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Obama leaves door open
to tax on Health Benefits
[Jun
25, 2009] "President Barack Obama on
Wednesday rejected the idea of fully taxing
Americans' employer-provided health
insurance benefits, but suggested he might
be persuaded to tax so-called Cadillac
coverage ... in the interest of a compromise
with Congress,"
McClatchy/The Star-Telegram reports.
The President, speaking at a "town
hall-style event" taped at the White House
and aired on
ABC News, "said he would prefer to pay
for expanded coverage by eliminating some
deductions for higher-earning taxpayers but
that 'there's going to have to be some
compromise."
The President "said he understands
Americans' trepidation about changing the
system: 'They know that they're living with
the devil, but the devil they know they
think may be better than the devil they
don't.' He said any reform would be phased
in, not happen overnight" (Talev and
Lightman, 6/24).
The Associated Press adds that Obama
said he "didn't want to prejudge" the
proposals in the Senate to tax expensive
insurance policies.
"Obama, who campaigned against the tax when
he ran for president, drew a quick rebuff
from organized labor."
The President also "fielded a pointed
personal question" during the event. "Dr.
Orrin Devinsky, a neurologist at the New
York University Langone Medical Center,
challenged Obama: What if the president's
wife and daughters got sick? Would Obama
promise that they would get only the
services allowed under a new government
insurance plan he's proposing. Obama
wouldn't bite.
If 'it's my family member, if it's my wife,
if it's my children, if it's my grandmother,
I always want them to get the very best
care,' Obama said" (Espo and Elliott, 6/24).
The Hill: "During nearly 90 minutes of
questions and answers, Obama got just one
question about covering the uninsured,
underscoring the political reality that the
key to Obama securing a victory on
healthcare reform is to convince
middle-class workers with health insurance
the reform is needed and will benefit them.
Obama returned time and again to his mantra:
'If you are happy with your plan and you are
happy with your doctor, then we don't want
you to have to change'" (Young, 6/25).
Politico: "On taxing health benefits,
Obama sought to make a distinction between
Sen. John McCain's campaign plan and the
ideas now under consideration in Congress.
As the Republican nominee, McCain wanted to
eliminate the tax-free status of health
benefits and turn that money back to
individuals in the form of tax credits.
Obama lambasted McCain, accusing him of
pushing the largest middle-class tax
increase in American history.
But the Senate Finance Committee is not
looking at eliminating the deduction, but
rather capping the benefits, Obama said.
One proposal involves taxing benefits worth
more than a certain amount, such as $13,000
or $17,000 for a family, Obama said."
"And for the second consecutive day, he gave
a forceful defense of the need to create a
government insurance plan to compete with
private insurers. He challenged Republicans
who say the public option will lead to a
government takeover of health care and
interfere with the doctor-patient
relationship" (Brown, 6/25).
ABC summarized the special and followed
up with a key Republican: "President Obama
made a push Wednesday for evidence-based
medicine and a reduction in health care
costs in the United States, but skeptics and
many Republicans remain unconvinced his
plans will work ... 'We believe we should
fix our problem in the health care system,'
Rep. Paul Ryan, R-Wis., said on 'Good
Morning America' today. Ryan said he
believes Congress will meet the president's
deadline of achieving reform by the end of
the year, but added that the reform could
move forward without Republican support.
'Unfortunately, it doesn't look like it will
be bipartisan health care reform,' he said.
'Democrats have the votes, and they've told
us they're not interested in sincere
bipartisanship.'" (Tapper and Travers, 6/25)
Meanwhile,
NPR reports that "In a poll looking at
public attitude toward health care, pollster
Stan Greenberg found something startling:
The results were almost identical to a poll
he conducted on the issue 15 years ago when
he worked for the Clinton White House"
(6/24).
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