Senate Bill Slams Middle Class

Here is a summary of the the taxation in the senate health care bill. Here is an excerpt from the report:

17.8 million individuals, families, and single parents with incomes under $200K will be net financial winners (11% of all tax returns under $200K):

* [Of] that 17.8 million total, 13.2 million of them will benefit from the government subsidy for health insurance, net of any premium increases.
* The other 4.6 million of them will also benefit, netting out their premium reduction with the higher taxes they will pay. These people in general will not get a health insurance subsidy.

68.4 million individuals, families, and single parents with incomes under $200K will be net financial losers (41% of all tax returns under $200K):

* In general these people are not eligible for premium subsidies, so the effects of he Reid bill on them are direct premium effects and/or tax increases.
* Within this group, here are some representative averages, taking into account premium changes, tax subsidies for premium purchase, and tax increases:

* Within this population of 68.4 million net losers, an average individual working for a small business who gets health insurance through the small group market will be worse off, even if his income is below $10K per year:
o Income of 0 – $10K: He pays $31 more (per year).
o Income of $10K – $20K: He pays $99 more.
o Income of $20K – $30K: He pays $202 more.
o Income of $30K – $40K: He pays $325 more.
o Income of $40K – $50K: He pays $377 more.
o Income of $50K – $75K: He pays $576 more.
o Income of $75K – $100K: He pays $681 more.
o Income of $100K – $200K: He pays $726 more.
* If this individual works for a large employer buying insurance in the large group market, the bill helps him if his income is <$20K, and hurts him if his income is >$20K:
o Income of 0 – $10K: He pays $135 less.
o Income of $10K – $20K: He pays $67 less.
o Income of $20K – $30K: He pays $36 more.
o Income of $30K – $40K: He pays $159 more.
o Income of $40K – $50K: He pays $211 more.
o Income of $50K – $75K: He pays $410 more.
o Income of $75K – $100K: He pays $515 more.
o Income of $100K – $200K: He pays $561 more.

For an average family among the 68.4 million losers getting insurance through the small group market (including most small business employees), they are on average better off if their family income is <$20K, and worse off if their income is >$20K. If they get insurance through a large employer, the breakpoint is $30K.

For an average single parent among the 68.4 million losers, he or she will be better off if income is <$20K, and worse off if income is >$20K, whether he or she gets insurance in the small group or large group markets.
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So in other words, the middle class will pay for most of this in a hammering new set of taxes.