The Obama administration is signaling to Congress that the president could support taxing some employee health benefits, as several influential lawmakers and many economists favor, to help pay for overhauling the health care system.
Just a few minutes ago I was reading Mark Steyn, who said
General Motors has 96,000 employees but provides health benefits to over a million people.
I wonder how those folks are going to like their tax increase?
Would Medicare be taxed, too?
Would the tax be on premiums paid, or on services received? Imagine you have employer-provided group health benefits and have a catastrophic illness where your plan pays, say, $5 million for your care. Do you then have to pay taxes on that $5 million claim?
The article does not mention reigning in the malpractice lawsuit industry, of course. Doctors have to incur annually hundreds of thousands of dollars to pay for malpractice coverage, which in turn has provoked shortages of obstetricians in areas of the country.
What would be next after that? Plundering the 401Ks and IRAs?