Thursday, January 12, 2006
Interesting article this morning from Bloomberg.com: 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.