charles Rangel (D-New York), chairman of the House Ways and Means Committee, as they issued on July 14 a revised health reform bill, America’s Affordable Health Choices Act of 2009. The revised version includes Medicare and Medicaid reforms; health insurance exchanges in a local service area, which includes a public plan option; provisions to promote preventative and wellness services; and measures to improve efforts to combat fraud, waste, and abuse in the healthcare system.
For advisors, a key concern would be a proposed 5.4% income tax surtax on individuals and families with annual gross incomes exceeding $1 million. Those with incomes between $500,000 and $1 million would be hit with a 1.5% surtax, and those making between $350,000 and $500,000 would be charged a 1% surtax.