House Democrats Urge Pelosi To Reject Proposed Excise Tax

By Meagan Wiseley – University of New Mexico/Talk Radio News Service

Rep. Joe Courtney (D-Conn.) presented a letter to Speaker Nancy Pelosi today urging her to reject any excise tax on high-cost benefit health care plans. The letter comes in response to the Senate Finance Committee’s proposal for a 40 percent tax on “cadillac plans,” or plans that feature expensive premiums.

“The proposed tax on benefits undermines a basic principle of the reform proposals – to build on the employer-based heath care system,” said Courtney.

Courtney said he hopes the letter will send a clear signal to House leadership that an excise tax on heath plans will be an “additional and substantial tax burden” on working class families and middle class individuals.

Beyond the “cadillac” plans, Rep. Pete Stark (D-Calif.) said that he believes this tax will impact a larger number of individuals around the country who have higher coverage plans because they live in “high-cost regions” or have “high-risk jobs.”

Rather than an excise tax, Stark suggested a surcharge in the House health reform bill which would raise taxes on those making $500,000 a year or more. “Over 99 percent of earners would not be affected by the surcharge,” said Stark.

In addition to Reps. Courtney and Stark, 156 other members of the House Democratic Caucus have cosigned the letter.