Obama To Seek $634 Billion For Health Care

Administration Official Says Budget Blueprint Will Call Down Payment To Overhaul System

(AP)  President Barack Obama's first budget will seek $634 billion over 10 years as a down payment on health care reform, a senior administration official said Wednesday.

The official said Mr. Obama's proposal is meant to start a dialogue with Congress over how to provide coverage for an estimated 48 million uninsured while also slowing health care costs, which amount to $2.4 trillion a year and keep rising even as the economy is shrinking.

The senior official spoke on condition of anonymity because the budget won't be released until Thursday.

Mr. Obama's request comes on top of recent health care expansions approved by Congress and also described by his administration as down payments toward overhauling the health care system. Those include $32 billion to expand coverage for the children of low-income workers and $19 billion to speed the adoption of computerized health records.

Aside from health care, the budget will extend Mr. Obama's signature $400 tax cut for workers, originally enacted as part of the economic stimulus plan.

The budget also calls for an increase in the top income tax rate, from 35 percent to 39.6 percent for couples with incomes above $250,000 a year, said another administration official.

The biggest tax adjustment, however, would come from updating the alternative minimum tax for inflation. That would add $150 billion to the deficit by 2013. The AMT was originally designed to make sure the wealthy paid at least some taxes, but it threatens to ensnare some 24 million middle- to upper-income taxpayers next year.

Mr. Obama has called on Congress to send him a health care reform bill this year, but even before the budget arrives on Capitol Hill, senior members of both parties say they are concerned about the cost.

Almost no one believes that Americans are getting good value for their health care dollars. Some experts say 30 percent or more of what the nation spends may be going for tests and treatments of little or no lasting benefit.

But bringing the uninsured into such a costly system won't be easy. Experts say the cost could easily exceed $1 trillion over 10 years, a figure that the Obama administration does not dispute.

Against that backdrop, "it's very hard for me to understand why the answer is to put more money into the system," Senate Budget Chairman Kent Conrad, D-N.D., said at a hearing Wednesday.

Sen. Charles Grassley of Iowa, the senior Republican on the Finance Committee, warned that Mr. Obama is walking "a razor's edge between a broken health care system and fiscal catastrophe."

But administration officials say overhauling the health care system to slow increases in costs and get everybody covered is essential to solving the nation's long-term budget problems. They argue that it may take a big investment up front to reap significant dividends over the long term.

The $634 billion Mr. Obama wants to set aside for health care would be almost evenly divided between spending reductions and tax increases.

Mr. Obama's plan would trim $316 billion over 10 years from Medicare. Some of the savings would come from scaling back payments to private insurance plans that serve older Americans, which many analysts believe to be inflated. Other proposals include charging upper-income beneficiaries a higher premium for Medicare's prescription drug coverage.

The health care proposal would also limit tax deductions for upper-income individuals and families, raising about $318 billion over 10 years.

[bajajohn1]

Health care reorganization will help reduce the cost of doing business and free American business to be more competitive. Get it through your thick skulls. Blame Bush for the mess he left behind.

[blog_fever2]

He would give of what He had, and ask others to give what they had. He would not ask others to take from their neighbor in order to give to the poor. That would be sinful, as that is theft!
Posted by mortar29 at 11:02 AM : Feb 26, 2009
****************************
"He who has pity on the poor lends to the Lord, and He will pay back what he has given" Proverbs 19:17

"Trust in the Lord with all your heart and lean not to your own understanding; in all ways acknowledge Him, and he shall direct your paths." Proverbs 3:5-6

[slownewsday-2009]

He would not ask others to take from their neighbor in order to give to the poor. That would be sinful, as that is theft!

Posted by mortar29

How is asking "theft"?

[msmabuse]

Maybe we could talk about this more at the white house party tonight.
If we dont spend too much having the parties!

[blog_fever2]

"What would Jesus do in this situation?" Would He reserve healthcare to only the ones who could pay for it? Who determines who can have the healthcare and who can not? The problem with our country is that everyone wants to build personal wealth on the backs of people that need the most help. People judge people too much without knowing the entire circumstance. "Therefore let us come to the throne of grace that we may obtain mercy and grace to help in the time of need." Hebrews 4:16

[blog_fever2]

I for one believe the healthcare system in this country should be socialized like various other systems we all utilize. That is one of the basic rights of LIFE, liberty, and pursuit of happiness. There are certain things in like that should not be controlled by greed. "He who oppresses the poor to increase his riches, and he who gives to the rich will surely come to poverty." Proverbs 22:16

[kennyrodgers]

Maybe I missed something, but did President Obama say anything about higher taxes to pay for this health care and did he say anything about personal responsibiltiy? Why should someone who watches their diet, exercises regularly, doesn't smoke, drinks in moderation, doesn't use drugs and practices good health habits subsidize someone whose idea of a balanced diet is a quarter pounder in each hand, gets their exercise from the television's remote, smokes heavily, drinks heavily, uses drugs and generally practices bad health habits.

[endurorob]

Watch Michael Moores Documentary "SICKO". Health care should be free and top notch. We are the ones who make this country great, politicians are driving our country into the ground. This is our country, we need to start telling gov`t what to do. sales tax not income tax, everyone pays except poor. Do not tax essential food items, free health care.
Posted by rj8118 at 6:03 AM : Feb 26, 2009

Michael Moore has a political agenda. UI would not take his so called documentaries to be the full truth.

[rj8118]

Watch Michael Moores Documentary "SICKO". Health care should be free and top notch. We are the ones who make this country great, politicians are driving our country into the ground. This is our country, we need to start telling gov`t what to do. sales tax not income tax, everyone pays except poor. Do not tax essential food items, free health care.

[endurorob]

tax - tax - tax - spend - spend - spend.............thats the Democrats way of life. They think of themselves as Robinhood....take from the people who work for a living and give to the poor who are too lazy to work.
Posted by hunterdon6 at 5:57 AM : Feb 26, 2009

Not quite the same as the robin Hood thing. The people that Robin Hood was giving to were the onse that were doing all the work and the ones he was taking from from were the oppressive land owners. The dem situation is taking from the land owners and the ones doing all the work and giving to those with little to no ambition to contribute at all.

[hunterdon6]

tax - tax - tax - spend - spend - spend.............thats the Democrats way of life. They think of themselves as Robinhood....take from the people who work for a living and give to the poor who are too lazy to work.

[endurorob]

The only fair tax solution that I see is to tax a commodity such as gas, but eliminate sales tax on food. Everyone uses gas, even the poor, and there are no loopholes for the rich. Regulate fuel prices for transport carriers, however charge them a road usage tax based on mileage for infrastructure funding.
Posted by rudedogrulz at 5:23 AM : Feb 26, 2009

I would go along with the sales tax on everything but food. I also would not tax esential services like health care. I would not include snack foods and soft drinks in the food exemption. They are more of a luxery or convenience item and taxing them would encourage those of lesser means to eat properly.

[endurorob]

Better idea, stop funding military bases and misadventures around the world, reserve our forces solely for defense of our territory, and not as a mercenary force for multinationals, stop foreign aid to countries that don't need it (Israel, for example, has received $124,000 for each of its citizens over the past 30 years from the US), close the loopholes that allowed 66% of the Fortune 500 to pay no taxes last year, close the offshore tax haven loopholes, the Enron loopholes and other Wall St. shams, disqualify any contractor whose books are not 100% legit, and then there will be no need to increase.
Posted by brianbwb-2009 at 4:55 AM : Feb 26, 2009

Some of this statement I would agree with but your understanding of the uses of the military is very limited.

[brianbwb-2009]

"That is insanity. It causes achievers to either find ways to get around the government, or to just close up shop and say forget about it. And guess who it hurts in the end? The rich? Of course not. it hurts those that lose the jobs or never got the jobs they could have."

Isn't that the core tenet of capitalism? If you cannot afford it, you don't get it? You complain about not being able to afford the luxury of making more money, this is funny the poeople we are discussing cannot afford to be treated for their health.

"That is the stupidity of socialism, of the progressive tax system!" Posted by mortar29

It is actually the core of the unregulated, capitalist system you love so much, you have it if you can afford it, if not tough luck.

But it seems you only hold that principle to the throats of the less fortunate, but consider yourself not to be beholden to your principle.

[endurorob]

Ask deficit-entrenched Texas how that is working out, they had no income tax, and now have trouble funding infrastructure services.

Posted by brianbwb-2009 at 4:55 AM : Feb 26, 2009

They could do like the fed and just borrow away the future to fund the current welfare system.

[endurorob]

The big problem I see coming is that to pay for all these programs the taxes will eventually, within a couple of years, come to the point that a person making $70k a year will be paying so much in taxes that their take home pay will be equivilant to a person making $45k a year. So why do the work and make the effort ti takes to make $70k when you can get a less stressful job paying $45k and take home the same amount of $.

[brianbwb-2009]

"The perfect solution!" Posted by mortar29

Ask deficit-entrenched Texas how that is working out, they had no income tax, and now have trouble funding infrastructure services.

Problem is the poor would have to pay a much greater share of their income to taxes, and as the sellers raise their prices, the tax rates will go up, spiralling into oblivion.

Better idea, stop funding military bases and misadventures around the world, reserve our forces solely for defense of our territory, and not as a mercenary force for multinationals, stop foreign aid to countries that don't need it (Israel, for example, has received $124,000 for each of its citizens over the past 30 years from the US), close the loopholes that allowed 66% of the Fortune 500 to pay no taxes last year, close the offshore tax haven loopholes, the Enron loopholes and other Wall St. shams, disqualify any contractor whose books are not 100% legit, and then there will be no need to increase.

[endurorob]

Bingo i.e the welfare system in this country is growing at an exponential rate. The tax base is shrinking ob both top and bottom ends and once again middle class America gets stuck with the tab..the few that hold jobs of course
Posted by rudedogrulz at 4:47 AM : Feb 26, 2009


And under Peleidama the welfare system will only continue to grow.

[endurorob]

Again, you availed yourself of taxpayer funded roads, rails, even schools, and now don't want to pay your fair share. You got more than the average person out of it, so you should put more than the average person back into it, simple as that.
Posted by brianbwb-2009 at 4:32 AM : Feb 26, 2009

The problem isn't the people that pay their fair share as I believe morter does, but those that make little to no contribution and don't pay their fair share or any taxes and are the first to take advantage of the efforts of the tax payers.

[brianbwb-2009]

"... And to say somehow that thru the fruits of our own labor that we didnt earn it or that someone else deserves it is the height of immorality. It is theft." Posted by mortar29

Again, you availed yourself of taxpayer funded roads, rails, even schools, and now don't want to pay your fair share. You got more than the average person out of it, so you should put more than the average person back into it, simple as that.