Washington, D.C.  – Citizens for Tax Justice, SEIU and USAction today released  a new report that lays out options for paying for quality, affordable health care reform that includes a public health insurance option.

The report, prepared by Citizens for Tax Justice, discusses reforming the Medicare tax and limiting itemized deductions for the wealthiest Americans. The report includes comprehensive, state-by-state information on the limited impact of these proposals on the U.S. population. Reporters can view a copy of the report here: www.ctj.org/payingforhealthcare.htm

The report recommended that the Medicare tax be extended to cover investment income such as capital gains and stock dividends. The Medicare payroll tax, at a rate of 2.9 percent for most lower- and middle-income Americans, is the one important tax that is dedicated to health care, but it completely exempts wealthy investors. The CTJ report also backed President Obama’s proposal to limit itemized deductions, a reform that would affect only 1.3 percent of taxpayers but could raise more than $260 billion over the next ten years.

"The proposals we're discussing would be good policy even if Congress was not trying to raise revenue to pay for health care reform," said CTJ director Robert S. McIntyre. "They make our tax system fairer and more rational. And they would mainly affect the wealthiest Americans, who received the bulk of the benefits of all the tax cuts enacted over the past several years."

Alan Charney, USAction Program Director, said new revenue is needed for two reasons. First, he said, current revenues cannot pay for affordable, quality health care for all. And second, he said it is time that the wealthiest Americans pay their fair share.

“Americans see the unfairness in the current system,” he said. “They know that the wealthiest Americans – people who make up the top one to five percent in income brackets – aren’t paying their fair share. That’s what this debate is about.”
 
“SEIU supports strengthening Medicare for current and future beneficiaries by broadening the Medicare tax to apply to certain investment income,” said Ann Kempski, SEIU Director of Health Policy. “Like President Obama’s proposal to limit deductions for high income taxpayers, this is a fair approach to fund urgent investments in health care and strengthen Medicare without asking already- strapped workers to pay an ever growing share of their wages to bailout a failing health care system.”  

Over the next two weeks, press events will be held in several dozen states throughout the U.S. to educate constituents and members of Congress that these two revenue options would have a negligible impact on the overwhelming majority of Americans.

Citizens for Tax Justice, SEIU and USAction are members of Rebuild and Renew America Now, a coalition of more than 60 national groups and more than 500 local and state groups that support responsible and fair tax policies to raise the revenue that is needed to pay for important investments such as health care, clean energy, education and infrastructure needs. For more information, please visit www.rebuildandrenew.org