Obama Willing to Consider Tax on Employer-Paid Health Benefits

[red states rule]

During the campaign, Obama trashed McCain for this idea - now he is taking credit for it - and is thinking about doing it

How much moremoney do the ems want from us, and how long are we going to let them get away with it?

How is that hope and change going?


Updated 7:58 p.m.
By Michael D. Shear and Ceci Connolly
President Obama, in a pivot from some of his harshest campaign rhetoric, told Democratic senators yesterday that he is willing to consider taxing employer-sponsored health benefits to help pay for a broad expansion of coverage.

Senate Finance Committee Chairman Max Baucus (D-Mont.) said Obama expressed a willingness to consider changing the existing tax exclusion. The decision would probably anger liberal supporters such as labor unions, but such a tax change would raise enormous sums of money as Congress and the White House are struggling to find the estimated $1.2 trillion needed to pay for health-care reform over the next decade.

"Yeah, it's something that he might consider," Baucus told reporters after the meeting between Obama and Democratic lawmakers. "That was discussed. It's on the table." Obama had summoned about two dozen senators to the White House to keep up the pressure to enact a comprehensive health-care overhaul this year.

White House officials moved quickly to clarify that taxing the health insurance provided by businesses is not Obama's first choice, but aides refused to rule out the possibility.

"The president made it clear during the campaign that he has serious concerns about taxing health-care benefits, and he has introduced his own revenue proposal, which he reiterated in today's meeting," spokesman Reid Cherlin said.

Obama instead urged senators to reconsider his proposal, which would raise federal revenue by reducing itemized deductions such as charitable contributions and mortgage payments for the wealthiest Americans, according to one adviser in the meeting. Obama included that idea in his budget, reporting that it would raise $317 billion over 10 years, a sizable "down payment" on the cost of health-care reform. But Congress immediately labeled the proposal a non-starter.

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http://voices.washingtonpost.com/44/2009/06/02/obama_health_overhaul_necessar.html?wprss=44

[avatar4321]

Is there anything he wont consider taxing?

[Little-Acorn]

President Obama, in a pivot from some of his harshest campaign rhetoric, told Democratic senators yesterday that he is willing to consider taxing employer-sponsored health benefits to help pay for a broad expansion of coverage.
If he does that, then the reason for getting health care from your employer (it is not taxed), will vanish.


such a tax change would raise enormous sums of money as Congress and the White House are struggling to find the estimated $1.2 trillion needed to pay for health-care reform over the next decade.

How much per year will the Federal government get, after everyone stops getting health care insurance from their employer, and starts getting it through an normal insurance broker like every other kind of insurance?

Answer: Zero.

Of course, the liberals never take into account, the idea that what they do might change what their subjects might do. Even when the effect can be reasonably expected to be massive.

Have you ever wondered why the guy down the street gets his health insurance from Joe's Landscaping and Lawnmower Repair Shop, rather than from Blue Cross or United Healthcare or some other company that specializes in health insurance? Does he think Joes' Lawnmower Shop is better at providing health insurance than the health insurance companies?

Of course not. He gets it from Joe's because the govt doesn't tax him on the $300+/month that Joe's spends for it, while it WOULD tax him if Joe's paid him that $300+ and he bought the same insurance himself.

Obama is proposing to eliminate that advantage. If he follows through on it, he might be surprised just how much else he inadvertently eliminates.

It's a silly leftover from World War II, when the govt imposed wage freezes on most businesses, and they couldn't compete for good employees by offering higher pay. So they invented the concept of "benefits" instead, and started offering "free" health insurance, pensions, etc. Then they got government to not tax those "benefits". Later the war ended, the freezes went away, but the silly custom of offering "free" benefits continued.

Actually I wouldn't mind if govt eliminated this tax advantage. As long as they then lowered taxes generally, to make up for it (hah - that'll be the day!). Then I wouldn't lose money by purchasing my own insurance directly, and I wouldn't have to change insurers every time I changed jobs.

[red states rule]

Is there anything he wont consider taxing?

The list is hort - if not blank

Yet Obama's supporters still think someone else will pay the added taxes - and they will get a free ride

[Monkeybone]

gotta pay for that government helathcare somehow. and since we are being so selfish with the insurance that we work for....why not spread the wealth? hahaha

[emmett]

I hope Government health care will be more succesful than Government Mototrs. Obama's first venture was VERY unsuccesful.

[Monkeybone]

I hope Government health care will be more succesful than Government Mototrs. Obama's first venture was VERY unsuccesful.
oh now come on emmett. gotta give them at least some time before we state the obvious. :beer:

[red states rule]

I hope Government health care will be more succesful than Government Mototrs. Obama's first venture was VERY unsuccesful.

Or the US Post Office, Social Security, or Medicare

[Monkeybone]

Or the US Post Office, Social Security, or Medicare

i read today that Obama is going to cut more money from Medicare and Medicaid. Think that is just an extra "nudge" to make the switch over from covering elderly to all?

[red states rule]

So according to the left, they are outraged over the increasing cost of health ins - now they want to tax us on it as well?

Where are all the Obama supporters on this topic?

[emmett]

So according to the left, they are outraged over the increasing cost of health ins - now they want to tax us on it as well?

Where are all the Obama supporters on this topic?


Well.......they sure as hell aren't here are they?


I wonder how many people will speak out against his idea to cut Medicare and Medicaid. THAT is not in line with his campagne promises. But then CHANGE is his motto. I got an idea they are not going to like some of his new changes either. I can't wait till 2011 when he starts answering some of these questions.

Here's one. Mr. President, how many days did your first government venture last? You know....Government Motors! Am I recalling correctly sir that they were bankrupt within 60 days afdter you became involved with your "plan for recovery" and had invested billions of tax dollars into that black hole.

[red states rule]

Well.......they sure as hell aren't here are they?


I wonder how many people will speak out against his idea to cut Medicare and Medicaid. THAT is not in line with his campagne promises. But then CHANGE is his motto. I got an idea they are not going to like some of his new changes either. I can't wait till 2011 when he starts answering some of these questions.

Here's one. Mr. President, how many days did your first government venture last? You know....Government Motors! Am I recalling correctly sir that they were bankrupt within 60 days afdter you became involved with your "plan for recovery" and had invested billions of tax dollars into that black hole.

It is becoming clear that all of Obama's promisies, policy statements, beliefs, and core principals all come with expiration dates

Or it is all the fault of Pres Bush

[PostmodernProphet]

okay, time to take my proverbial stroll down the tree limb....

I think taxing health care benefits is an essential step to restoring the link between voter and the cost of health care....the majority of people don't really care if health care is expensive, because their employers provide it to them as a benefit.....