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Senior Obama Advisor Endorses Taxing
Health Insurance Plans

From Ryan Ellis on Tuesday, October 27, 2009 12:39 PM
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The Chairman of the White House Council of Economic Advisors, Christina Roemer, may have created a headache for President Obama yesterday.

While speaking to the ultra-liberal Center for American Progress, Roemer had this to say about the Senate's idea for a 40% tax on health insurance plans that exceed $26,000 in cost ($8000 for individuals):

“A policy such as this [the 40% Cadillac excise tax] is probably the number-one item that health economists across the political spectrum believe is likely to stem the explosion of healthcare costs.”

Notice how the "number one item" isn't anything that puts consumers in charge of their own healthcare (like health savings accounts or interstate purchase of health insurance).  No, it's a new tax on existing health insurance plans.  It seems as if the solution to everything for some people is a tax increase.

Roemer's endorsement of this tax is the strongest yet to come out of the White House.  It's sure to cause some consternation among labor unions (who sponsor these type of plans), and the House Democrat leadership (which has flatly ruled out such a tax in their version of reform).

For a list of all the tax hikes that might find their way into Harry Reid's Senate bill, click here.  These are the ones which violate President Obama's promise not to raise "any form" of taxes on families making less than $250,000.

Permalink | Email | Print | Tags: TAXES, HEALTHCARE, OBAMA

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Comments

How does adding a tax to an item decrase costs? What economic theory makes that the case? I really don't follow this administration's logic.
>> PJP Tuesday, October 27, 2009 4:45 PM

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