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.
