President Barack Obama’s health reform proposal released on Monday breaks his pledge to not raise taxes on filers earning less than $250,000, according to Americans for Tax Reform.
The overall proposal is expected to cost $950 billion over 10 years. Taxpayers earning less than $250,000 will pay $136 billion of that total, said Ryan Ellis, ATR’s Tax Policy Director.
Obama’s health care proposal broadens the Medicare tax to unearned income that will affect dividend payments, capital gains, annuities, royalties and rents. The White House did not respond to inquiries about whether the tax will be applied to retirement accounts.
The White House plan also limits itemized deductions for medical expenses. Taxpayers can currently deduct expenses over 7.5 percent of their adjusted gross income. Obama increases that threshold to 10 percent.
While stumping for president, Obama repeatedly said taxes would not be increased on filers earning less than $250,000. At one stop in Dover N.H on Sept. 12 he stressed the promise included all taxes, not just those applied to income.
“I can make a firm pledge," he said. "Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”