Obama open to taxing some health benefits

International Herald Tribune ^ | March 15, 2009 | Jackie Calmes and Robert Pear

[FocusNexus]

The Obama administration is signaling to Congress that the president could support taxing some employee health benefits, as several influential lawmakers and many economists favor, to help pay for overhauling the U.S. health care system.

At a recent congressional hearing, Senator Ron Wyden, an Oregon Democrat whose own health plan would make benefits taxable, asked Peter R. Orszag, the president's budget director, about the issue. Mr. Orszag replied that it "most firmly should remain on the table."

Mr. Orszag, an economist who has served as director of the Congressional Budget Office, has written favorably of taxing some employer-provided health benefits and using the revenue savings for other health-related incentives.

In television advertisements last fall, Mr. Obama criticized his Republican rival for the presidency, Senator John McCain of Arizona, for proposing to tax all employer-provided health benefits. The benefits have long been tax-free, regardless of how generous they are or how much an employee earns. The advertisements did not point out that Mr. McCain, in exchange, wanted to give all families a tax credit to subsidize the purchase of coverage.

[FocusNexus]

Gee, I was not aware that only people making over $250,000 are getting health benefits through their employer. Or could it be that Obama lied and he IS going to raise taxes on EVERYONE, despite his promises?

What a surprise!