As Sen. Rockefeller points out that Sen. Baucus’ proposal is really a huge tax increase on the middle class. Not that that’s a surprise.
Given the 35% excise tax on “high cost plans”, we can immediately conclude that insurance companies will no longer offer those plans, since they would now be net money losers.
1. Since those plans will no longer be offered, those families will not, in fact, be able to keep their existing plan, no matter how much they like it. Certainly sounds like Obama’s indulging himself in a little bearing of false witness, no?
2. The excise tax will not bring in anywhere near the $200 billion anticipated by Sen. Baucus. This means that other taxes will have to go up to pay for the Obama plan.
Keep in mind that Congress and the plans covering the bureaucracy will likely be exempt from this tax, so they’ll be keeping their “Cadillac” plans – while degrading your coverage, and making you pay more for the privilege as well.