Taxing the Wealthy is the Plan
The major ways that President Obama has proposed to pay for his health care reform are to tax families making more than $250 thousand a year by reduceing their mortgage interest deduction and charitable contributions deduction. Anyone who gives the Obama health plan a good analysis can see that if the government is going to spend $634 billion, that money needs to come from somewhere and that somewhere will usually come from taxes. Taxing wealthier families is in line with one of Obama's campaign promises and so far, with his healthcare reform, he is sticking to that promise.
Will it Still Affect Everyone?
Finally getting the Obama health care plan explained and learning that the wealthy being taxed is the main way to pay for it is the first step in understanding the president's healthcare reform... but now you get to learn that if mortgage interest and charitable contributions are decreased, that may affect us all . Although these cuts will only affect the wealthy initially, some feel it will eventually domino down to the middle class and beyond.
Real-estate and Charities May Suffer and Charities May Suffer
First, if the mortgage interest deduction is lowered, even if it is just for the wealthy, real-estate experts feel that would possibly lower the value of all homes. And it is easy to see why reducing the deduction for charitable contributions may affect everyone... if the wealthy do not get as much of a tax break on their charitable contributions then they may not give as much to charities... and the wealthy are a prime source for monies that sustain charities.
Maybe We Can Handle it in 2011
Some feel all of this is not bad. If we want some type of government health care system we need to be willing to give up something, right? Although some may be wondering what type of affect this will have on the economy and the housing market, the Obama administration does not plan to make these changes until 2011, when they feel the economy will be stable enough to handle it. All of this may be a tough sell for the Obama administration but Obama seems firm and does not plan to waiver on healthcare reform.