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 ...
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....