Democrats Want to Tax Employee Health Benefits

Just as the Democrats are introducing their "optional" federally-run government health care program, they decide that it makes sense to tax private employer-paid health care. From the WSJ:

The idea of taxing employee health-care benefits to raise money for an overhaul of the health system is gaining strength in Congress, although it drew criticism from Barack Obama when he was campaigning for president.

Experts lined up Tuesday before the Senate Finance Committee and said it is one of the best ways to pay for a health-care overhaul. Many top Democrats support the concept.

Right now, employers and their employees don't pay taxes on health benefits. In 2010, this effective tax exemption will represent a loss of some $297 billion in federal tax revenue, according to the Lewin Group, a health-policy consulting firm.

That figure is catching the attention of Congress because it needs to find a way to pay for the health-care overhaul sought by Mr. Obama. A comprehensive plan that would include coverage for those now without insurance is expected to cost about $1.2 trillion over 10 years. So far, the government has identified where it will get about half of that sum.

While this might make sense as part of a move to provide a greater market-based competitive health care system, this move by the Democrats would only quicken the pace to fulfill Obama's dream of Stalinist health care for all. And of course, it would also give them another item to tax.