Posted on 11/28/2010 12:07:23 PM PST by khnyny
Job-based health care benefits could wind up on the chopping block if President Barack Obama and congressional Republicans get serious about cutting the deficit.
Budget proposals from leaders in both parties have urged shrinking or eliminating tax breaks that help make employer health insurance the leading source of coverage in the nation and a middle-class mainstay.
The idea isn't to just raise revenue, economists say, but finally to turn Americans into frugal health care consumers by having them face the full costs of their medical decisions.
Such a re-engineering was rejected by Democrats only a few months ago, at the height of the health care overhaul debate. But Washington has changed, with Republicans back in power and widespread fears that the burden of government debt may drag down the economy.
"There is no short-term prospect of enactment," former Senate Majority Leader Tom Daschle, a leading Democratic adviser on health care. "However, in a tax reform (and) deficit reducing context in the long term, the prospects are much better," said Daschle. He opposes repealing the tax break by itself, but says he would be "willing to look" at it with other changes that improve access to quality health care while reducing costs.
(Excerpt) Read more at kansascity.com ...
What is clever (actually rather transparent) is that the Democrats will try to blame the Republicans (as seen in this article) for ultimately destroying middle class health care. The reality is that both political parties probably see this as the end game - both government and corporations win. The big trick will be to get this accomplished. The only losers are the patients.
Actually ending the tax break is a good idea. People should pay for their own health care and know how much its worth. Right now most people never see or care about the final bill, thanks to insurance.
Please - live up to your principles and give up your current insurance coverage. You have my permission to pay out of pocket for all of you and your family’s health care bills - good luck.
I don’t have any... and for the rest of the country, even the bare bones insurance they now have may not be worth the hassle of keeping.
Mike
No - they’re proposing to get rid of the tax break for employer-provided health insurance.
Unions, particularly teacher unions, want to retain this tax sheltered benefit.
As unions push their members’ salaries and benefits to excessive (obscene and inefficient) levels, their members find themselves in higher tax brackets.
One way to shelter them from added taxes is to hide real income in non-taxed benefits such as health care benefits.
A few years ago, CA teachers unions had the audacity to propose that the Sacramento Assembly pass a tax law that exempted teachers from a certain percentage of State Income taxes, “just because” they ...were teachers.
As you can imagine, that “preferential” (unequal & unlawful) proposal failed - dropped like a lead balloon.
Khnyny, I don’t think the end game here is nationalized Health Care. At least not this time. The Republican’s goal is stick it to Unions who have sheltered income via “Cadillac” Health care plans, The Dem’s goal to shelter Unions from taxes, so that that money can instead flow into Union dues, a.k.a. Democrat Party Campaign Contributions.
I agree with G.S.GOP - let’s have parity across all tax entities. It make get Rank & File Union members to re-think how the Rat Party is treating people who cannot afford high-end Health Care plans, nor the ‘High-end’ taxes they experience & must pay as a result!
Anybody who really thinks that will happen in Obama's Socialist States of America is doing way too many "recreational drugs".
This is just the government accelerating their "public option". The government will be making all of your medical decisions for you.
It make get Rank & File Union members to re-think...
=
It MAY get Rank & File Union members to re-think....
To my understanding, currently, employers do not have to pay taxes on monies they contribute to employee health care plans. The government wants that tax money which would create a huge burden on those companies who subsidize their employee health plans.
I guess RINO’s think we are taxed too little.
Mike
Leave them alone and they will make you pay taxes on your benefits.
What is 35% of a $600,000.00 health insurance bill?
Fire a couple of workers...
It’s all about power and control - there will be no options BUT the public option if this goes forward.
Most people in this country work for a living and their employers provide some form of health care which both the employer and employee pay into...so when Obama said “you can keep your current health care plan”, well, maybe not...
I’m with you. There cannot be health care reform without the individual’s involvement in cost containment.
The cure is the patient’s physical and fiscal responsiblity.
I pay 65% of my employees insurance.
The 35% they pay is before tax.
It amounts to $1,400 a month.
If the employee had to pay it would cost $1,890 a month.
That amounts to anywhere from 1/4 to 1/2 of their monthly
wages.
Brilliant idea.
Screw them out of what little they get and feed it to the
pigs in Washington.
Then as medical care gets too expensive for people to afford the Democrats will be able to push through single payer. Welcome to the National Health System.
I go for this. Right after ALL public employees give up taxpayer funded retirement and medical plans. Until then, no dice.
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