Thursday, June 4, 2009

Flip Flop or now you get it

President Obama is set to flip flip on his campaign promise not to tax health benefits. See article here. I preferred McCain's general approach to health care reform. I think we need to sever the dependency of people on their employer for health care. Everything points to a more tumultuous relationship with employers, meaning, we are going to have more and more of them. The long term employment with a single employer, is going to get rarer and rarer. Many people remain at employers they don't like just for the health benefits. that is not good for the employee or for the employer (or perhaps it will cause the employer to change its ways).

So, President Obama will get nailed because he flip flopped on his campaign promises, but in this case, I think the willingness to tax health benefits, as much as that is going to sting (I'm one with good benefits and will pay more for them), is a good idea----if it actually delivers on what is promised.

The suggestions to water it down, only on e high end workers or only on the most generous health plans, nope, no good. Low income workers will still be low end and will miss much of the tax hit anyway, and, if there are caps put on and etc, employers will just find ways to get around them by rearranging benefits, etc. Make it simple, the money employers pay to employees for health care gets taxed...period.

Let's get it on with it.

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