Monday, June 29, 2009

White House Open To New Tax On Health Benefits

From The Associated Press:

The White House is leaving open the possibility that President Barack Obama might agree to pay for a health care overhaul by taxing employer-provided health insurance above a certain level.

White House adviser David Axelrod told the Sunday talk shows that there's a long way to go and a number of formulations to consider before a decision is made.

On the campaign trail, Obama had blasted John McCain's call for taxing health benefits saying it would be the "largest middle-class tax increase in history."

If Obama compromises on the issue, it would reverse his promise not to raise taxes on those earning less than $250,000.

Some Democrats are pushing a plan that would tax health benefits that come to more than $17,240 a year for a family and $6,800 for an individual. They say such a tax would be a way to pay for improvements in heath care without ballooning the federal deficit.

Obama plans to sell his health plan Wednesday at a town-hall-style meeting in suburban Washington.

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