Health Care plan to be supported by Investment Income Tax

Congressional Budget Office numbers for the latest version of the Democrats' health overhaul would cost $940 Billion over a decade, while at the same time, bringing down the federal budget deficit by $138 billion.

How can this be? As a starter, with new taxes and curbs on Medicare spending.

Here is the gist on their "wealth distribution" scheme: The plan costs include $466 billion to give tax credits to help lower earners buy insurance, $434 billion to expand the Medicaid federal-state insurance program for the poor and $40 billion in tax credits to help small businesses offer coverage (some additional "gotcha's" in this one).

Democrats made deeper spending cuts and added new taxes: taxes on health industries such as drug makers and insurance companies, expansion of Medicare taxes (families earning more than $250,000 a year will pay a 3.8% Medicare tax on unearned income such as dividends and interest), and deeper cuts to privately administered Medicare plans under the Medicare Advantage Program.

Editors Note: We are entering a new era of "tax everything", so plan accordingly. (JWM)