Max Baucus wants to tax your health insurance benefit

Because this was such a vote getter for McCain:
Democrats may tax health benefits

Senator Max Baucus of Montana, chairman of the Senate Finance Committee, recently issued an 89-page health policy paper that many see as an important Democratic blueprint for health reform. His paper raises the possibility of capping tax breaks for health insurance premiums based on income, value of health benefits, or both.

Baucus said Obama's and Biden's relentless campaign rhetoric against McCain for being willing to "tax insurance" did not mean the benefit was off-limits in the reform process. "We're not going to eliminate the exclusion, but we're certainly going to discuss it," said Baucus. "The campaign is over. Barack Obama is our president; we have a majority in the House and a Democratic majority in the Senate. But the goal is to work together. I think we're going to have to use some of Senator McCain's suggestions in order to get an agreed-upon result."

But Democrats could face serious political challenges if they try to scale back the benefit. Unions that are deeply invested in the employer-based system are wary of any changes since employers provide insurance to the vast majority of their members. Business groups are also extremely cautious. And after Obama and Biden so clearly campaigned against "taxing healthcare," Democrats could leave themselves vulnerable to accusations of hypocrisy.

"Once the issue was delineated in the campaign, it's hard to go back because people will remind you that the standard-bearer of the party took a position on this issue," said Robert Blendon, a professor of health policy and political analysis at the Harvard School of Public Health.

"That's one of the things that has to be taken into consideration," said Senator Kent Conrad, a Democrat from North Dakota and chairman of the Senate Budget Committee.

Do Max Baucus and Kent Conrad's constituents know that they want to tax their health benefits? Maybe someone should tell them.

Comments

Do they do this solely for the lobbyist money?

Or mostly just because they can?

"Where else ya gonna go?"

"Capitalists on the way up, communists on the way down." -- Stirling Newberry

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