President Bush likes to say that his health-care proposal would "level the playing field" between people who get health coverage through their job and those who buy it on their own. But experts said yesterday that it would tilt that field toward a kind of health insurance that Bush has long favored -- a high-deductible plan paired with a special tax-exempt health savings account, or HSA. ... Bush's proposal seeks to eliminate the long-standing tax break for job-based medical insurance, requiring that a worker's taxable income include any money his employer contributes to help pay the premiums. A new tax deduction -- $15,000 a year for families and $7,500 for individuals -- would help people pay the premiums, either through their job or on their own. The plan faces opposition from Democrats in Congress. ... Len Burman, director of the nonpartisan Tax Policy Center, said that, in leveling the field, the White House should also seek to scrap the HSA tax break, whose purpose is to counter the tax code's current bias toward comprehensive and expensive employer-provided coverage. Under Bush's plan, it would be the only extra tax break for health insurance -- one that would most benefit wealthy people, who can best afford the financial risk of a high-deductible plan and to sock away a lot of money in an HSA. ... Burman said eliminating the HSA tax break would bring in billions of dollars that Bush could put toward the other initiative he proposed this week -- giving states special grants to fund innovative ways of covering the nation's 47 million uninsured. "This is not just free money just sitting there," he said. "There really is a big opportunity cost." full article

This is not a tax cut. Bush is proposing taxing employees where they were not taxed before. Adding new taxes is a tax increase.

Of course his new taxes will barely (if at all) touch the wealthy. Of course employers don't have to pay the new tax. And to offset the hardship the wealthy will experience at not having to pay this tax, he proposes a new tax break for the wealthy. Everyone else, go suck an egg.

I propose "Mr. Tax Cut" Bush be spanked spanked repeatedly with this proposal. I propose that "Bush is proposing a tax increase" be a talking point. He is repeating the lies of his father. Read my lips: "Trumpet it!"

Ask me anything. Anything. I will then make a post answering any and all the questions asked. I will not state who asked the questions, nor will I post what the questions were. However, you may put a number in the subject line of your comment. If you do so, I will put that number in front of my answer to your question so that you can identify which answer is for you.

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