I think I sort of agree with McCain & Baucus on this one - it’s the tax deductabilty that has been the incentive for employer-provided health plans. That, in turn, has helped lead us to where we are now, stupidly considering nationalized health care.
I think you should seriously rethink that last statement!
First, I agree that employers should not be offering medical insurance. They do not offer car insurance.
Second, taxing benefits will absolutely have the effect you want.....employers will opt out of providing medical insurance and will push all employees onto the government system (which will be offered as an alternative at first).
Once all the private insurers are out of business, we have complete socialized medicine.