Gephardt pushes health care plan
CONCORD, N.H. -- Representative Richard A. Gephardt jumped into the debate on middle-class tax cuts yesterday, saying his proposal to have the federal government pay 60 percent of all health insurance costs would provide a typical family an economic benefit three times larger than the tax cuts enacted under President Bush provide.
The Democratic presidential candidate, a Missouri congressman, has said he would repeal those tax cuts to pay for his health care proposal, which would cost more than $200 billion a year. Most of Gephardt's main rivals have said they would try to rescind the tax cuts only for those with higher incomes and have criticized Gephardt for advocating elimination of tax breaks for those with lower incomes.
Gephardt, speaking at the Pleasant View retirement community in Concord, said his plan would "help you out no matter what your status. It would help everyone in this room."
An independent analysis of his plan concluded that his refundable tax credit for health insurance would provide a $2,182 annual benefit for a family with an income between $31,000 and $50,000, and $3,086 for a family earning $50,000-to-$82,000. The Bush tax cuts provided $742 and $886, respectively, according to the analysis by Kenneth E. Thorpe, a specialist in health care financing at Emory University.
Under Gephardt's plan, which is far more costly and comprehensive than those offered by the other Democratic candidates, the federal government would reimburse employers and individuals for most health care costs. During a stop in Somersworth, Gephardt said his proposal would mean an extra $1 million in federal funds for the health insurance plan for that city's employees. For families already receiving coverage through their employer, he said, his plan would generate pay raises, better insurance coverage, or reduced costs for premiums.
According to Thorpe's analysis, Gephardt's proposal would generate an estimated 750,000 new jobs in the first four years and provide $101 billion in annual economic stimulus, much more than any other candidate's health plan.
Gephardt has proposed a number of potentially expensive new federal programs that would swell an annual budget deficit now projected at nearly $500 billion. But he said all his programs would create jobs, which, over time, would reduce the deficit by increasing tax revenues and shrinking demand for services.
The former House Democratic leader made the remarks during a four-city visit yesterday morning before heading back to Iowa, site of the Jan. 19 caucuses that will kick off the delegate selection process for the party's nomination. Gephardt also made stops in Portsmouth and Manchester.
At his first stop, The Golden Egg restaurant in Portsmouth, Gephardt spoke with patrons while they ate breakfast. He found a receptive audience from one couple, both undecided Democratic primary voters.
Frank Cook and Pat Remick, publishers of a real estate trade newsletter, said they pay $1,100 a month to insure their family of four. For them, the Gephardt plan would translate into a $7,900 annual benefit. "Health care costs are killing us," Remick said. "To us, that is the number one issue."
But they added they are not ready to commit to a candidate. 