The $1.05 trillion House health care reform legislation unveiled by Speaker Nancy Pelosi last week and expected to be voted on Saturday by the House of Representatives is financed primarily through taxes on individuals and businesses as well as cuts to Medicare, according to the non-partisan Tax Foundation.
"The non-partisan Tax Foundation confirms what fiscal conservatives have known for some time -- the Speaker's health care bill is financed through individual and business tax increases and cuts in Medicare funding," said Lance. "The bill if signed into law will be harmful to New Jersey's taxpayers, seniors and businesses."
According to the Tax Foundation analysis for the legislation, the health care bill contains the following financing:
$472.8 billion, or 39 percent of the bill's cost comes from cuts to Medicare;
$460.5 billion, or 38 percent of the bill's cost comes from a 5.4 percent surtax on high-income individuals;
$135 billion, or 11 percent of the legislation's financing comes from penalty on employers that don't provide coverage;
$55 billion (5 percent) comes from a tax on medical devices and other health care revenue;
$50.4 billion (4 percent) from corporate income tax increases and other non-health revenues; and
$33 billion (3 percent) comes from a penalty on uninsured individuals.
The Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.