WASHINGTON — An income-tax surcharge on highly paid Americans emerged as the leading option last night as House Democrats sought ways to pay for health-care legislation that President Obama favors, several officials said.
The surtax would apply to individuals with adjusted gross income of more than $200,000 and to couples making more than $250,000.
In addition, key lawmakers are expected to call for a tax or fee equal to a percentage of a worker’s salary on employers who do not offer health benefits.
Rep. Shelley Berkley (D-Nev.), a member of the tax-writing Ways and Means Committee, said the proposed surtax would be a way to avoid a “nickel-and-dime” approach involving numerous smaller tax increases.
Berkley and others cautioned that no final decisions have been made, either by the committee or by the Democratic leadership, which hopes to have legislation drafted by tomorrow and through the House by month’s end.
The developments stood in contrast to events in the Senate, where Democrats edged away from their goal of passing ambitious health-care legislation by early August amid heightening partisan controversy over tax increases and a proposed new government role in providing insurance to consumers.
“I think the ultimate goal is to have a bill by the end of this year” that is signed into law by the president, said Sen. Chuck Schumer (D-NY).
He said Democrats would make “every effort to stick to the timetable” that included initial Senate action by next month.
Meanwhile, officials, speaking on condition of anonymity, said other, smaller tax options remain possibilities, depending on the overall cost of the legislation.
A few lawmakers are still seeking a tax on soft drinks, and there has been discussion of removing the current tax break drug companies receive for advertising.