Tax expansion could pay for healthcare overhaul

Democratic congressional leaders are considering a new strategy to help finance their ambitious healthcare plan -- applying the Medicare payroll tax not just to wages but to capital gains, dividends and other forms of unearned income. The idea, discussed Wednesday in a marathon meeting at the White House, could placate labor leaders who bitterly oppose President Obama's plan to tax high-end insurance policies that cover many union members. It could also help shore up Medicare's shaky finances, and the burden of the new tax would fall primarily on affluent Americans, not the beleaguered middle class. But the concept also carries political risks: Many older Americans, one of the nation's most potent voting blocs, could see their tax bills rise because they often depend on savings and investment income in retirement...read more