Wonk Room » Blue Dogs Threatening To Quash Health Bill Over Surtax Voted For Bush Tax Cuts

Blue Dogs Threatening To Quash Health Bill Over Surtax Voted For Bush Tax Cuts

By Pat Garofalo on Jul 16th, 2009 at 5:30 pm

Blue Dogs Threatening To Quash Health Bill Over Surtax Voted For Bush Tax Cuts

Rep. Mike Ross (D-AR) — a member of the Blue Dog coalition — is reportedly upset about the health care bill that’s come out of the House, and is banding with seven other Blue Dogs on the House Energy and Commerce Committee to vote down the bill if some changes aren’t made.

Among other things, Ross reportedly objects to the surtaxes included in the bill. “I don’t like the idea of raising taxes in the worst economic crisis since World War II,” he said.

First, the surtax wouldn’t kick in until 2011, and at that point, if we are still “in the worst economic crisis since World War II,” we’ll have far bigger problems to worry about than a tax increase. But more importantly, the Blue Dogs are waxing poetic about the horrors of the surtax, after having voted for the budget busting Bush tax cuts in 2001 and 2003 that constituted a huge gift to the very wealthiest Americans.

Of the seven Blue Dogs on from Energy and Commerce who are causing a fuss, four were around to vote on Bush’s tax cuts. Here’s how that went:

Member	2001	2003
Rep. Mike Ross (AR)	Yes	No
Rep. Bart Gordon (TN)	Yes	No
Rep. Jim Matheson (UT)	Yes	Yes
Rep. Baron Hill (IN)	No	No

Remember, the surtax would constitute a 1 percent tax on households making between $350,000 and $500,000 per year, a 1.5 percent tax on those making $500,000 to $1 million, and a 5.4 percent tax on those making more than $1 million. It would have no impact on 98.7 percent of Americans.

But there is that one percent that would be affected, so let’s make some comparisons. Over the ten year window from 2001-2010, the Bush tax cuts gave the richest one percent of Americans about $715 billion in tax breaks. This comes out to about $518,000 per household over ten years or about $51,800 per year.

The House bill, meanwhile, would raise $544 billion from those same households over ten years, which is decidedly less than the $715 billion. So we’re not even talking about a level of taxation that would make up for the breaks that Bush handed out. There’s a legitimate debate to have regarding the surtax, but a simple knee-jerk reaction — particularly to an increase only affecting a group that’s done very well in terms of tax policy for eight years — is unproductive.

Comments
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5 Responses to “Blue Dogs Threatening To Quash Health Bill Over Surtax Voted For Bush Tax Cuts”

smokeymonkey Says:

This article seems unfair. The title mentions “Blue Dogs”, but the article only mentions 4 congressmen and is not indicative of the ‘blue dog coalition’ in the House.

Also, in your matrix, Baron Hill did not vote for Bush’s taxes cuts, so now you are down to three.

Two of the three voted against the second round of cuts, and I would imagine that voting for the first round in 2001 in leaning republican districts would be actually doing their job, regardless of party.

So now we are down to just Jim Matheson, a congressman from Utah. Can you blame him for being conservative on the tax side?

I think this article is a gross example of pure partisan “reporting” instead of giving me (a pure Democrat, progressive partisan) some real information to work with.

I would not bother with the comment if I didn’t think it important.
July 16th, 2009 at 7:05 pm
BLogan Says:

Welcome to the world of Jimmy Carter – higher taxes at the worst possible time. Spending more money that we do not have. Watch out inflation!
This healthcare program will cost jobs, will reduce taxable revenues to states and the fed. I own a business in California that generates several million dollars a year in income from foriegn companies – creates jobs and brings in income to the US. Those jobs will be leaving if this nonsense continues with spend spend spend – tax tax tax. Beside I pay 100% of health care costs for my entire employee base. But with what I have seen on this plan I have had enough. My business costs will increase and I will be unable to hire more people and give pay raises.
July 17th, 2009 at 11:49 am
The IP Cops Says:

I’m fairly sure that artwork is copyrighted.
July 17th, 2009 at 12:23 pm
G Denton Says:

BLogan instead of spouting Republican talking points should instead be supporting single-payer health care. Why should he be responsible for supplying health insurance to his employees? In every other Western industrialized country that is not his responsibility and he should be doing what his business does best. Why do most multi-national corporations support health care reform? Because they know they reduce their costs in other countries by not paying for health care insurance.
Anyone who spouts off about spend, spend, spend without acknowledging the larger Bush/Cheney/GOP spend, spend, spend of the last 8 years that did not benefit Americans has nothing worth while to say.
July 18th, 2009 at 1:07 pm
BLogan Says:

Sorry G. Denton this is not Republican spin and further it is time to move on as Bush/Cheney are not relavent to this issue (other issues yes but not this one). The point is that several Democrats and many independents (such myself)are afraid of the costs and lack of thoughtful planning in the healthcare program being proposed. How can you possibly create a program the size of this and try to pass it in such a short period of time. Look at the number of Democratic Congressmen that are looking to back away from the plan. They need to take their time to do a proper review and then draft a plan they can present to the people. I would bet less than 10% of the lawmakers have thoroughly read the proposed 1018 page plan. Just like the stimulus package that they voted on without reading.
July 20th, 2009 at 6:33 pm