Health Care Reform: What Was Billed As “The Largest Middle Class Tax Cut” Actually “Will Go Directly To Insurers”

PRESIDENT OBAMA: “It’s Also Important To Note That The New Health Reform Law Includes The Largest Middle Class Tax Cut For Health Care In History, and once it’s implemented; millions of Americans will finally be able to purchase quality, affordable care and the security and peace of mind that comes with it.” (President Obama, Weekly Radio Address, 4/10/10)

IRS: “The Health Care Subsidies Will Go Directly To Insurers, Not Taxpayers” “The IRS does a poor job of managing social programs. … In tax year 2006, the latest year available, IRS made $10 billion to $12 billion in erroneous EITC [Earned Income Tax Credit] payments, according to a study by the Treasury Department’s inspector general. IRS officials argue that the two programs are vastly different. The health care subsidies will go directly to insurers, not taxpayers, giving individuals little incentive to cheat, says IRS spokesman Frank Keith.” (“IRS Lacks Clout To Enforce Mandatory Health Insurance,” USA Today, 4/29/10)

SEN. DICK DURBIN (D-IL): “Wall Street Hates This Idea Like The Devil Hates Holy Water.” (Sen. Durbin, Congressional Record, S.2690, 4/27/10)

Wall Street: “The Biggest Beneficiaries Of Reform Will Be Wall Street Itself”

LLOYD BLANKFEIN, Goldman Sachs CEO: “I Listened To A Speech By Barack Obama At Wall Street, And One Of The Points He Made Resonated With Me Because I’d Said It Myself. He Said That The Biggest Beneficiaries Of Reform Will Be Wall Street Itself.” (Homeland Security & Government Affairs, Permanent Subcommittee On Investigations, U.S. Senate, Hearing, 4/27/10)

VIKRAM PANDIT, Citigroup CEO: “A Firm Advocate Of Strong Regulatory Reform.” “Citigroup CEO Vikram Pandit has pledged support for financial regulatory reform under consideration by Congress, according to a letter obtained by The Hill. Change is needed to create robust markets, investor confidence and trust in the financial system, Pandit wrote President Barack Obama shortly after his speech in New York pushing for reform. After two trying years for Citi and other financial institutions, Pandit said he has been ‘a firm advocate of strong regulatory reform.’” (“Citi Chief Supports Financial Reform Bill,” The Hill’s On The Money Blog, 4/27/10)

•    “The Day After His Speech, Citigroup Chief Executive Vikram Pandit Wrote To Obama Pledging To Support Key Reform Principles.” (“Citigroup’s Vikram Pandit Pens Letter To White House,” Politico, 4/27/10)

J.P. MORGAN: “‘It’s Obvious We Need To Reform Our Financial System. JPMorgan Has Supported Most Of The Things That Came Out,’ Jamie Dimon Said As He Accepted An Award Thursday From The Executives’ Club Of Chicago. ‘We Agree With 80 Percent. We Might Be Right On The Other 20 Percent.’” (“Jamie Dimon ‘80 Percent’ In Favor Of Reform Plan,” Chicago Tribune, 4/22/10)