Excise Tax On Health Care
The aim of an excise tax on health care is to restructure the health care industries. Its basic idea is to help in financing the health care. The best thing about this plan is that it estimates a round about $150 billion in approximately 10 years. The plan says that the tax would be given by the employers, insurance companies and the people who belong to higher income group category. A proposal like this intends to twist the bob of the cost pendulum in such a manner that in future it would help in bringing stability.
When people actually see the implications of this plan it seems to be very less impressive because it is quite evident from the last one month analysis carried out by the staff of Congress Joint Committee on taxation for Rep. Joe Courtney that the 80 percent of the amount that this kind of tax on health care collects actually is being coming from the people who are paying considerably higher income, social security and Medicare taxes and not by the heart less employers or the insurance companies that had been projected by the plan. The plan also fails in one of its aspect that the major chunk of money is in fact entering from the individuals whose income stretches from $100,000 to $200,000.
It also reveals an exclusive fact that rest 20 percent which is roughly $26 billion of the estimated $150 billion would be coming from payment of the excise tax itself. This plan of excise tax on health care is discriminatory in nature and will be responsible in future for affecting the people, who are more expensive for insurance companies because of their old age or being residing in an expensive locality.
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