Tuesday, December 1, 2009

Dick Morris and Eileen McGann : Obamacare To Hike State Taxes - Townhall.com

Dick Morris and Eileen McGann : Obamacare To Hike State Taxes - Townhall.com: "While Obama has been at great pains to make a show of avoiding taxes on the middle class to pay for his health care changes, his proposed increase in Medicaid eligibility will have a huge impact on the 39 states whose income cutoffs for the program are below those required in the new federal legislation.

All states except for Connecticut, Illinois, Maine, Massachusetts, Minnesota, New Jersey, New York, Rhode Island, Tennessee, Vermont and Wisconsin (plus the District of Colombia) will have to raise their eligibility for Medicaid under the Senate health care bill. And they will have to pay for part of the cost. Under the House bill, with a higher Medicaid eligibility standard, Massachusetts and Vermont would also have to pay more.

The magnitude of the new Medicaid spending required by Obamacare is such as to transform the nature of state finances. A large part of the reason that some states, particularly in the South, have been able to avoid higher taxes is because they have chosen to keep down the Medicaid eligibility level."

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