Democrats on the Senate Finance Committee on Thursday killed an
amendment proposed by Sen. John Ensign that would have exempted
middle-class families from paying a tax for failing to obtain
health insurance. The amendment was shot down 12-11, with Sen.
Blanche Lincoln the lone Democrat voting in favor.
Committee Chairman Max Baucus argued that adopting the amendment
would effectively mean that people earning under $200,000 would
not have to purchase health coverage, thus undermining a key
provision of his health care proposal.
Under the current Baucus proposal, individuals would face a tax
of at least $750 if they do not purchase health coverage. And
while the proposal would provide subsidies to lower-income
Americans, those subsidies would stop at 300 percent of the
federal poverty level. What that means is that a family of four
with a household income above $66,150 would face a tax of $1,900
if it does not obtain health insurance, while an individual with
income above $32,490 would face a tax of $950.
