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Tax expansion could pay for healthcare overhaul

Los Angeles Times, January 14, 2010

Democratic congressional leaders are considering a new strategy to help finance their ambitious healthcare plan: applying the Medicare payroll tax not just to wages but to capital gains, dividends, and other forms of unearned income. The idea could placate labor leaders who oppose President Obama's plan to tax high-end insurance policies that cover many union members, the Los Angeles Times reports. It could also help shore up Medicare's shaky finances, and the burden of the new tax would fall primarily on affluent Americans.