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Obama's Plan Includes Medicare Tax on Capital Gains and High Fees on Companies Like Pfizer Inc and Merck

Obama Endorses Medicare Tax, More Drugmaker Fees (Update4)

By Ryan J. Donmoyer and Nicole Gaouette

Feb. 22 (Bloomberg) -- President Barack Obama, seeking to break an impasse over health-care legislation, proposed a plan that includes the first Medicare tax on capital gains and higher fees on companies such as Pfizer Inc. and Merck & Co. to help cover millions of uninsured Americans.

The measure, which also scales back a tax on high-end health benefits that was opposed by organized labor, marks a reversal from months of leaving the legislation’s details largely up to congressional Democrats, who have failed to agree on a plan. Obama relied mostly on a Senate bill passed in December, with elements of a House version passed in November.

The plan to cover 31 million uninsured Americans presents a challenge to Republicans before a Feb. 25 meeting at Blair House, across the street from the White House. Obama invited leaders from both parties and called on Republicans, who have almost universally opposed the Democratic plans, to offer their own “comprehensive bill” to extend coverage and reduce costs.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aTtceUF35Ybw

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