Senators getting cold feet on taxing health benefits

July 7, 10:36 PMDC Republican ExaminerBill Dupray

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This is a big deal because taxing health benefits is the biggest possible piggy-bank the Dems can break to pay for ObamaCare. Without it, the whole thing may fall under its own weight. The Senators talked to constituents (or at least read some polls) over the Independence Day break and found, shockingly, that people don't like the idea of a huge tax increase.

From WSJ.

A Senate Democrat involved in negotiations on legislation to overhaul the health-care system said senators may be souring on a plan to tax some employer-provided health benefits.

Sen. Kent Conrad, D-N.D., said that public polls conducted over the July 4 congressional recess and reviewed by senators are causing lawmakers to have second thoughts about limiting the tax exclusion for employer health plans.

"It remains a significant option, but we're looking at other options," Conrad told a group of reporters Tuesday. "When you go out and ask people across the country, their initial reaction is, they don't like it." [Me - if he's surprised by their initial reaction, try slapping that tax on them. He'll really be shocked when he sees their final reaction, in the voting booth] . . .

In discussions prior to the July 4 break, senators had been leaning towards capping the tax exclusion for employer-provided insurance as a way to help pay for the costs of covering the uninsured, and also to help contain the growth of health-care costs. . . .

That plan would have taxed the value of health-care benefits that exceeded 110% of the benefit provided to federal employees, which would have affected plans worth more than $17,000 for a family of four.

"The exclusion issue is especially difficult," said Conrad. "Given input from the polling and from our colleagues, any prudent person would say, OK, what are the alternatives?"

Michelle has more, including links to Bloomberg and AP stories corroborating the fact that this hideous option may be circling the drain. But it looks like if they drop this proposal, coming up with the money to pay for ObamaCare, as envisioned by Obama anyway, may be nearly impossible. That would be good news indeed.