AlphaNinja - People will quit working. They'll simply quit. (See table at the bottom)
DJ reports House Democrats proposed new taxes on the wealthy to help fund an expansion of govt health benefits. But the bill also includes a mechanism to peel back the tax increases if the revenue isn't needed to fund the bill. The bill would place a 5.4% surtax on individuals and families with annual gross income exceeding $1 million. Individuals and families with annual income above $350,000 would face a 1% surtax, and those making between $350,000 and $500,000 a year would be hit with a 1.5% surtax.
Those surtaxes for the last two categories would jump to 2% and 3% by 2013, unless the director of the White House Office of Management and Budget determines that other provisions of the bill have resulted in savings to the government of more than $150 billion. Democrats say new programs for preventive care, for example, will achieve savings that aren't counted upfront by the Congressional Budget Office.
Despite nervousness from many Democrats about contents of the package, House leaders aim to bring it before the full House for a vote before Congress begins its summer recess period in mid-August. Lawmakers "can't go home for a recess unless both the House and the Senate pass bills to reform and restructure the health-care system," Rep. Henry Waxman, D-Calif., said. The bill also includes a public health-insurance option.
AlphaNinja - Here is an example of a $1million per year earner in California or New York. With the Bush tax cuts expiring next year and this new health care surcharge, why would this person go to work 80 hours a week, when he/she could earn as much by putting their money (yes, I've assumed that they've saved $10mil if they're making $1mil per year in their 50's) into a tax-free muni bond, and instead spend time with his/her family?
I'm not trying to be political, just rational.