The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Democrats move to tax health benefits – Flashback Obama, “If McCain is elected your health benefits will be taxed for the first time in history.”

Posted by iusbvision on March 13, 2009

Remember this from the campaign? USA Today:

McCain’s health plan was distorted, in turn, by Obama.

“Your health care benefits will get taxed for the first time in history,” Obama warned voters in attacking it. He often leads voters to think that’s the full story. Hardly.

Today:

Workers’ Health Benefits Eyed for Taxation
Revenue Would Fund Expansion of Coverage

By Lori Montgomery
Washington Post Staff Writer
Thursday, March 12, 2009; Page D01

With President Obama’s plan to tax the rich to pay for health care facing deep skepticism on Capitol Hill, key lawmakers are pressing a different way to raise money: taxing the health benefits workers receive from their employers.

Since companies began offering group health insurance on a large scale during World War II, the value of that benefit has never been counted as income, reducing workers’ taxable earnings by an average of $9,000 a year for family coverage.

In recent weeks, however, Sen. Max Baucus (D-Mont.), chairman of the tax-writing Finance Committee, has repeatedly advocated changing tax laws to include employer benefits, arguing that it makes sense to fund the health-care changes by sucking cash out of the existing system. Meanwhile, 13 other senators — from both sides of the aisle — have signed on to a plan for universal coverage that includes a tax on employer-provided benefits.

UPDATE – The obligitory Sunday morning talk show non-denial denial. 

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