If you thought that you really were going to get a tax cut under an Obama Administration, hold on to your wallet:
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.
Most U.S. workers with health insurance get it through their employers — 160 million of them — although recent surveys have shown that number is declining as businesses try to cope with the rapidly rising cost of insurance.
The employer-provided benefit is not taxed as income and critics say the tax break encourages workers to seek a more generous benefit package than they might want if it was taxed.
This was, you might recall, the very same proposal that Barack Obama attacked John McCain for making back during the Presidential campaign.
Now, it appears to be on the table after all.
And, as Bruce McQuain notes, if it does come to pass, even in some limited form, any “tax cut” that the average American will have gotten from Obama’s plans will see their taxes go up, possibly higher than they were before. Of course, considering that the Obama tax cut is only $ 13 a week, that won’t be too hard.
Once again, change we can believe in !