Why is the Obama administration floating the obviously terrible idea of taxing health benefits?

vastleft's picture



WTF?

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.

This plan has it all:

* The unpopularity of tax increases

* Hosing the middle-class

* Making the cost of health insurance even more onerous

* Distracting from the obvious advantages of single payer

No doubt, this is 11-dimensional chess of the grandmaster level, so what’s not to like?

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And, don't forget the "divide and conquer" aspect:

Toward the end of the article, this paragraph, followed by quote from SEIU's Stern saying he will want to see whole package before going against taxing health insurance benefits:

Organized labor, a pillar of the Democratic Party base, considers the benefits among the union movement’s historic achievements for the middle class. But a split could be developing between the manufacturing unions, which have negotiated rich benefit packages, and the growing service employees unions, which include many low-wage workers without generous benefits. (My emphasis)

DCblogger's picture

truly bizarre

this isn't even 2% less evil, this is the McCain plan, which just went down in electoral flames, why does it even get the time of day? Why isn't it taken off the table as not politically practical?

Truly our misledership holds us in contempt.

Why is Obama doing this? Bcz he can blame it on Congress, esp'ly

Baucus. This may be why he's tossing the actual legislation and language to Congress. The Blue Dogs and fiscal conservatives will come up with this kind of crap and The One can wash his hands of the bad shit, saying that he signs more in sadness than in joy, but that healt insurance must be reformed.

And it will be a bill for the insurers, not the people -- with just enough cover to say it benefits some of those uninsured. Lots of people will be forced to buy insurance which won't help them. But after the "reform" it will all be their fault.

The MCM* and even Dems would not have allowed Hillary Clinton to go back on her promises the way Obama is being given a pass.

*MCM--Mainstream Corporate Media

lambert's picture

Bingo

What you said:

Lots of people will be forced to buy insurance which won't help them. But after the "reform" it will all be their fault.

That's what the mandate's going to turn into, if we're not careful. Why else does anyone imagine the reformers have flipped in its favor?

First they ignore you, then they ridicule you, then they fight you, then you win. -- Mahatma Gandhi

8 Dem senators joined 19 Repubs in stating opposition to using

the budget reconcialtion process to expedite passage of climate change legislation, ie, essentially supporting Repubs filibustering to kill such legislation--or at least change it greatly.

I cannot imagine these same senators would not have the same qualms about using budget reconciliation (51 votes can pass the legisaltion, instead of requiring cloture vote first to get to a majority vote situation) for healthcare reform.

On Page One of the letter to Sens. Conrad and Gregg:

Robert Byrd (WV) (stikler for procedure, at least most of the time)
Blanche Lincoln(AR)
Carl Levin (MI) (he sure does surprise me sometimes)
Evan Bayh (IN)
Mary Landriieu (LA)
Ben Nelson (NE)
Bob Casey Jr. (PA) (he must have many, many consituents subject to air pollution)

On Page Two, Mark Pryor (AR)

Mostly predicable, but I didn't see Holy Joe's signature. Not needed at this time, but will surely vote with the Repubs on filibustering right. The title for the TPM piece, which sticks even when the title is edited, noted 41 senators against using budge reconciliation process. Wonder who talked about it but didn't want their names used....

Found the PDF at TPMDC, but read it earlier somewhere else--can't find. TPMDC's Elana Schor reports:

Budget reconciliation was used by George W. Bush and congressional Republicans to prevent Democrats from stalling both the 2001 and 2003 tax cuts. The opposition of nearly one-half of the Senate, however, means that President Obama's party will have little room to use the tactic as successfully as Bush's supporters did.

Filibuster-proofing the upcoming health care reform bill through reconciliation already has been ruled out strongly discouraged* by pivotal Democratic senators on the Finance Committee, Chairman Max Baucus (D-MT) and Jay Rockefeller (D-WV).

Democrats' reluctance to take advantage of their procedural arsenal to pass climate change and health care this year doesn't mean that both pieces of legislation would necessarily fall to filibusters. But it does mean that Republicans will have significantly more opportunities to insert pro-business provisions into these pivotal bills. (My emphasis)

Where are the LBJ's of yesterdyear? Of course, he could get bona fide moderate Republicans to vote for his civil rights legislation to make up for the Southern Dems who wouldn't. Now, precious few real moderate Repubs. But, oh, our conservative Dems!

gqmartinez's picture

Holy Joe

While he is not my favorite, he isn't nearly as bad as the bogeyman he's made out to be. At least not on many issues.

Only tyrants rig elections.

Randall Kohn's picture

Why, you ask? Because now is the BEST time.

They have many of us us broke and jobless, and all of us reeling and disoriented by the ascension of a fake Democrat to the presidency. Now is the time to follow up the bankers' seizure of most of our money with an insurers' seizure of the rest.

JFK has been shot, we miss him a lot
He always knew what to do

-- Philly Cream

Salmo's picture

Obama seems to think that he is starting from weakness

I can imagine a host of reasons for putting this on the table. All suggest that Obama thinks he is starting the health care reform process from a position of weakness. The optimistic take is that it's possible the concept is offered to see that it is dispatched early. There is value in undercutting one's opponent's plan early, leaving them little cover for opposition. Obama could also be conducting the political equivalent of a brush back pitch. He could be reminding the Villagers that the Republican alternative lost at the ballot box. The Washington Post this morning gave us the official Village take on the nation's governance: Brooks and Ignatius are now thoughtful centerists, and Obama is a radical. Making the right wing defend the indefensible for a while should make any actual change easier. Which brings my consideration of the alternative explanations to the pessimistic view. It's also possible this is to be the basis for legislation, and the Democrats in Congress are expected to work with basically a Republican bill to make it "bipartisan." After all, Obama is the guy who wants to prove his "responsibility" by reforming Social Security. The evidence showing which of these possible explanations is the plan will be found in the strength of White House and Congressional Democratic support.

gqmartinez's picture

The Clenis makes me cry

My question is: if this is the same as McCain's plan, does that mean Obama is 3-8% less evil than 5-10%? Too bad we can't use Bill Clinton's acknowledgment that single payer is a good idea instead of the crap Obama and the Dems are throwing out there.

Only tyrants rig elections.

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