In an address to the to the American people this evening, December 6, 2010, the President indicated that compromises needed to be made. It seemed that he was talking more to democrats, almost trying to convince them that his decisions/compromises were necessary. In his address, he slated several items which he was going to take back to the democratic caucus:
- Temporary 2% Reduction in Payroll Taxes
- 2 Year Extension of Bush-Era Tax Credits-At first, the President was trying to get the extension for the middle class only and remove it for Americans earning more than $250K per year.
- 13 Month Extension on Unemployment Benefits
- Estate Tax Compromise-2 Years at 35% with a 5 Million Exemption
- 1 Year Reduction in Social Security Taxes-This was a late add-on.
So why is this important to Health Reform (PPACA)? It is important to health reform because these taxes could potentially have been a huge funding source for the reforms. Just the elimination of the Bush-Era Tax credits alone could cost the Federal Government more that one trillion dollars. This, in-turn, could hamper the amount the Federal Government would be able to push to the States in order to set-up the State-Run Health Reform Programs. For more information on the funding of health reform, please go to: "Guess Who Gets to Pay for Health Reform?" (PPACA)
