Healthy tax increases, not only on wealthy

When it comes to the taxes associated with the new health care bill, Vice President Joseph R. Biden Jr.'s assessment stands: It's a big — very big — deal.

The historic overhaul of the nation's health care system that President Obama signed Tuesday, when combined with the fixes making their way through Congress, will raise taxes over the next 10 years by more than a half-trillion dollars.

The tax increases range from hundreds of billions of dollars in new Medicare levies, including one that taxes investment income such as capital gains and dividends for the first time, to a 10 percent excise tax on indoor tanning services that will raise less than $3 billion over the next decade.

Imposing a Medicare tax on investment income "would reduce demand for investment, which is the last thing that the economy needs right now. It would slow [economic] recovery, reduce employment opportunities and hinder wage growth," said Karen Campbell of the conservative Heritage Foundation. "Less investment, lower investment values and lower wages hinder the ability of households to build wealth."

Under a procedure that doesn't require a 60-vote majority for approval, the Senate is considering a package of changes to the new health care law to placate House members' concerns about the Senate bill, which the lower chamber approved Sunday with no Republican support. Among other things, the Senate must approve the numerous tax-law changes that the House passed in a second bill Sunday to fix the upper chamber's December proposal.

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