American Morning

Sebelius: Possible tax on rich for health care

WASHINGTON (CNN) - More work is needed on proposed health care legislation to make sure that it doesn't add to the budget deficit, Health and Human Services Secretary Kathleen Sebelius said Sunday.

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/07/20/sebelius.getty.art.jpg caption="Health Secretary Kathleeen Sebelius said it may be necessary to tax the wealthy to pay for health care reform."]

Appearing on the NBC program "Meet the Press," Sebelius said a tax surcharge on wealthy Americans is "a legitimate way to go forward."

The taxes would start with people making $350,000.

She noted the tax surcharge provision in a House proposal was one of several options under discussion to help pay for overhauling the nation's ailing health system.

A final bill "will be paid for - it will not add to the deficit," Sebelius said of health care reform, which is President Barack Obama's top domestic priority.

Both the House and Senate are working on proposals that would create a government-funded public health insurance option intended to drive down costs of private coverage.

However, the nonpartisan Congressional Budget Office reported last week that the measures currently under consideration in both chambers would not pay for themselves, increasing the budget deficit.

Democrats pushing the health care bills argue the CBO analysis lacks the impact of cost-cutting measures under discussion for existing programs such as Medicare and Medicaid.

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What do you think? Should the government tax the rich to help pay for health care reform?