Michael Barone

As Sen. Max Baucus tries to squeeze a health care bill out of the Senate Finance Committee, and as Sens. Barbara Boxer and John Kerry race to meet their latest deadline to introduce a bill to reduce carbon dioxide, some Democrats wonder whether their congressional leaders and the president who has deferred to them have sought only limited changes rather than more fundamental reform on both health insurance and carbon emissions.

Arguing
with Idiots By Glenn Beck

On health care, the House committees and Baucus and Christopher Dodd in the Senate health committee, decided to build a makeshift addition to the health insurance system that grew out of a tax law decision made during World War II. That decision was to give a preference to employer-provided health insurance: The cost of insurance would be deductible for employers and would not be counted as income for employees.

The system insulates health care consumers from costs, with the result that insurance costs have recently crowded out wage increases. As Democratic Sen. Ron Wyden has pointed out, the tax preference is steeply regressive. High-earning employees with gold-plated, employer-provided health insurance get deductions that are worth many thousands of dollars. Those without employer-provided health insurance, or low-earners who are among the 40 percent of earners who do not pay income tax, get exactly zero. If a Republican Congress had designed such a system, it would be attacked as a favor to the rich, and rightly so.

During the 2008 campaign, Barack Obama attacked John McCain's proposal for equalizing the tax treatment of employer-provided and non-employer-provided health insurance, and so it would be embarrassing for him to advocate such a change (though no more embarrassing than reversing the position he took last March on the war in Afghanistan).

There is, however, a ready vehicle for such a reversal, and one with bipartisan support. It's a bill sponsored by Wyden and Republican Bob Bennett to provide equal tax treatment of health insurance and to provide more choices for consumers.

In addition, Wyden has an amendment in the Finance Committee to allow those with employer-provided insurance to get vouchers to buy insurance from the health exchanges available to those without employer-provided plans. They could buy cheaper policies and pocket the savings from expensive employer-provided options.


Michael Barone

Michael Barone, senior political analyst for The Washington Examiner (www.washingtonexaminer.com), is a resident fellow at the American Enterprise Institute, a Fox News Channel contributor and a co-author of The Almanac of American Politics. To find out more about Michael Barone, and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com. COPYRIGHT 2011 THE WASHINGTON EXAMINER. DISTRIBUTED BY CREATORS.COM