[JohnBovenmyer]

What Baucus proposes is simply taxing existing benefits with no tax deduction to offset the inequity.

I presume those that itemize could still deduct it, if it plus other medical expenses exceed 7.5% of their income. And the way Obama has things going that may not be such a stretch anymore.

[Myrddin]

I presume those that itemize could still deduct it, if it plus other medical expenses exceed 7.5% of their income.

Itemized deductions are getting nailed in the "new budget". You won't be able to deduct state or local income taxes. If you're in the 39.6% bracket, you'll be limited to 28% deductions of your mortgage interest and charitable deductions. No mention has been made of impacts on medical deductions.