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Schumer Likes the Idea of a Windfall Profits Tax on Health Insurers

EXCLUSIVE -- Three Democrats on the Senate Finance Committee --Charles E. Schumer (N.Y.), Robert Menendez (N.J.), and Debbie Stabenow (Mich.) today are announcing an aggressive push to make HEALTH INSURES absorb AS MUCH AS $100 BILLION of the cost of reform. The idea has been kicking around quietly in meetings, and insurers are on a list of potential targets that have been floating around. But Schumer, one of the senior Democratic voices at the Capitol, is going at them head-on.

A top Senate Democratic aide: “If we really want to have a breakthrough to make it possible to pass this, we should go after these guys in terms of defraying the cost of the bill.”

The structure has not been set, but top possibilities include a fee based on their market share and what the aide calls “a flat percentage of their profits – basically a windfall-profits tax, like people propose on the oil industry, for health-care insurance.” Per the aide, this could raise “close to $100 billion if you did it in a very aggressive way.”

http://www.politico.com/politicopulse/0709/politicopulse39.html
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