We Face Higher Taxes to Pay for Reform
The health care overhaul is estimated to cost $938 billion over 10 years [source: Congressional Budget Office]. That's a lot of money. For comparison, the International Space Station cost $150 billion to build. When the New Deal was rolled out, it cost $50 billion in taxpayer's money between 1933 and 1940 -- and that doesn't even count funding the State Department or the Postal Service [sources: Minkel, Powell]. So how will we pay for health care reform?
The majority of the tax burden falls on individuals who make more than $200,000 per year and married couples who make more than $250,000 per year in combined income. These high-earners pay an increased Medicare payroll tax on wages and investment income, and these taxes are expected to account for about 50 percent of new revenue raised during the first 10 years of health-care reform [source: Pear].