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Gov. Perdue: Health bill will hurt Ga., require new taxes or big service cuts

The just-passed federal healthcare bill will cost Georgia an added $1 billion in Medicaid spending per year, “requiring either a tax hike or offsetting cuts to public safety, education and other core services of state government,” Governor Sonny Perdue said Monday.

Perdue said the bill — passed Sunday night with only Democrat votes — will also hurt small-business owners across the state.

Perdue also called out all current state office-seekers to declare publicly their support of or opposition to the historic healthcare overhaul.

The governor again urged Attorney General Thurbert Baker to pursue a legal challenge to the soon-to-be federal law. Baker, a Democratic candidate for governor, has indicated in the past he has no intention of suing the federal government over this issue.

Perdue said the state is exploring other legal options to oppose the healthcare changes.

The following is the text of the governor’s statement March 22:

“Unfortunately, the United States House of Representatives last night chose politics over the will of the American people. The enormous upheaval of our healthcare system was pushed through the House against the wishes of the majority of American families and businesses.

“Here in Georgia, this vote will force an additional billion dollars or more of Medicaid spending per year, requiring either a tax hike or offsetting cuts to public safety, education and other core services of state government.

“While this colossal unfunded mandate cripples our budget, I am even more concerned about the debilitating impact it will have on Georgia’s small businesses. The extension of the Medicare tax on all non-wage income means that small business owners will see their top rate increased by 20 percent and investment income taxes increasing 60 percent.

“What is most unfortunate is that the American people had no voice at the table in Washington during the course of this debate. The only glimpse citizens saw of the process were closed-door meetings that resulted in backroom deals and the buying of votes to ensure passage.

“I am today renewing my December request to the Attorney General that he join other states in reviewing the constitutionality of this travesty. My office has already begun to review any and all legal options to challenge this legislation.

“I also urge the Georgia General Assembly to continue moving forward on my proposal to allow Georgians to purchase insurance plans across state lines. Now that Congress is mandating that every American purchase health insurance, we should open the individual market to as much competition as possible.

“Since this bill has such a significant impact on future state budgets, it is imperative that current candidates for elected office publicly state their plans to either support the Obama-Pelosi legislation or fight for the people of Georgia.”

Tax Foundation details new taxes ahead

Tax Foundation Highlights Tax Changes to Fund $940 Billion Health Care Reform Legislation

Washington, DC – The $940 billion healthcare reform legislation passed by the House of Representatives Sunday night contains Medicare spending cuts along with significant tax increases scheduled to take place over the next 10 years. A new Tax Foundation Fiscal Fact outlines the timeline of all tax provisions and highlights those that will increase or decrease revenue by more than $10 billion.

The major tax provisions include:

Retroactive to January 1, 2010:

* Small Business Tax Credit for certain small businesses (those meeting certain criteria) providing health insurance to employees (retroactive to January 1, 2010). In 2013, restricted only to insurance purchased through an exchange and only available for two consecutive years

* Exclusion of unprocessed fuels from the cellulosic biofuel producer credit (retroactive to January 1, 2010)

Scheduled to go into effect in 2011:

* Impose annual fee on manufacturers and importers of branded drugs ($2.5 billion for 2011, $2.8 billion per year for 2012 and 2013, $3.0 billion per year for 2014 through 2016, $4.0 billion for 2017, $4.1 billion for 2018, and $2.8 billion for 2019 and thereafter)

Scheduled to go into effect in 2012:

* Require information reporting on payments to corporations

Scheduled to go into effect in 2013:

* Limit health flexible spending arrangements in cafeteria plans to $2,500; indexed to CPI-U after 2013

* Impose 2.3% excise tax on manufacturers and importers of certain medical devices

* Raise 7.5% AGI floor on medical expenses deduction to 10%; AGI floor for individuals age 65 and older (and their spouses) remains at 7.5% through 2016

* Broaden Medicare Hospital Insurance Tax Base for High-Income Taxpayers - additional HI tax of 0.9% on earned income in excess of $200,000/$250,000 (unindexed), and Unearned Income Medicare Contribution on 3.8% on investment income for taxpayers with AGI in excess of $200,000/$250,000 (unindexed)

* Impose Fee on Insured and Self-Insured Health Plans; Patient-Centered Outcomes Research Trust Fund (expires after 2019)

Scheduled to go into effect in 2014:

* Impose annual fee on health insurance providers ($8 billion in 2014, $11.3 billion in 2015 and 2016, $13.9 billion in 2017, $14.3 billion in 2018, and indexed to medical cost growth thereafter); based upon firm’s market share starting in 2013

* Excise Tax (i.e., penalty) on Individuals Without Essential Health Benefits Coverage

* Excise Tax (i.e., penalty) on Employers Not Providing Health Insurance Coverage to Employees (Shared Responsibility for Employers)

* Refundable Tax Credit Providing Premium Assistance for Coverage Under a Qualified Health Plan

Scheduled to go into effect in 2018

* 40% excise tax on health coverage in excess of $10,200/$27,500 (subject to adjustment for unexpected increase in medical costs prior to effective date) and increased thresholds of $1,650/$3,450 for over age 55 retirees or certain high-risk professions, both indexed for inflation by CPI-U plus 1%; adjustment based on age and gender profile of employees; vision and dental excluded from excise tax; levied at insurer level; employer aggregates and issues information return for insurers indicating amount subject to the excise tax; nondeductible.

Tax Foundation Fiscal Fact, No. 218, “Timeline of Tax Provisions in the House Health Care Bill,” is available online at

The Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.



1and1isnt3's picture

The only "travesty" here is a governor so out of touch with his constituents that he would make the comments he did. I'm surprised he hasn't called up the militia and sent notice to Washington of Georgia's intent to cede from the union, again.

He can retire to the property he got from the sweet heart deal w/ the developer from Coweta down in Orlando. Or he can pay his health insurance w/ the money he got from the land deal in his home county. Or as a career politician on the GA payroll, I'm sure he'll get somethig. End of the day even that anti-Commie Nixon tried to pass this. Such socialist as the AARP, the American doctors, the Catholic hospitals, all supported this bill. The USA is no longer the only industrialized nation NOT providing care. The cry now should be: On to Universal Coverage !

Less than 1 year to go.. Good-bye. Thanks to the GA Teachers & the "Flagelets" for defeating Barnes & giving us 8 years of Sonny & Richardson & corruption.

S. Lindsey's picture

Single Payer... I think the Government should take care of us.. That's what we pay taxes for isn't?

"Whoever claims the right to redistribute the wealth produced by others is claiming the right to treat human beings as chattel."

-Ayn Rand

Your taxes are already paying. Every gunshot wound in the ER is treated & paid. Every uninsured sniffle in the ER is treated & paid. Universal coverage is the answer. The anger should be directed at the money wasted on the longest US war. A war that has been waged w/ no plan to pay for it from its creators. And its lies.

S. Lindsey's picture

and just when has the Government ever done anything well.. well ok.. They can spend like crazy..

I guess those that Uday and Qusay raped, tortured (true torture not some waterboard stuff) and killed may have said differently on the War if they could speak that is...

btw.. you do know Democrats voted to go to war right.. SO is your problem with everyone or just Bush? Is it just Iraq or Afghanistan or both?

"Whoever claims the right to redistribute the wealth produced by others is claiming the right to treat human beings as chattel."

-Ayn Rand

Uday & Qusay..sounds like a personal problem to me. There were no weapons of MD. Valerie Palme's husband proved that before we invaded. The sanctions in place along w/ the No Fly Zone were working.
I have a problem w/ everyone (D or R) that went down this path in Iraq and could not see that: 1) It was a Bush personal thang. Daddy didn't finish it & gets critized. 2) He tried to kill Daddy. 3) It's not a country. It's a WWI balkanized amalgamation of 3 sep. id's (Kurd, Shi & Sunni) A BIG No Win. There is no Nation Building once again in the "American" ideal.
If the resources focused on Iraq had been put into the right place..where the vipers lived that attacked US, Afganistan, the result would have been much different. You disagree? Hindsight is 20/20. I've preached this from day 1. So yes, the gov't can spend like crazy. In this case the longest war in US history. Fortunately it has only cost trillions of $'s (added to the deficit) and not thousands & thousands of deaths that the other crazy (Vietnam) spending got us into.

S. Lindsey's picture

but you might as well re-hash history because our future looks worse..

On your little missive on Saddam and WMDs here are some excerpts from articles that might (or might not) jog that memory..

<cite>"March 16, 1988: Toward the end of the Iran-Iraq war, Iraq’s Saddam Hussein orders the bombing of the Iraqi Kurdish town of Halabja with chemical bombs. The bombing, which kills about 5,000 people, is part of Saddam’s Anfal campaign designed to eradicate Iraq’s Kurds." </cite>Middleeast Issues

Saddam was such a nice guy,,,

<cite>Saddam Hussein</cite>

<cite>Full name Saddam Hussein al-Majid al-Tikriti. AKA 'Great Uncle', AKA 'Lion of Babylon', AKA 'Lion of Iraq', AKA 'Beast of Baghdad'. Saddam translates to 'One Who Confronts'.</cite>

<cite>Country: Iraq.</cite>

<cite>Kill tally: Approaching two million, including between 150,000 and 340,000 Iraqi and between 450,000 and 730,000 Iranian combatants killed during the Iran-Iraq War. An estimated 1,000 Kuwaiti nationals killed following the Iraqi invasion of Kuwait. No conclusive figures for the number of Iraqis killed during the Gulf War, with estimates varying from as few as 1,500 to as many as 200,000. Over 100,000 Kurds killed or "disappeared". No reliable figures for the number of Iraqi dissidents and Shia Muslims killed during Saddam's reign, though estimates put the figure between 60,000 and 150,000. (Mass graves discovered following the US occupation of Iraq in 2003 suggest that the total combined figure for Kurds, Shias and dissidents killed could be as high as 300,000). Approximately 500,000 Iraqi children dead because of international trade sanctions introduced following the Gulf War."</cite>Humanrights Org

"during an appearance on "Larry King Live" back in July 2003, the former president said: <strong>"When I left office, there was a substantial amount of biological and chemical material unaccounted for.</strong>"Bill Clinton

<cite>"When Clinton was here recently he told me he was absolutely convinced, given his years in the White House and the access to privileged information which he had, that Iraq possessed weapons of mass destruction until the end of the Saddam regime."</cite>Portuguese Prime Minister Jose Manuel Durao Barroso.

<cite>"You Know, In 1991, I Was One Of Those Who Put Partisanship Completely Aside And Supported President Bush At That Time In Launching The Gulf War. And In That War, We Saw How Saddam Had Threatened His Neighbors And Was Trying To Get Nuclear Weapons, Chemical Weapons, And Biological Weapons. And We're Not Going To Allow Him To Succeed." (CNN's "Larry King Live," 12/16/98)</cite>AL GORE

<cite>Sen. Clinton: "I Voted For The Iraqi Resolution. I Consider The Prospect Of A Nuclear-Armed Saddam Hussein Who Can Threaten Not Only His Neighbors, But The Stability Of The Region And The World, A Very Serious Threat To The United States."</cite> (Senator Hillary Clinton [D-NY], Press Conference, January 22, 2003)

Sometimes WAR is the only answer... There were over a hundred resolutions against Saddam dating back to before 1990.. He thumbed his nose at all of them.. He was actively seeking a Nuclear program.. Would you feel comfortable if he had of developed that program or simply purchased one or ten..

<cite>"The American authorities just informed us of their intention to remove the materials, but they never sought authorization from us," Gustavo Zlauvinen, head of the IAEA's New York office, told the AP.</cite>

<cite>Ivan Oelrich, a physicist at the Federation of American Scientists, said Tuesday that Iraq's low-enriched uranium could have yielded enough highly enriched uranium to make a single nuclear bomb - if it was the standard 3 percent to 5 percent enrichment level common in fuel for commercial power reactors.</cite>

<cite>Opponents of the Iraq war have long argued that there was no evidence that Saddam Hussein posed a nuclear threat. Though the existence of Saddam's nuclear fuel stockpile had been known to U.S. officials for years, neither the Bush administration nor the American media have done much to publicize the news.</cite>

<cite>During the 1990s, North Korea had little trouble circumventing IAEA inspectors, developing its own fully operational nuclear weapons program in defiance of a treaty signed with the Clinton administration."</cite>

"Whoever claims the right to redistribute the wealth produced by others is claiming the right to treat human beings as chattel."

-Ayn Rand

We won't rehash it. Some of it is a "personal" problem to me & did not require the world's policeman w/out any back up (unlike Daddy Bush's War). With all the concern for the deficit over healthcare.. Any Repubs ever figure out how to pay for this mistake? It's OK to kill w/ a chit in a fergin land but not make someone comfortable in the USA?

S. Lindsey's picture

so if you don't wish to continue.. I understand.. It's hard to argue a Losing argument.

"Whoever claims the right to redistribute the wealth produced by others is claiming the right to treat human beings as chattel."

-Ayn Rand

vamoon46's picture

I have to agree with Lindsey, Every body forgets the history. Clinton should have stoped this or acted while he was in office. Bush was not just standing up foe his father who was standing up for us, but he was also trying to protect us fro such things as 9/11. which Clinton had warning way in advance of that and should of stepped up to the plate and protected his country.Never the less Bush will always be every bodys punching bag because he like Regan had the guts to stand up for our country, I guess we should just lay down and let them take over this country they already have any ways, every day a part of freedom of choice gets taken away.Next there going to be able to tell you where you can pray, OH waite they already do don,t they?

Stand up for your beliefs but do not trample the rights of others to do the same

Hey Vamoo46- As you wallow in the wake of the unfunded school programs and lack of proper English, why don't you learn how to spell, and then come back and explain how folks like you and your offspring are to compete in the new world economy. You have no one to blame except yourself and those who dare to cut back taxes so that the education system is failing us all.

hutch866's picture

Maybe you can be so kind as to tell me when my school taxes were cut and by how much? I must have missed that momentous occasion.

I yam what I yam

Yup, you missed it. Ask Sonny PoorDoo.

hutch866's picture

The request was SHOW me where there was a Education tax cut. I guess you're not able too, huh? Yes, the state is paying less, yes I'm mad about it, but the reason is that the state is taking in less. Now you can prove me wrong, but I won't hold my breath.

I yam what I yam

Just check and see how much the state of Georgia has reduced its financial assistance to all local school districts. This is a smoke and mirror game that PoorDoo and his party play in their budget games. You on the understanding trail now?

Many Depts have taken reductions--there is no reason Education should not take its fair share. Why don't you ask parents to pick up the slack a little, might I suggest some personal responsibility here and don't look for the state or county to do it all? Obviously, many have become too comfortable with the Govt, either state or federal, taking care of all needs and services.

hutch866's picture

I understand perfectly, you can't show me a tax cut for education, you're all talk, no proof. You understand what I'm asking for? Show me the money.

I yam what I yam

That is the problem. There is no money. The state sucked it out, leaving the counties to fend for themselves. That is why each county is having to cut what it supported before, and why school districts are up the creek without a paddle, and why cities are wallowing in the same wake of a financial vacuum. It is what it is.

Get Smart's picture

The reason the state has less money than previous years is...

All good comments...but the post you replied to didn't really deserve a retort.

We won't rehash it. Some of it is a "personal" problem to me & did not require the world's policeman w/out any back up (unlike Daddy Bush's War). With all the concern for the deficit over healthcare.. Any Repubs ever figure out how to pay for this mistake? It's OK to kill w/ a chit in a fergin land but not make someone comfortable in the USA?
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