More and Higher Taxes to Pay for Health Care Reform?

Remember how then presidential candidate Sen. Barack Obama mocked Sen. John McCain for his proposal to tax health care benefits under his Health Care proposal?

In a campaign speech in Roanoke, Va. on Oct. 17 2008, Obama said, “McCain wants to pay for his plan by taxing health care benefits for the first time in history!”

Fast forward to today, where the Wall Street Journal’s Janet Adamy details some of the options Senate leaders are mulling over to pay for Health Care Reform. One of the options: taxing health care benefits that are better than those of federal employees. And you guessed it, the “rich” are being singled out as another option to tax only individual taxpayers who earn more than $200,000 annually, or $400,000 for couples. Another option is to combine option one and two so that if one has an excellent health benefits package and is “rich” as defined above, one would be ineligible for the tax-deductible exemption.

To be sure, Health Care Reform done by Democrats will be hugely expensive, to the tune of $1.2 trillion over 10 years. But really, no one knows how much it will cost; it could cost more than the estimate.

You think that’s why another proposal would limit the amount employees could contribute to flexible spending accounts, or flat out eliminate them? Senate leaders are confronted with the high cost of Health Care Reform and are thinking about a proposed increase in sin taxes like alcoholic drinks, and possibly implementing a tax on sugary drinks.

Do you like the big burly government reaching its hands into your wallet?

And do you find it ironic that the Senate seems to be seriously considering implementing what was McCain’s idea of taxing health care benefits?

Video Source: YouTube