House Dems want to tax the rich for health care

The L.A. Times reports:

Rangel said the new surtax would be graduated, starting with households at $350,000 and then rising at $500,000 and again at $1 million. Cuts to Medicare and Medicaid would raise about $500 billion, according to the Congressional Budget Office. Fees paid by companies who don't provide insurance to their employees would push the amount of the bill even higher.

"Instead of putting pieces of different revenue raisers together the best we can do is a graduated surtax," Rangel said.

Rangel didn't describe details, but one official said the surtax would apply to individuals with adjusted gross incomes over $280,000 a year, and couples over $350,000. A senior House aide said the surtax would be 1 percent for the first group of high earners, those households making $350,000 or more. The levels for the other two groups, those above $500,000 and $1 million in annual income are still being determined, said the aide.

More pain for Blue state high earners.