Obama Still Wants Excise Tax on Middle Class for HCR:

[amborin]

An agreement to tax high-cost, employer-sponsored health insurance plans, announced with fanfare by the White House and labor unions last month, is losing support from labor leaders, who say the proposal is too high a price to pay for the limited health care package they expect to emerge from Congress.

Senator Kent Conrad and Speaker Nancy Pelosi see the tax's prospects as doubtful.


But the White House is still urging Congress to adopt the excise tax as a way to help pay for President Obama’s ambitious health care proposals.

With support for the tax eroding, Congressional leaders are searching for alternative sources of revenue.

snip

When the tax agreement was announced on Jan. 14, White House officials described it as a breakthrough that would help clear the way for passage of sweeping health legislation.

Besides producing a substantial amount of revenue, they said, the excise tax on the most expensive insurance plans would slow the growth of health costs by giving consumers a powerful incentive to shop for cheaper policies.

snip

A wide range of House Democrats continue to criticize the tax as bad policy, even with the changes negotiated by labor leaders and the White House.

Moreover, House Democrats said, the tax is bad politics because it would set the middle class against the poor — people struggling to keep health insurance against people struggling to get it.

snip

http://www.nytimes.com/2010/02/16/health/policy/16health.html?scp=1&sq=obama%20excise%20tax%20health%20care&st=cse

[derby378]

1. BRILLIANT, I tell ya!

Instead of us fighting Big Insurance together, let's make the lower class fight the middle class. A win-win for Wellpoint!

[xchrom]

2. Recommend

[benchwarmer]

3. It won't happen

You know I think that the Obama administration made a big mistake trying to pander to the right and apease their nervous blue-dog friends. Obama keeps extending an olive branch, but all they are doing is using it as fire wood.

Depending on the results of the midterm elections, he may have missed his chance to pass real progressive reform.

In regards to healthcare, I really wish they'd push the public option. I honestly think we need some kind of benchmark health care ("the basics") in order to compare costs and value of different plans. The current healthcare system (broken as it is) can offer supplemental packages on top of that base for anyone who needs or wants it. I don't see how doing this is "socialist" or even anti-capitalist. It provides the most coverage to the most people.

I am one of the people that would likely get hit with the above described excise tax. I don't really care and honestly I think businesses will do everything in their power to avoid it. It just makes sense. To be competitive they have to offer a competive benefits package. So in my mind either they will absorb the costs or they will increase pay while reducing health benefits. They need one incentive to keep their workforce. It will frankly be harder for the cadilac healthcare offering businesses to sell their plan as an incentive to workers if "everyone" has healthcare to offer.

[slipslidingaway]

4. knr nt

[Spike from MN]

5. Gee, I thought HCR was supposed to be paid for by repealing Bush's tax

cuts for the rich. Haven't heard much about that since, oh, say, Nov 5, 2008. I wonder why?

[laughingliberal]

6. This line is infuriating:

"When the tax agreement was announced on Jan. 14, White House officials described it as a breakthrough that would help clear the way for passage of sweeping health legislation."

Seems they thought they would get a little Republican support if they put a little union busting in the bill.

[quiet.american]

7. I would not be surprised to find most think they would pay the tax, not the insurance co's.

I acknowledge the economists view that says the insurance co's would eventually find a way to past the cost onto consumers; however, given the piss-poor job WH/Congressional Communications did of getting out in front of GOP frames on the issue, I would not be surprised to find that most don't realize they're railing against the insurance companies having to pay the tax. Even the headline of this OP is misleading.

[frazzled]

9. It wasn't the GOP frame ...

It was the unions' frame. If we hadn't had that (misleading) fight, HCR would have been passed before the end of the year, and we wouldn't be in this predicament now.

[quiet.american]

16. Take your point. Was referencing Scott Brown. nt

[TransitJohn]

10. Right, just like most think that retailers pay sales taxes.

:eyes:

[quiet.american]

14. Where'd you get that idea. nt

[laughingliberal]

11. No eventually about it. It will be passed on and it will be the end of comprehensive policies

Everyone will wind up with the crap that is becoming standard today. In no employer sponsored medical plan did I ever have a policy with more that a $500 deductible and less coverage than 80%. This was standard in the industry until just a few short years ago. We, actually, were able to see our doctors and have recommended procedures in those days. Now, this is considered 'gold plated.' It's part of the race to the bottom. Hand over millions of new customers who will have to pay whatever to get the minimum the industry can get by with.

[quiet.american]

15. What's in the Essential Benefits Package?

The very thing you're talking about. That would be considered the minimum again -- not gold-plated.

[laughingliberal]

19. 65% coverage with deductibles of $2000 and out of pocket of $5-10,000

Indefensible.

[quiet.american]

21. No. nt

[inna]

8. It's a horrible policy. WTF is wrong with Obama.

The House version - the millionaire tax - was perfect (at least in that one aspect). Obama could've easily pushed for it, especially since he campaigned on it. Darn, this is so disappointing. How can he look people in the eyes. x(

[grytpype]

12. I'm not surprised the libs don't get it.

You're not supposed to be paying the excise tax.

You're supposed to be moving from overpriced plans to cheaper plans that don't pay the tax. It's a cost control measure.

But it's a bit too complicated for some libs to grasp.

[laughingliberal]

17. We get it. We don't want to move to lower priced plans with higher out of pocket costs

It's the same crap as Bush's 'ownership society,' which postulated that if people had to spend more of their own money, they wouldn't 'buy' as much health care. Not complicated at all. It's rationing that leaves the rationing in the hands of patients who won't be able to afford to use their policies.

[inna]

18. "libs"? that says it all.

you're pretty obvious. :puke:

[laughingliberal]

20. It certainly does tell the story. nt

[TheKentuckian]

25. What is it that we "libs" don't get?

The Max Tax is a squeeze play that will force less comprehensive plans and the goal is quality affordable health care for everyone.

What I don't grasp is the desire to force folks to pay for crappy coverage they won't be able to afford to use.

[laughingliberal]

13. We could find $300 billion for HCR if we would allow Medicare to do what every other country does:

negotiate lower prices for drugs. But, noooo, we have to protect the deal with Billy Tauzin.

[bvar22]

22. Please correct me if I'm wrong,

...but didn't Obama "campaign on" paying for Health Care by raising taxes on the top 2%?
Seems like I remember that but I could be wrong.
I thought I remembered him campaigning on a Public Option "like Medicare" available to anyone who wanted to choose it, by clearly I misremembered.

[laughingliberal]

24. I remember that. Perhaps it was mass hallucination? nt

[igfoth]

23. This is what we will get for HCR

a tax increase for all Americans with the money that is collected being given direct to insurance companies along with Tort Reform, Obama has not gifted the Pubs enough.

With each passing day I regret more and more that I voted for him in the first place but once Kucinich was out, our choice was old Pub with a lunatic VP or Obama.

Guess I should have wrote someone in so I would at least feel good about my vote.

[anonymous171]

26. Class warfare at its finest. nt