“With President Obama’s plan to tax the rich to pay for health care facing deep skepticism on Capitol Hill, key lawmakers are pressing a different way to raise money: taxing the health benefits workers receive from their employers.
Since companies began offering group health insurance on a large scale during World War II, the value of that benefit has never been counted as income, reducing workers’ taxable earnings by an average of $9,000 a year for family coverage.
In recent weeks, however, Sen. Max Baucus (D-Mont.), chairman of the tax-writing Finance Committee, has repeatedly advocated changing tax laws to include employer benefits, arguing that it makes sense to fund the health-care changes by sucking cash out of the existing system. Meanwhile, 13 other senators — from both sides of the aisle — have signed on to a plan for universal coverage that includes a tax on employer-provided benefits.
“I think it’s extremely important from a credibility standpoint to show the American people that you’re making savings in the enormous sums now being spent on health care before you go out and ask them for billions of dollars more,” said Sen. Ron Wyden (D-Ore.), one of the sponsors of that proposal. “And I don’t think I’m the only senator who feels that way.”
Amazing. Just the beginning folks. They’ll tax breathing if they can get away with it. I was on McCain butt for suggesting it last year as well. Just another point for conservatives to make for 2010. By that time Americans will have had enough of Democrats picking their pockets.
Technorati Tags: Democrats, Healthcare, Taxes
3 Responses
retire05
March 12th, 2009 at 8:03 pm
1And who will this hit the hardest? The middle class that Obama is always yapping about, of course.
And how will an employee be taxed? Will companies have to figure out the compensation cost for say, each employee? Single employees have a smaller compensation, health care expense wise, than the worker with a covered spouse and three kids. And what happens when a company tells its employees that it is going to benefit “average” so the single guy winds up paying as much as the family man with four covered dependents? Can you say lawsuits?
This is a stupid idea. But with the push for “universal” health care from our out-of-touch administration, I look for companies to start telling unions they will no longer provide health insurance and will give monetary compensation so that the employee can buy their own. I have it from reputable resourses that ATT and the CWA are going to battle over health insurance in their contract negotiations this year. ATT provides excellent insurance to all employees but that could rapidly come to a schreeching halt if Obama gets his health plan.
Testing Blog » Blog Archive » Democrats Want to Tax Your bHealth Care/b by Macsmind
March 13th, 2009 at 2:34 pm
2[...] original here: Democrats Want to Tax Your bHealth Care/b by Macsmind View admin’s Profile Subscribe via RSS RelatedBookmarksTags [...]
Get Ready, Democrat’s Plan to Tax Your Health Care is Gaining Ground by Macsmind
November 4th, 2009 at 11:59 pm
3[...] I warned you, now it’s getting closer to reality. In the latest effort at political suicide, Democrats are looking for ways to supplement those who have not with your paycheck. “WASHINGTON – House Democrats drafting health care legislation are considering slapping an unspecified financial penalty on anyone who refuses to purchase affordable health insurance, officials said Monday. [...]
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