Taxing health benefits bad idea

If Barack Obama is looking for a shortcut to a one-term presidency, taxing health care benefits is it. Yet Obama aides are now signaling his willingness to do just that. They would use the trillions in new tax revenue to pay for health care coverage for the 46 million Americans who don't have any.

While universal coverage is an admirable goal, the solution isn't to more heavily tax the three-fifths of Americans under age 65 who are already struggling to pay for their own coverage.

Sunday, Obama adviser David Axelrod appeared on ABC's "This Week" where he declined to rule out extending the personal income tax to health care benefits. "One of the problems we've had in this town is that people draw lines in the sand and they stop talking to each other, and you don't get anything done."

That's true, but Obama has already drawn his line in the sand. During last year's presidential campaign, he repeatedly denounced Sen. John McCain's proposal to tax employer-provided health care benefits as "the largest middle-class tax increase in history."

McCain's own dubious plan was to tax the benefits, then give the money back to people to buy their own health care. Unfortunately, that idea would only have swelled the rolls of Americans left at the mercy of big insurance companies trying to buy exhorbitantly costly individual health care policies.

The numbers at stake here are not small. An employer may be spending $4,000-$10,000 per year for an employee's family health care policy. The idea Obama is now considering would add that to your taxable income.

So, in addition to paying for your own co-pays and deductibles, in addition to paying a share for Medicare and Medicaid coverage, wage-earning Americans would pay to cover those who are not covered.

There are two reasons many hard-working Americans don't have health care -- their employers don't offer it and they can't afford to buy it.

Obama and America would be better served by tackling this problem from either of those angles. First, we need to figure out why we pay more than any nation on Earth for health care outcomes that are mediocre at best. Second, we should enable, entice or otherwise force more employers to obtain coverage for their employees.

Obama also drew another line in the sand during the campaign, which he called a "firm pledge." He said families making under $250,000 would not see "any form of tax increase, not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

By taxing health care benefits, Obama would not only erase his promise -- his line in the sand -- but reveal his promises to be built upon nothing more than shifting sand.

editorialboard@sunjournal.com

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Displaying comments, from newest to oldest

Jabba's picture
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I wonder if lawmakers will

I wonder if lawmakers will exempt their own benefits from this taxation. How about that of their staffs? Hitler was a socialist too.

TROUTBUM's picture

Using the words of Gomer

Using the words of Gomer Pyle "Surrrpriiiize, Surrrpriiiize, Surrrpriiiize!!! If anyone is surprised about how this latest group of double talking political theives have gone back on their "promises" then those that are are also very ignorant. Sadly enough, this administration has another 3 plus years to destroy this country. At the rate they're moving, they'll get it done in one.

jchick's picture
verified

Is anyone really surprised?

Is anyone really surprised? Perhaps those who are new to American politics, maybe. But I have a hard time thinking of a single career politician who has actually remained true to their campaign promises. I'm sure there have been one or two, I just cannot come up with any names.

John A. Chick

"If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be." -- Thomas Jefferson in a letter to Colonel Charles Yancey (January 6, 1816)

Mac antSaior's picture
verified

It lies in the hearts of

It lies in the hearts of heroes dead,
It screams in tyrants’ eyes,
It has reached the peak of mountains high,
It comes searing ‘cross the skies.

It lights the dark of this prison cell,
It thunders forth its might,
It is ‘the undauntable thought’,

Mac antSaior's picture
verified

Great! So, once again my

Great! So, once again my taxes have to go up to pay for societal sloths! Don't you just love the Obama plan of "Oh, you can keep paying for your private plan. I just want you to pay for everyone elses free plan as well."

It lies in the hearts of heroes dead,
It screams in tyrants’ eyes,
It has reached the peak of mountains high,
It comes searing ‘cross the skies.

It lights the dark of this prison cell,
It thunders forth its might,
It is ‘the undauntable thought’,

Nancy1's picture

What gets me is how Obama

What gets me is how Obama was the darling of the media during the campaign. This paper did all that could be done to put him in an admirable light. Now the criticism begins, and the realization that his short sighted policies are bankrupting this country.

Gil's picture

I hate to say I told you

I hate to say I told you so....who am I kidding. I TOLD YOU SO!!!! The messiah you elected has proven time and again to be a liar and still the libs will defend this reprobate. He has broken promise after promise and this is just another on the list. No lobbyists on his staff? Broken. Allow five days of public comment by way of internet viewing before signing bills? Broken. Create a $3,000 tax credit for companies that add jobs? Broken. End income tax for seniors making less than $50,000? Broken. No more earmarks? Broken over 9,000 times!! Eliminate capital gains taxes for small businesses? Broken. And on and on. When will the buyers remorse really take place and what will have to happen for the useless idiots to have their "Saul on the road to Damascus" moment? I Hope He Fails.
Oh, and I told you so.
"A government big enough to give you what you want is strong enough to take everything you have." Thomas Jefferson

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