American Power: Critics Slam Costs of Obamacare!

Friday, July 17, 2009

Critics Slam Costs of Obamacare!

From the Washington Post, "House Panel Passes Health Bill, Critics Slam Cost":

A key U.S. congressional committee on Friday approved healthcare legislation that includes a hefty tax on the rich but critics pointed to fresh warnings that President Barack Obama's health reform plan would do little to rein in skyrocketing spending.

The House Ways and Means Committee agreed to raise taxes to pay for the plan's estimated $1 trillion cost in part by higher taxes on couples making more than $350,000. Critics argue that it would harm small businesses who fall into this tax category.

The bill was approved on a 23-18 vote and must also be approved by two other House committees. It is part of a broad Obama plan to bring health insurance to many of the 46 million Americans who do not have it and trim excessive costs.

Further doubts about the high cost of Obama's effort emerged on Thursday when Congress' own independent budget analyst said reforms now being considered would do little to control rising costs. Republicans and fiscally conservative Democrats seized on this, and called for more controls on the scale and cost of the plan.

Congressional Budget Office chief Douglas Elmendorf told the committee its legislation would expand federal spending on healthcare "to a significant degree" while doing little to trim costs.

"Instead of rushing through one expensive proposal after another, we should take the time we need to get things right," Senate Republican Leader Mitch McConnell said.