Dems at odds over paying for healthcare

WASHINGTON, July 10 (UPI) -- Senate Democrats have all but dismissed raising revenue to pay the $1 trillion, 10-year cost of sweeping U.S. healthcare reform legislation, insiders say.

A House panel is close to endorsing a sliding-scale surcharge beginning at 2 percent on taxpayers with incomes higher than $250,000 while backing off other potential revenue streams, including a tax on soda, and a payroll tax underwritten by employees and employers, The New York Times reported Friday.

Senators, meanwhile, reversed field on possibly taxing some employer-provided health benefits after Senate Majority Leader Harry Reid of Nevada and other party leaders voiced opposition. Senate negotiators reportedly were focusing on a plan that would tax the most generous employer-provided health plans -- those worth $25,000 or more a year -- as well as a modified limit on tax deductions proposed by President Barack Obama.

White House Chief of Staff Rahm Emanuel, who made two trips to Capitol Hill this week to discuss healthcare proposals with House Democrats, said Obama would prefer the legislation's costs be paid for within the healthcare system.

Sen. Kent Conrad, D- N.D., a key figure in negotiations, said senators were being deliberate in reviewing a full range of payment options.

"Time spent on reconnaissance is never wasted," Conrad told the Times.