Don’t call it the Obama health care tax.
On Sunday, Health and Human Services Secretary Kathleen Sebelius clarified on CNN’s State of the Union that the proposal being considered in Congress to tax employer provided health care benefits was not endorsed by her boss. Obama had opposed such a tax during his candidacy; his opponent, Sen. John McCain had supported the plan.
But now that a similar plan is making its way through Congress, the White House wants taxpayers to understand that he’s not a fan of the proposal. No wonder since several recent surveys show an overwhelmingly opposition to taxing benefits. Sebelius did not, however, refer to the plan as a “deal breaker” leaving the door open for an Obama endorsement if Congress can’t come up with something better.
Obama favors a cap on tax exemptions for those making more than $250,000 per year. This is the same plan that he proposed months ago – a plan which Sen. Max Baucus (D-MT) then opposed, questioning whether the plan would work.
It’s no surprise that the GOP joined with Dems in rejecting Obama’s proposal even though the Obama administration tried to play the “Reagan card” by pointing out that the caps would bring limits back to the Reagan years. The GOP opposes any cap on exemptions and instead, as blogged earlier, proposes a new tax on the benefits of the most expensive employer-provided health insurance plans, the so-called Cadillac plans. Sen. Lamar Alexander (R-TN) is one of the most vocal supporters of tweaking tax benefits for Cadillac plans, possibly in conjunction with a plan that would give employees cash to buy their own private insurance.
So let me sum up… The GOP said yes to taxing health care benefits in fall, and the Dems said no. Then the Dems said yes – and no – while several key members of the GOP said no. Obama keeps saying no – but not “deal-maker” no. And the GOP decides to go back to the plan from earlier.
Anyone getting the real sense, as Sen. Judd Gregg (R-NH) that the chances of passing a health care reform bill before the August break are “very unlikely”? Hands up… Yeah, that’s what I thought.
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