Paul L. Caron

Thursday, January 12, 2006

Bush Rejects Tax Panel's Proposal to Tax Health-Care Benefits

Interesting article this morning from  Bush Rejects Proposal to Tax Health-Care Benefits, Hubbard Says, by Brendan Murray & Ryan J. Donmoyer:

President George W. Bush has rejected a key proposal of his tax reform commission, which would impose a tax on some employer-provided health benefits, said Al Hubbard, the president's top economic adviser.

The Advisory Panel on Federal Tax Reform, commissioned by Bush to suggest ways of reworking the tax code, recommended taxing workers on health insurance benefits valued at $11,500 or more for a family, arguing the current system encourages expensive and unnecessary "Cadillac" plans. "I know the president's not interested in pursuing that," Hubbard, director of the president's National Economic Council, said in an interview. Instead, Bush will promote expanding untaxed health savings accounts and increased deductibility of medical expenses, he said.

News | Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Bush Rejects Tax Panel's Proposal to Tax Health-Care Benefits:

» Should Employee Health-Care Benefits Be Taxed? from Tax Policy Blog
Is it good tax policy to remove employer-provided health-care benefits from the federal income tax base? Maybe not. A vestige of World War II price controls, the exclusion for employer-provided health care is the largest preference in the tax code w... [Read More]

Tracked on Jan 12, 2006 8:20:29 AM