Skip to comments.Democrat looking at taxing health benefit
Posted on 03/03/2009 7:52:02 PM PST by anniegetyourgun
WASHINGTON (Reuters) - A senior Senate Democrat said Tuesday he would consider taxing U.S. workers on their employer-sponsored health insurance to help pay for extending coverage to millions of uninsured Americans.
"I think that tax provision should be on the table," said Senate Finance Committee Chairman Max Baucus, who will play a major role in writing the legislation to revamp the U.S. healthcare system as promised by President Barack Obama.
"It's too aggressive. It skews the system," he said of the tax benefit.
(Excerpt) Read more at uk.reuters.com ...
TAX, TAX, TAX and most of Obama’s henchpersons don’t pay them.
Wasn’t this what they accused McPain of proposing?
More stimulus for the non producers. Tax the producers even on the air they breath and give it to the democrat voters, the non producers.
With a whimper...
Be sure and feature that brilliant idea on your campaign posters when you run for your next term, Max. I’m sure the voters in Montana will be impressed.
I think that the government electives should have the same health and retirement that the common folk have. If these SOBâs had to pay for something in their lives then maybe they would not be so willing to raise taxes on us.
Here's how Obammie the Commie pays for his spending. If this passes, overnight, we will all have about 25% added on to our taxable income.
Get ready to ‘lock and load’ laddies!
Yep. But it probably won’t be necessary...if you socialize medicine, the employers will no longer offer group plans. Why should they when they can off it onto the taxpayers via government.
People of Montana, wake up.
What the hell’s wrong with you?
From the producers to the parasites. I’m so proud to do my patriotic duty and keep forking over more and more and more.
Of course, this would have the effect of encouraging millions to abandon employer provided plans and sign up for the “free” gubment health care.
The USS Radical Agenda is proceeding at flank speed.
Why would an employer offer health care to his employees? Is this the way they intend to get everyone into the Government system?
Since it appears most of those left with lucrative retirement pensions and heath benefits are government employees....Go for it.
These guys are bound and determined to become the minority party again. The hits just keep on coming.
Take your vitamins and exercise regularly.
In other words, do not get sick, my FRiends.
The sad part is that the Obama idiots will not even know that he is raising their taxes. They will see the drop in take home, and blame their employer and then demand more money. They won’t blame the people who are stealing their money.
And above all, don’t get old.
Pretty soon, not even working people will be able to afford their mortgages.
We need to tax the Senate and House on the actual cost of the myriad of benefits they receive while we are at it.
Less than 600 people ..... ruining our lives.
They think they are royalty....they think what’s ours is theirs.....
I’m sick of the articles saying things like “Obama to give $900 billion to rebuild Gaza”..... NO NO NO..... taxpayers being sapped for $900 billion ......etc.
When does the revolution start???
Didn’t the Dems eviscerate McCain for this idea during the campaign?
I think I’ll buy a juicer....while I can still afford one.
Obama spent MILLIONS of dollars in the Midwest running Radio ads saying this is what McCAIN wanted to do, and he WOULD NOT....
Yet again, THE MESSIAH HAS LIED!!!!
One more giant step towards revolution. At this point, I hope the fools keep it up. The faster we get this over with the better.
Might as well add garlic to that mix.
Not a chance, once everyone is dependent upon the Dems for everything. The deluded electorate we already have will never vote for the GOP because they’ll be told by the DEMS that the GOP wants to take it all away.....see social security flaps of the past.
I’ve been paying for my own insurance with after-tax money for years.
Always been a thorn in my side that some folks get a huge cash benefit, worth several thousand of dollars per year, completely tax free.
I also understand that Obama wants to do away with my HSA and the few tax dollars I save from that.
This is going to be a hoot.
The concept of employer-paid health insurance as a benefit of employment developed during the Second World War, when wages were frozed by executive order, so as to prevent a bidding war between employers fighting for the same pool of workers to put to work in war industries. Since the corporate managers were denied the right to offer higher wages as an incentive for badly needed workers, they turned to pensions, health and life insurance as non-wage incentives. Unions took advantage of this provision, and negotiated HUGE packages, to the degree that employers were forced to take over the whole cost of the insurance programs offered, and the arrangement was continued after the war emergency was over. Thus health benefits became tied to employment status, with the employee taking no responsibility whatsoever for protecting his own access to health services, a situation which was endorsed most heartily by the unions and their representatives in elective legislatures.
A crisis is a terrible thing to waste. Take advantage of every one that comes up.
Because it wasn't taxed as income it became a benefit provided by business. Frankly is should be taxed the same as income (from the employer's prospective). It is a loophole that has screwed up the entire health care system. Instead of health insurance being between the customer/payer and the provider it is between the employer and the insurance company with the provider and “customer” in the middle of never never land. If people purchased health insurance directly it would be portable, as in travel with them, regardless of where or if they are employed. The insurance companies would also have to please you instead of your employer which have different interests at stake. The insurance companies could also reward those individuals that use it less saving them money. Anything that the direct user of pays only a fraction of gets over used which increases the costs to everyone.
And if the government wants you to get health insurance they can make it tax deductible for the individual taking your employer out of the equation.
Very good points. I may be in a very small minority here, but I have always believed that an employer-paid medical insurance plan should be treated no differently under the U.S. tax code than a cash bonus, a company car provided for personal use, etc.
Health insurance should be between the insurance company and you, not your employer. The government has thrown the health care market out of whack via the tax code.
It appears that we agree.
For most of us our tax deduction would be as great as the taxable benefit, so it was a wash.
What Baucus proposes is simply taxing existing benefits with no tax deduction to offset the inequity.
These guys are trying to get blood out of turnips though ~ the Obama Depression has wiped out whatever income people might have to pay for these risky schemes.
Hmmmm....if this comes to pass, shouldn’t we have the option of voluntarily electing to forfeit our now taxed employer provided health insurance.....and go get it free like all the non-producers?
Actually, seems those getting free health care should be taxed for its value....
Remember, there were wage and price controls and a company couldn't just offer higher wages as an inducement ~ so health insurance was used.
Without this system we'd lost the war and you'd be in concentration camps where all the guards would be Democrat politicians.
Just like today!
Wage and price controls made a mess that we are still living with today.
Remember, the Democrats ran that war and they imposed their own peculiar ideas of what motivates people on friend and foe alike. Basically the Democrat theory was that American workers, given their heads, would crap on the country for a few bucks, just like the rich guys who hung around FDR.
Oh yeah, that’ll fix it. Ballooning health insurance costs, hours down, pay down, add more expense to the mix. Brilliant!
I interpreted “Without this system we’d lost the war ...” to include how untaxed health insurance came about - price and wage controls. Meaning the root of health insurance provided by employers was due to government interference in the markets. I don’t think I misread that. Now I definitely could have misinterpreted any intended sarcasm in what you said.
Not soon enough I’m afraid
In some states employers are mandated to pay for health insurance of its employees (Hawaii for example).
Another regressive tax out of the democrats.
Yes, and with the added benefit of keeping werewolves away!
The birth of Kaiser Permanente (for example)....