Tuesday, June 02, 2009

Senator Wants to Lower Health Costs by Taxing Benefits

Senate Finance Committee Chairman Max Baucus, D-Mont.,wants to control health care costs by taxing some benefits provided by employers. President Barack Obama has previously ruled this out.

"I know that's an issue we have to work out with the president, but I think it's an issue we will work out," said Baucus, who is among several Senate Democrats scheduled to meet with Obama Tuesday afternoon.

Baucus says the tax-free benefit packages Americans now enjoy are a big factor in the high costs of the country's health care system, because they provide workers free or low-cost access to too many health care services.

The senator's recommendation came at a White House event where Obama advisers released a new economic report that links fixing the economy with overhauling the costly U.S. health care system.

Obama is pushing Congress to enact sweeping health legislation this year to hold down costs and provide health coverage for 50 million uninsured Americans.

Perhaps Baucus will find some support for his plan from the general public if he includes taxing the benefits Congress enjoys at the public's expense.