Pelosi Backpedals on Rangels Tax the Rich Scheme

Their in trouble and they know it. The reasons Pelosi wants to change Rangel's plan is so they could call it a millionaires tax, not from a sudden fear that high taxation rates are somehow bad. The plan is to skin the pharmaceutical and insurance industry alive, with the extra savings they can make out the balance and on paper cover some of the costs of their trillion dollar folly. Of course the pharmaceuticals signed onto Obama care as a means of self preservation, I guess that isn't working out as planned. All in all it was a disastrous day for the President between the Mayo clinic attacking the House plan and Obama's decision to withhold his budget lest the fiscal disaster he has inflicted on this country undermine what credibility he has left.

From the Times:

A spokesman for Ms. Pelosi, Nadeam Elshami, said she still hoped for a vote before the House adjourns on July 31.

Even as Mr. Obama sought to answer critics, the Mayo Clinic, cited by the president and lawmakers of both parties as a model, criticized the House health care bill on Monday, saying, “The legislation misses the opportunity to help create higher-quality, more affordable health care for patients.”

Under the House bill, the surtax would apply to individuals with adjusted gross incomes of more than $280,000 and couples filing joint returns with incomes over $350,000. Aides to Ms. Pelosi said she wanted to lift the thresholds to $500,000 for individuals and $1 million for joint filers, so the new levy could be described as a tax on millionaires.

With the Democrats divided and GOP support for the liberal version non-existant it has pushed any possible legislation past the President's self imposed July deadline.