White House open to new tax on health benefits
WASHINGTON — The White House left open the possibility Sunday that President Barack Obama might pay for his health-care overhaul by taxing employer-provided health insurance even though he had campaigned on not raising taxes on middle-class families.
White House adviser David Axelrod said the administration wouldn't rule out taxing some employees' benefits to fund a health-care agenda that has yet to take final form. The move would be a compromise with fellow Democrats, who are pushing the proposal as a way to pay for the massive undertaking without ballooning the federal deficit.
"There are a number of formulations and we'll wait and see. The important thing at this point is to keep the process moving, to keep people at the table, to the keep the discussions going," Axelrod said. "We've gotten a long way down the road, and we want to finish that journey."
But if Obama compromises on that point, it would reverse his promise not to raise taxes on those earning less than $250,000.
"I pledge that under my plan, no one making less than $250,000 a year will see any type of tax increase," Obama told a crowd in Dover, N.H., last year. "Not income tax, not capital gains taxes, not any kind of tax."
At the time, his Republican rival, Sen. John McCain, R-Ariz., was proposing a tax on health benefits similar to the plan Obama is now considering. Just a year ago, Obama spent millions on campaign commercials attacking the idea.
One ad accused McCain of favoring "taxing health benefits for the first time ever ... taxing health care instead of fixing it. We can't afford John McCain."
A second Obama ad called McCain's approach "the largest middle-class tax increase in history." Driving the point home, it contended the "McCain tax could cost your family thousands. Can you afford it?"
Under the current proposals, a tax on health benefits would affect only those with pricey health plans. The idea would be to tax as income the portion of health benefits worth more than a specified limit. Officials are considering several options, including one that would set the limit at $17,240 for family coverage and $6,800 for individuals.
Plans worth more than that would be taxed; those worth less would see no increase.
Obama has faced similar criticism before. When he increased taxes on tobacco to pay for a children's health bill, his critics said he was raising taxes on those making less than $250,000 a year.
Recent comments
I just lost my job. Now I have no health insurance. And soon I'll...
I need help | June 29, 2009 at 11:36 a.m.
And we are suprised?
Cosmo | June 29, 2009 at 11:21 a.m.
It looks like they will try everything possible to wreck our economy.
JS | June 28, 2009 at 9:54 p.m.
- Mitchell called intelligent, controlling 1:19 a.m.
- Brems outlasts 2nd round of votes 1:04 a.m.
- 2 families divided over slaying 1:04 a.m.
- Teen shot in scuffle with trooper 1:03 a.m.
- Nature's Way leaving Utah County 1:03 a.m.
- 'Grandfamilies' a growing trend 12:31 a.m.
- 'Cyber Monday' sales top records 12:29 a.m.
- 2 citations issued at Y.-U. game 12:26 a.m.
- No drugs in driver of Am.F. band bus 12:15 a.m.
- Governor Mansion to begin free tours 12:14 a.m.
- Hall's pain reflects self-betrayal
- Y. student vanished in China
- Utes won't respond to Hall
- Hall reprimanded by MWC
- Max Hall issues apology
- Cougs begin bowl preparations
- Mitchell called intelligent, controlling
- Teen shot in scuffle with trooper
- Matthews passes new Jazz tests
- Daughter: Mitchell fed me my pet
- Hall mouths off about hate of Utah
898 - Cougars beat Utes in overtime
481 - Max Hall issues apology
379 - Hall reprimanded by MWC
370 - Hall's pain reflects self-betrayal
316 - Utes won't respond to Hall
257 - BYU is champion of the state
140 - Man trapped in Nutty Putty cave dies
121 - Cave to be sealed with body inside
120 - Religion in politics is tiresome
110
When I was a kid, I worshipped my grandpa. He was undoubtedly my hero....
There are some games I love not on your list. Arkham Asylum for one.
Our parents made my brothers help kill and clean our rabbits before we ate...
Why would you keep it open? I would understand if there was a lot of amazing...
The government will run our health care well? Read Reader's Digest, November...
TCU stomped on the MWC so they are naturally ready to crush Florida, Alabama...
could you understand Dave Locke any more than my mom does and she is not even...
Attending the ND/BYU game 3 years ago in south bend, a couple of things stuck...
I missed the game, actually i heard a little bit of Locke on the radio (man...
quotes were good: Article was dumb and unnecessary.
I believe the art depicting Joseph looking at the plates may possibly be...


