President Blasted McCain on This Issue, but Experts Say It Could Help Pay for Reform
During last year's campaign, Barack Obama poured millions of dollars into television ads attacking John McCain for wanting to tax employer-provided health care benefits.
Taxing employer-provided health care benefits, a measure proposed by opponent John McCain, R-Ariz., during the presidential campaign, is now on the table.
(But now that Congress is beginning to consider ways to fix the health care system, a concept once pilloried by Obama is being placed on the agenda by a key member of the president's own party.
Under current law, any money spent on employer-provided health plans is excluded entirely from employee's taxable income.
"That tax provision should be on the table, because it currently is, too regressive. It just skews the system," said Sen. Max Baucus, D-Mont., the chair of the Senate Finance Committee. "I do not favor eliminating it. . . But I do think it needs to be trimmed, limited, looked at."
Taxing health benefits will be front and center Tuesday when Baucus convenes a roundtable discussion with health-care experts on "Financing Comprehensive Health Care Reform."