Support Slips for Tax on Employee Health Benefits

The Wall Street Journal ^ | 07-07-09 | GREG HITT and JANET ADAMY

[GOP_Lady]

WASHINGTON -- Senators are cooling to a proposal that would impose a first-ever tax on employer-provided health insurance and are giving renewed attention to taxes on the wealthy to pay for a sweeping health-care overhaul.

Sen. Kent Conrad (D., N.D.) and others involved in talks on a health bill said Tuesday that the idea of taxing health benefits is unpopular with voters, though they stressed that it hasn't been completely swept off the bargaining table.

Senate negotiators are considering a wider range of ways to pay for expanding health coverage, including President Barack Obama's proposal to limit tax deductions for the wealthy and another proposal to impose an income surtax on the wealthy, people familiar with the matter said.

[GOP_Lady]

[KarlInOhio]

The ones most hit by this tax would be the union members, who generally have the most expensive health plans. If they were to explicitly exclude unions, the Republicans (if they found even a single vertebra) could pound the Dems with it in 2010 and 2012. I expect the Dems are going to push for an income tax increase to pay for it.

[Steely Tom]

Tax, tax, tax!

Spend, spend, spend!

Sarah, Sarah, Sarah!

[GOP_Lady]

The dems have stated this will be paid for.

Let's see what they propose.

[Zhang Fei]

I’m kind of hoping the Dems go for the tax. If it goes through, I expect we will see both houses delivered to the GOP on a silver platter in 2010.

[Steely Tom]

I’m kind of hoping the Dems go for the tax. If it goes through, I expect we will see both houses delivered to the GOP on a silver platter in 2010.

I know what you mean, but it'll be a one-way trip. This tax will be forever.

[FlingWingFlyer]

There was a story last week saying that the ‘RATS were going to exclude their union thug buddies from paying this tax on their health plans because union guys are working under contracts that cannot be changed. Good excuse as any I guess.

[Lawgvr1955]

Hmmm. Senators learning that taxes are unpopular. Boy the people in the “World’s Most Exclusive Deliberative Body” or whatever name they call themselves, sure have a grasp of the obvious. /s

[guitarplayer1953]

If they exclude the unions then there would be an outright revolt by by every right to work state. I live in KS and our states Constitution states that a persons hiring firing and maintaining a job can not be based on belonging to a union. Yet where I work there is a clause in the contract that says that union stewards have what is called super seniority when it comes to layoffs and call backs. which is a flagrant abuse of my states constitutional rights. I have asked the NLRB why this has never been confronted in Kansas and they say the union has deep pockets.

[AD from SpringBay]

Great Leader promised no new taxes on those making less than $250K per year. Do I need to repeat that you Palin supporter you? Great Leader said!!!!!!!!!!!!!!!!!!

[KarlInOhio]

There was a story last week saying that the ‘RATS were going to exclude their union thug buddies from paying this tax on their health plans because union guys are working under contracts that cannot be changed.

I call BS. A lot of people have health benefits covered by contracts without being in a union. Will they exclude CEOs' health insurance because they have contracts? I don't think so.

[Clock King]

I’m kind of hoping the Dems go for the tax. If it goes through, I expect we will see both houses delivered to the GOP on a silver platter in 2010.

Took the words right out of my mouth. That would absolutely wake up the sleeping masses, and the Dems wouldn't be able to spin the news fast enough to stop people from throwing them out.

[FlingWingFlyer]

"...union officials complained their members would be unfairly burdened by a health care tax because their contracts cannot be changed quickly enough to avoid it."

[ExTexasRedhead]

Support is dumping for Hussein, Congress, and Liberals. It’s going to be toilet bowl time shortly. Vote Them All Out

[freeandfreezing]

I call BS. A lot of people have health benefits covered by contracts without being in a union. Will they exclude CEOs' health insurance because they have contracts? I don't think so.

I would have tended to agree with your assessment until I read one proposed "reform" bill -- that even has some Republican co-sponsors. Amazingly enough, the bill treats union negotiated health care benefits differently than everyone elses. For example, the proposed HAPI bill (S.391)in Section 102 requires everyone to obtain one of the HAPI approved plans (or pay a steep penalty). But note the exception for "qualified collective bargaining agreement" -- that's a union contract, not an ordinary employment contract.

(a) Individual Responsibility-

(1) ADULT INDIVIDUALS- Each adult individual shall have the responsibility to enroll in a HAPI plan, unless the adult individual--

(A) provides evidence of receipt of coverage under, or enrollment in a health plan offered through--

(i) the Medicare program under title XVIII of the Social Security Act;

(ii) a health insurance plan offered by the Department of Defense;

(iii) an employee benefit plan through a former employer;

(iv) a qualified collective bargaining agreement;

(v) the Department of Veterans Affairs; or

(vi) the Indian Health Service; or

(B) is opposed to health plan coverage for religious reasons, including an individual who declines health plan coverage due to a reliance on healing using spiritual means through prayer alone.

Source - see Section 102

Note also that this particular bill does not exempt individuals who are presently employed by a company -- only those (retired really) who have benefits from a prior employer.

All of us need to get to work and read these bills -- our elected reps and senators won't so we better dig into them. S.391 is full of disastrously bad ideas -- read it and weep - or better yet call your Senator.

[Williams]

The mere fact the politicians are considering so many things to harm the voters is frightening.

[La Lydia]

There is a real plan to do just that: exclude everyone working under a union contract from the health care tax.

http://www.washingtonexaminer.com/politics/Union-workers-would-be-exempt-from-Dem-health-care-tax_06_23-48810402.html

http://www.nytimes.com/2009/06/23/opinion/23brooks.html

http://online.wsj.com/article/SB124476309180208203.html

I think they would have a few million Equal Protection Clause lawsuits if they did it, but they are that dumb.

[tinamina]

There ya go....we can all be conscientious objectors now!

[Semperfiwife]

I just don’t think there are that many people, at least not anymore, making over 200 grand a year to tax to the extent they can pay for the mythical 47 million uninsured. They have decimated the wealth in this country, how can they tax what they have made disappear!!