Tax Foundation's Analysis of $938 Billion Health Care Reform Legislation

The $938 billion health care reform legislation signed by President Obama on March 23 is financed primarily through net cuts to Medicare and an increased Medicare tax on high-income taxpayers, according to the Tax Foundation. "The Medicare spending cuts would save $416.5 billion, or about 39 percent of the bill's 10-year cost. The increased Medicare taxes on high-income people -- including an additional 0.9% Medicare Hospital Insurance Tax on earned income exceeding $200,000 for single taxpayers ($250,000 for married couples) and an "Unearned Income Medicare Contribution" of 3.8% on investment income for taxpayers with adjusted gross incomes (AGI) in excess of $200,000 for single filers ($250,000 for married filers) -- would raise $210 billion, or about 19 percent of the legislation's cost," according to the Tax Foundation's press release. Details on what is contained in some of the larger categories in the Tax Foundation's pie chart (left, click to enlarge) are itemized here.

The Administration's summary of key elements of the health care reform legislation here. Hat tip to beSpacific. [JH]