The Other Side of the Taxing Benefits Debate

by: Matt Singer

Thu Mar 12, 2009 at 09:01:49 AM MST

That said, even though Max Baucus's proposal isn't akin to John McCain's, there are good reasons it has a lot of people upset (I should note here that tax deductibility is not one of the areas I've given a ton of thought to in this realm). This letter from the NEA to Rep. Rob Andrews, who chairs the same subcommittee that Pat Williams did when Pat passed out both Clintoncare and a single-payer bill back in the '93/'94 effort, explains those concerns quickly:

Guarantee that the employee tax exclusion for health benefits is not limited or capped in any way. Over the course of their careers, many public education employees have traded salary increases for the long term security of a comprehensive health plan.  Telling hard-working employees that benefits will be cut or that they will pay more taxes would unfairly penalize them. A tax on salaries above a certain amount would also be unfair to experienced educators who, after decades of dedicated service, have climbed to the top of their salary schedules. Limiting or capping the tax exclusion for health benefits could have a disastrous effect on public education by discouraging highly qualified workers from entering or staying in the profession.

Health care is a huge, difficult subject. And most of this stuff is more complicated than it looks on first blush. We'll keep trying to help navigate the weeds of it here on Left in the West.