Skip to main content

Almost too easy: the President inches toward taxing health-care benefits....

... despite the fact that he roasted Senator McCain for suggesting the same thing during the campaign.

From the NYT:

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.

At the time, even some Obama supporters said privately that he might come to regret his position if he won the election; in effect, they said, he was potentially giving up an important option to help finance his ambitious health care agenda to reduce medical costs and to expand coverage to the 46 million uninsured Americans. Now that Mr. Obama has begun the health debate, several advisers say that while he will not propose changing the tax-free status of employee health benefits, neither will he oppose it if Congress does so.

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.”


No new taxes ("not a penny") on anybody but the top five percent of the wealthiest Americans, right?

Where have I heard that one before?

But here is how it will be spun:

1) Congress will have brought him this option, which he will reluctantly accept on behalf of the uninsured millions of Americans. He will tell us that it makes us all healthier.

2) Policy wonks will explain that this is only necessary as an interim measure while we separate health-care from the place of employment; once we have single-payer health care the necessity for this new tax will go away. It's a temporary, transition thing.

3) Then they will wryly observe that President Obama's critics want it both ways: they accuse him of dangerous, profligate deficit spending, but when he tries responsible strategies to pay for his programs, all they do is say, "No!" without contributing any better ideas to the conversation.

I'm thinking of copyrighting these responses.

Comments

Delaware Watch said…
I bet he doesn't do this. In fact, I think there is little chance that he will.
Dana,
You may well be right: all other issues aside I think it would be political suicide.

However: if it happens, I think he has to present himself as being "forced" or "persuaded" into it.

Popular posts from this blog

A Libertarian Martin Luther King Jr. Day post

In which we travel into interesting waters . . . (for a fairly long trip, so be prepared) Dr. King's 1968 book, Where do we go from here:  chaos or community? , is profound in that it criticizes anti-poverty programs for their piecemeal approach, as John Schlosberg of the Center for a Stateless Society  [C4SS] observes: King noted that the antipoverty programs of the time “proceeded from a premise that poverty is a consequence of multiple evils,” with separate programs each dedicated to individual issues such as education and housing. Though in his view “none of these remedies in itself is unsound,” they “all have a fatal disadvantage” of being “piecemeal,” with their implementation having “fluctuated at the whims of legislative bodies” or been “entangled in bureaucratic stalling.”   The result is that “fragmentary and spasmodic reforms have failed to reach down to the profoundest needs of the poor.” Such single-issue approaches also have “another common failing — ...

Libertarian National Committee Deathwatch Part 1

As the LNC continues to lurch towards collapse, with the latest news of mass layoffs at HQ, I've decided to begin tracking those things leading the national party to irrelevance, even as state and local parties gain power. As news, rumors and rhetoric break out, I shall chronicle them in this ongoing series at Delaware Libertarian. Organizations approaching failure have a number of characteristics. One of the most striking is renunciation of their purpose and effort to reinvent themselves as a "me-too" provider of services in the marketplace. In this, the LNC has been on a collision course with destiny for a while now. Recently, for example, it hired Republican Party web site developer TerraEclipse to redesign the LNC web site . Terra created a web site very similar to those of the clients it brags most about -- far-right Republican conservatives like Tom McClintock and BJ Lawson. A quick look at the web site they built for the LNC is instructive. The tagline on the ...

Soda tax debate reveals fundamental progressive assertions about your lack of individual rights and the "responsiblities" of the State

I thought it would be at least amusing to use the Delawareliberal comments as sub-headings regarding each category of what is wrong with the proposed tax on sodas and juice drinks. But there are so many different little strands of each comment that it would be impossible to pull them all out. So, instead, I'm going to let you read them in more or less the order they appeared, and note the assumptions. pandora: I’m perfectly okay with taxing sodas and juice drinks. Mainly because they’re total crap, and one of the main reasons our country’s children are overweight. They are also dirt cheap. Assumptions here: (1) Because "I" am perfectly okay with a new tax it should be imposed on everybody; (2) it is the government's responsibility to keep children from being obese; (3) the cheapness of the product to be taxed justifies charging people more for it. John Manifold: Soda fattens your kids [and you and your husband], shortens their lives, costs more than water [a...