By Jackie Calmes and Robert Pear
WASHINGTON - 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 health care system.
The proposal is politically problematic for President Obama, however, since it is similar to one he denounced in the presidential campaign as “the largest middle-class tax increase in history.” Most Americans with insurance get it from their employers, and taxing workers for the benefit is opposed by union leaders and some businesses.
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.
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Typical politician, Typical hypocrite. Back down on yet ANOTHER promise.
I'm not sure but I don't think this is a new idea. The firm for whom I worked [slaved] used to GIVE employees insurance benefits. About 6 years ago, employees started paying about 1/3 of the cost and talk was that benefits would be taxed.
ReplyDeleteThe thing is that he criticized McCain for suggesting it. Sure, first employees were given benefits, then they had to pay 1/3, which is significant if you are on the family plan, now an additional taxation on top of that. I wonder what's next?
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