Although only high-income households will pay the new Medicare levies, billions of dollars in other new taxes will be paid by individuals earning less than $200,000 per year and married couples earning less than $250,000. This violate a campaign pledge by President Obama, which he has repeated over and over this year in town hall meetings across the country.
Portions of a multitude of new taxes totaling nearly $250 billion over 10 years would be paid, either directly or indirectly, by workers with incomes below those levels.
The reconciliation bill, which will be passed by the House later today and signed by the President, will raise money by taxing generous health-insurance policies.
The bill, which taxes so called "Cadillac plans" is expected to raise $32 billion during the 2018-19 period. This new tax heavily penalizes health-insurance plans costing more than $10,200 for individuals and $27,500 for families — imposing a 40% excise tax on the value above those amounts.
Many of these "Cadillac plans" are held by both union workers in the private sector and by federal, state and local government workers. Most families of both groups earn well below $250,000.
The excise tax will be directly paid by the insurance company, but economists of all persuasions say the costs will passed along to policyholders.