Obama seeks $ 634B over 10 years for health care

 

Thursday, Mar 05,2009, 5:06:32 PM   Click:

Obama seeks $ 634B over 10 years for health care RICARDO ALONSO-ZALDIVAR and ANDREW TAYLORAssociated Press Writer The Associated Press
Barack Obama WASHINGTON_President the first budget of $ 634 billion to seek more than 10 years as an advance on the reform of health care _ a little over half of May that it ultimately cost to provide all the America with medical coverage. The budget also proposes a package of tax cuts for the middle class and tax increases for households with higher incomes. This includes extending beyond 2010 the $ 400 annual tax cut in terms of stimulus that has just been signed into law.

The information came from two officials, who spoke on condition of anonymity because the budget will not be released until Thursday.

Obama says his plan to reduce the extraordinary $ 1.5 trillion deficit this year to $ 533 billion in 2013 _ an uncertain given the turbulence of the economy.

Health care provisions are intended to initiate a dialogue with Congress on how to provide coverage for an estimated 48 million uninsured while slowing spending on health, amounting to 2.4 trillion $ per year and continue to increase while the economy is declining.

Independent experts say, providing coverage for all could easily cost over $ 1 trillion over 10 years, the number of directors does not Obama. Lawmakers on Capitol Hill, however, concerned about the cost.

The budget documents provided to the Associated Press show that Obama will not establish a detailed plan for a review of health care, but rather a set of principles and ideas on how to mobilize a great deal of money.

Whatever the Congress, the documents said, "must make the United States on a clear road to cover all Americans." Obama called on Congress to send him a draft health care reform this year.

Obama principles include ensuring people a choice of insurance plans and physicians and the employer-based coverage. He also said Americans should be able to take their health care benefits when they change jobs.

The $ 634 billion would be on top of the recent expansion of health care approved by Congress and has also described the administration as to the delivery of payments to health care. This includes $ 32 billion for expanding coverage for children of working poor and $ 19 billion to accelerate the adoption of computerized health records.

Besides health care, the budget of the signature to expand Obama tax cut of $ 400 for workers, and $ 800 for married couples.

The budget provides an increase in the top rate of income tax from 35 percent to 39.6 percent for married couples with incomes over $ 250,000 a year, the Directors declared a other official.

The biggest tax adjustment, however, update from the alternative minimum tax for inflation. This would add $ 150 billion deficit by 2013. The AMT was originally designed to ensure that the wealthy paid at least some taxes, but it threatens to capture about 24 million middle to upper income taxpayers next year.

The budget would also freeze the inheritance tax at current levels, rather than leaving permanently to expire next year.

Even before the budget arrived on Capitol Hill, senior lawmakers from both parties say they are concerned about the cost of health care reform.

Almost nobody believes that Americans are good for their health dollars. Some experts say 30 percent or more of what the nation spends May go for tests and treatments with little or no lasting benefit. But bringing the uninsured in such a costly system will not be easy.

In this context, "it is very difficult for me to understand why the answer is to put more money into the system, the Senate Budget Chairman Kent Conrad, DN.D., said during a hearing Wednesday.

Of Iowa Senator Charles Grassley, senior Republican on the Finance Committee, Obama warned that the march is "the razor's edge between a broken health care system and exercise disaster."

But the administration said the overhaul of the health care system to slow the rising costs and get everybody covered is essential to solving the nation's long-term budget problems. They argue that May take a big investment at the front to draw dividends in the long term.

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

Obama's plan trim $ 316 billion over 10 years from Medicare. Some of the savings come from reducing payments to private insurance plans that serve older Americans, which many analysts believe to be inflated. Other proposals include the burden of higher income beneficiaries higher premiums for health coverage of prescription drugs.

Health care proposal would also limit tax deductions for people with higher incomes and the family, raising about $ 318 billion over 10 years. Married couples over $ 250,000 would be limited deduction for charitable contributions, local taxes and other expenses. Rather than collecting nearly 40 cents on the dollar, they would be limited to 28 cents.

These proposals are very controversial, especially with the non-profit institutions that depend on wealthy donors.

© Copyright 2009 The Associated Press. All rights reserved. This material May not be published, broadcast, rewritten or redistributed. Barack Obama WASHINGTON_President the first budget of $ 634 billion to seek more than 10 years as an advance on the reform of health care _ a little over half of May that it ultimately cost to provide all the America with medical coverage.