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Squeezing the Turnip

According to one adage, when people say that you can't get blood out of a turnip, it means that you cannot get something from a person, especially money, that they don't have. Well, Congress continues to squeeze the rich in order to redistribute income.

The study, released yesterday, says the recently passed health care reform bill “takes (an) additional $61.2 billion from the top 1% of families on (the) income spectrum,” according to the Tax Foundation’s press release. It goes on to say:

“The health care reform bill signed into law by President Obama would take an additional $52,000 on average from families in the top 1 percent of the income scale -- on top of the existing income redistribution of roughly $485,000 from those families under current policies, according to a new Tax Foundation report. Families earning an average income of $23,600 stand to benefit the most, by about $2,000 per family.

“As a group, the top 1 percent will lose the most -- an additional $61.2 billion, while the income group that gains the most - families in the 10th-20th market income percentile -- will receive an additional $37.4 billion.

“Tax Foundation Fiscal Fact, No. 222, "Health Care Reform: How It Redistributes Income," summarizes the latest findings of the Tax Foundation's ongoing "fiscal incidence" project, which is designed to gauge income redistribution of U.S. fiscal policies by measuring the effects of tax and spending policies.”

The report, available online, describes who benefits from the income redistribution this way:

“Overall, we estimate that as a result of the health care reform, the top 1 percent would go from earning 14.7 percent of post-redistribution income to around 14.35 percent of post-redistribution income.

“This income will be redistributed, not mostly to the lowest income group, but to the lower-middle income groups. The lowest income group gains little because most of the families already receive Medicaid and/or Medicare benefits. Families in those second and third deciles (10th percentile through 30th percentile) will see an average increase in their income redistribution of around $2,000.

“Middle- and upper-middle income groups (50th percentile through 90th percentile) would also be slight benefactors of the bill if not for corporate tax increases and the fees imposed on insurance companies, drug makers and medical device manufacturers . . . .”

Stealing from Peter to give to Paul. Well, at least Paul will be happy.

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