Labor Hammers Dem Senator Over Plan To Tax Health Benefits

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First Posted: 05-19-09 07:00 AM   |   Updated: 05-19-09 11:53 AM

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Wyden

The ad wars in the health care reform debate are beginning to heat up, even as key members of Congress plead for a détente until an actual bill materializes.

On Tuesday, The National Education Association, American Federation of State, County, and Municipal Employees (AFSCME) and the United Food and Commercial Workers entered the fray. The coalition put out a radio ad making the case for a public insurance plan and preemptively criticizing any proposal that would effectively tax employer health benefits to pay for reform.

Released in Oregon, the group also name names, going specifically after home state Democrat Sen. Ron Wyden for proposing a plan that would end effectively employer-based health care coverage and, in its place, bump up the (taxable) salaries earned by employees.

"The last thing we need is to pay more," goes the spot. "But Senator Ron Wyden would tax the health care benefits we get at work -- as if they were income. Taxing health benefits? That doesn't make sense. Tell Senator Wyden that Oregon families want quality, affordable health care -- not taxes on their health care benefits."

LISTEN TO THE AD:

The radio ad, which is being accompanied by the website, http://www.stopwydenshealthtax.com, underscores a rare willingness among some in the labor community to go after traditionally sympathetic Democrats on health care. But it also comes at a time when health care industry stakeholders are beginning to exert their influence in the broader policy debate. The Washington Post reported on Monday that Blue Cross Blue Shield of North Carolina had begun a public message campaign aimed at killing a public plan for insurance coverage. Other groups, including Health Care for America Now and Rick Scott's Conservatives for Patients' Rights have also started writing large checks on ads (respectively) for and against more government involvement in the health care system.

The growing louder advocacy machine is, by all accounts, not a welcome development for those crafting health care policy on Capitol Hill. Senator Max Baucus, who is playing one of the key roles in the reform process, reportedly told interest groups to "cool it" before Congress produced an actual piece of legislation to debate.

As for the substance of the Oregon-based radio ad, Wyden's proposal does have admirers within the White House -- primarily because it achieves universal coverage with bipartisan support. It does not, however, seem likely to serve as a template for reform. Progressive groups and the president himself have both said they support a public plan for insurance coverage, something missing from the Oregonian's plan. As for eliminating the tax deduction that employers receive for covering their workers, the White House remains opposed to the idea. (Obama repeatedly criticized John McCain for offering such a plan during the '08 campaign).

"It was not in the president's campaign plan and wasn't in our budget," OMB Director Peter Orszag said Sunday on CNN. "Clearly, there are some members of Congress who are putting it on the table. We will have to let this play out."

A source familiar with the ad buy says $60,000 is being put behind its run on the radio in addition to direct mail efforts, phone and canvassing. The spot will air in Portland and Eugene.

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The ad wars in the health care reform debate are beginning to heat up, even as key members of Congress plead for a détente until an actual bill materializes. On Tuesday, The National Education Assoc...
The ad wars in the health care reform debate are beginning to heat up, even as key members of Congress plead for a détente until an actual bill materializes. On Tuesday, The National Education Assoc...
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- larry278 I'm a Fan of larry278 50 fans permalink

To the tune of Tom Dooley, stolen from the Kingston Trio, "Socialize our country. We've got an axe to wield. Stamp out Blue Cross & Blue Shield/ Lift up your head, Dick Cheney...".

    Favorite    Flag as abusive Posted 07:20 PM on 05/19/2009
- jmpurser I'm a Fan of jmpurser 197 fans permalink

Tax wise if your employer buys insurance for you then yes, it's income. We make a special exception for health insurance. This functions as a subsidy for the health insurance industry. It's your tax dollars going to make the purchase of their product cheaper.

That said, the idea of making health insurance and thereby health care MORE expensive strikes me as insane.

Come out with a good single payer health care plan and private insurance as we know it today will go the way of the dodo anyway so why bother to tax it?

    Favorite    Flag as abusive Posted 06:43 PM on 05/19/2009
- RuthAlice I'm a Fan of RuthAlice 12 fans permalink

Ron Wyden is proof that the longer someone is in Washington the more worthless they become. His political career began as an organizer for the Gray Panthers. He was a progressive, solid liberal Democrat when he began and his interest in health care reform was there from the beginning and soon began attracting the attention of PHARMA and HIAA and the medical-industrial complex to the degree that as a representative from Oregon (before he ran for Senate) he was one of the top 10 recipients of campaign contributions from that industry.

During the Clinton health care reform attempt, Wyden ran around talking reform and voicing his professed support for single payer though saying it was not politically feasible even though it was in his own words the best option. Meanwhile, he was secretly circulating a dear colleague letter enlisting supporters for his proposal to prohibit states from adopting a state single payer option. This was leaked to the press though only the NW Labor Press published the story since the mainstream liked to pretend Wyden was a real progressive and a real liberal rathher than a Trojan Horse doining the dirty work of the insurance industry in order to sytmie reform.

He has only gotten worse. His proposal is merely another attempt to protect and insulate the health insurance industry from public competition. Again and again, Wyden proves that nothing matters more to him than the well-being and financial health of his contributiors in the insurance industry.

    Favorite    Flag as abusive Posted 03:20 PM on 05/19/2009
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Interesting

    Favorite    Flag as abusive Posted 03:40 PM on 05/19/2009
- bascombe I'm a Fan of bascombe 38 fans permalink
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We have to get rid of the DLC/DSCC/DCCC.

    Favorite    Flag as abusive Posted 02:49 PM on 05/19/2009

I can see why Blue Cross/Blue Shield of NC is against a public option. My son lives in NC. He is 42, relatively health and with a 1000 deductible, it costs almost $5,000 per year. Could it be that BC/BS would like to avoid competition? There are not too many other options for health care in the part of NC he lives in.

    Favorite    Flag as abusive Posted 02:45 PM on 05/19/2009
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Bingo. Competition is a great capitalist concept, unless it's serious competition.

    Favorite    Flag as abusive Posted 03:37 PM on 05/19/2009
- sarabono I'm a Fan of sarabono 18 fans permalink

When are the Democrats going to put out a plan to actually Grow the Economy so that we can properly pay for some of these programs with actual revenue vs borrowing from others and balloning our debt?

All I hear is Tax, Tax, Tax. This Cap and Tax proposal is projected to remove 687 Billion from the Economy and transfer the revenues to the Government. How can that really help with job creation when only $123 Billion of this revenue is allocated to Clean Energy development?

We need to create jobs. This is the only way family's can gain security for the future and create a comfortable retirement. Not a word or plan from BO on what his Administration Plans to do to create good paying domestic jobs other than to subsidize wind and solar energy. What about manufacturing? What about an overall Industrial Policy with stated goals of how we are going to Grow the Economy?

    Favorite    Flag as abusive Posted 01:27 PM on 05/19/2009
- Gidster I'm a Fan of Gidster 221 fans permalink
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The CEOs moved all manufacturing to countries where people are happy to earn $100 a week!
To help their bottom line.

The CEOs sent all of the help desk and customer service jobs to India and the Philippines.
To help their bottom line.

The CEOs are crying because no one in America is buying their goods and services and want taxpayers to bail them out.
To help their bottom line.........

CEOs and board members made millions off the backs of Americans, then took our jobs away to increase profitability by using sweatshop labor.

Where is my bail out?

    Favorite    Flag as abusive Posted 01:49 PM on 05/19/2009
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"The CEOs are crying because no one in America is buying their goods and services..."

Like putting a glass cup over a candle, companies effectively smothered their market. What else did they expect, a sudden uptick in consumers...

    Favorite    Flag as abusive Posted 03:41 PM on 05/19/2009
- cigi I'm a Fan of cigi 36 fans permalink

I agree sara that we need to "grow" the economy in our own country with American jobs. However, for the last 30 years, both Dems and Pubies have acquiesed to business overall to allow them to outsource, import workers on HB1 visas, and exploit Mexicans who come to our country illegally. One thing we might fight for in the future is term limits on our legislators...they are way too beholding to Big Business for campaign contributions. If we can't kick the lobbyists out of our life, then we can limit the representatives in our Congress from riding the business lobby gravey train. Before FDR there were not term limits on the President of the US...this was enacted after FDR won his 4th term. I am disappointed with our representation, on both sides, the American people and our country are not being well-served.

    Favorite    Flag as abusive Posted 03:13 PM on 05/19/2009
- MaryanneAZ I'm a Fan of MaryanneAZ 132 fans permalink
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We will never get anyone in the House or Senate to put up a Bill calling for term limits. They will never jeopardize their own careers as "public servants." It used to be that people took public service jobs to add to their resume and serve the public on their way to a better paying job at the end of their term. Somehow the House and Senate has become a permanent career for people who do not want to make their way in the private sector. In fact, many of them have never worked a job in the private sector. I wish we would elect someone on a platform to fight for term limits because unlimited terms lead to corruption and undue influence. Hence, the mess we're in.

    Favorite    Flag as abusive Posted 05:34 PM on 05/19/2009

We have to keep presure on the dems who are coming up short of nationalized health care. There are going to be (and already are) so many groups paying for half measures and baby steps. We need this to get resolved NOW.
What would be the result if Americans organized a national strike to hold these chumps accountable to what the PUBLIC wants and not what publicly traded companies want (and don't expect the press/media to do any average americans any favors, they are owned by the same companies that are fighting against average americans interests)?

    Favorite    Flag as abusive Posted 12:49 PM on 05/19/2009
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Have a "True National Healthcare Day" and everybody including children, wear all red for the Red alert on our health.

It's time to set a date, maybe independence day or the day before, as we need to be Independent of the Health for Profit Insurers, we have already. You know, the ones telling our doctors how to heal the patient.

    Favorite    Flag as abusive Posted 04:30 PM on 05/19/2009
- orianna I'm a Fan of orianna 11 fans permalink

Health benefits should not be the burden of employers.... health care, if free for all, will be paid for from taxes. No insurance needed! thus, say us all the billions paid to insurers and instead use it to cover costs associated with health care for all.... leave the employers out of it, they have to compete with 3rd world labor costs and health care belongs the burden of the whole society, not just our employers, who already have no protection from imports.

    Favorite    Flag as abusive Posted 12:23 PM on 05/19/2009
- DrFitz I'm a Fan of DrFitz 5 fans permalink

GOOD!!! I'm glad to finally see a campaign tareting this. Congress should be asked to justify why health benefits tax is better than reducing write-offs by the highest earners. That's what they're saying by shooting down Obama's proposal and replacing it with this new tax.

    Favorite    Flag as abusive Posted 12:19 PM on 05/19/2009
- MsEngineer I'm a Fan of MsEngineer 3 fans permalink

If I have to pay for my own health care it is post-tax. Only if you get your health care through an employer is it pre-tax. NOT FAIR!!!!

    Favorite    Flag as abusive Posted 01:27 PM on 05/19/2009

Get a better job Ms Engineer.

    Favorite    Flag as abusive Posted 02:08 PM on 05/19/2009

Excellent point- Ms. Engineer.

While I am not a fan of increasing taxes, the current systemnd favors one group of people- those with "good" jobs/companies over the self employed or in less "good" jobs/companies.

    Favorite    Flag as abusive Posted 03:14 PM on 05/19/2009
- vgirl1 I'm a Fan of vgirl1 57 fans permalink

Good for labor unions in Oregon. As long as these politicians think they can go unnoticed as they try to thwart true health care reform by attacking a public insurance offering or suggesting the taxing of existing employer based healthcare plans these politicians will do so.

The unions should keep up the heat on Wyden and any other Democratic or Republican politician in any state who puts forth misinformation, suggests policies that would result in citizens paying more , or that in anyway tend to undermine real reform.

American taxpayers must engage. We must not let the medical profession, insurers, lobbies or politicians steal our call for affordavle healthcare and insurance for all as supported by plans of choice. Sign that circulating petition. Call your senators and representatives.

Do not let the anti-citizen forces win once again.

    Favorite    Flag as abusive Posted 11:17 AM on 05/19/2009
- XLintLuvR I'm a Fan of XLintLuvR 33 fans permalink
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Not so fast. There are many in the health care industry that are for a public plan. Doctors and nurses have been on board with this and even got arrested last week trying to get a seat at the table for discussions. It's the health insurance industry coupled with the repubs and a select group of conservadems that have been working against this reform. Who they really should be targeting is Ben Nelson.

    Favorite    Flag as abusive Posted 11:57 AM on 05/19/2009

Correction only SOME docs and nurses are on board. The AMA is OPPOSED to a national program. Of course, the AMA has a "seat at the table". Just like the insurance companies, they are only there to KILL the bill before it gets rolling.

    Favorite    Flag as abusive Posted 02:10 PM on 05/19/2009

Are Senators' and members of Congress taxed on their incredibly good health/retirement benefits? Seems those who need health care the most get the least (i.e. the blue/white collar workers).

    Favorite    Flag as abusive Posted 12:05 PM on 05/19/2009

Of course not. Neither are most Americans. This is just another tactic to blunt any move to a national plan. It's called a Poison Pill.

    Favorite    Flag as abusive Posted 02:11 PM on 05/19/2009
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Attention American
Blue Tsunami of change
Independents and Green
PUMA
Change Grassroots

Just because you have been listening to the "NO WE REPUBLICANTS" for the last three months threaten filabusters and the Blue Dogs howling perhaps for the lst time come 2010, don't have a fear.
In fact, if you are fed up with them having it not US, on OUR doal, then let us strike the fear of "electoral failure" Friday this week. Most of us are scrambling and about to lose our homes, college and or other worries, while bailing out all these Financially Greedy Entities. Yet they still stick their noses, in the people's business, while cooking the books and rigging credit card interest rates.
Tired of them telling us no, when it comes to from our family needs for survival?

No parent should have to worry about having healthcare, with all that WE have sacrificed the last 12, possibly 30 years.
WE DESERVE HEALTHCARE TAKEN OUT OF OUR TAXES WE PAY ON GOODS.

Why should they have healthcare worry free on our pocket, then say we have to grease the pocket of all their croney lobbyist Pay or Die Business.
We've bailed out everybody but ourselves.
E-flood system Friday this week.It's only tuesday now? Remember all the rallying during the 04 and 06, 08?
Let the fingers do the walking eh?
What do you say?

WE THE PEOPLE DEMAND UNIVERSAL SINGLE PAYER HEALTHCARE NOW!!

YES WE CAN!!!
Chugga Chugga baby, wooooo woooooooooo!!!

    Favorite    Flag as abusive Posted 05:46 PM on 05/19/2009

Only when the insurance companies are dead and buried will we have any hope of decent, accessible health care. Do not compromise or negotiate with health insurance companies. DESTROY THEM!

    Favorite    Flag as abusive Posted 11:00 AM on 05/19/2009

Actually, mandate that they be "non-profit" corporations and that will fix many things that are wrong in the medical insurance arena.

    Favorite    Flag as abusive Posted 02:12 PM on 05/19/2009
- MizLiz I'm a Fan of MizLiz 60 fans permalink
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This only makes sense. Think about it: What's the difference between getting a sum of money, say, $6000 per year, and then you pay for your health care premiums and having the money included with your salary and the employer takes care of the payments? It's the same principle as getting a sum of money and paying off your credit cards -- and being taxed on the money--- or having the credit card outfit writing off your debt and issuing you a 1099? On which you pay tax? Getting something for nothing just can't fly in this economy any more.

    Favorite    Flag as abusive Posted 09:56 AM on 05/19/2009
- helonias I'm a Fan of helonias 262 fans permalink
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Why pay $6k for health insurnce when folks in Europe pay $1200.

Because the HC CEO's need to make $10+ million a year

    Favorite    Flag as abusive Posted 10:49 AM on 05/19/2009
- Cookie100 I'm a Fan of Cookie100 59 fans permalink
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$10 million plus a year! Try ONE HUNDRED MILLION A YEAR!

    Favorite    Flag as abusive Posted 10:54 AM on 05/19/2009

Well for one the employer now has to pay FICA, MC, FED & STATE taxes on those benefits which will likely force the company to reduce their portion of payment or expect the employee to pay 100% of the cost..they also have to pay a person to administer it..

IF the employer is going to just give the money...the employee can be responsible for paying their own premium.

    Favorite    Flag as abusive Posted 10:58 AM on 05/19/2009
- texanna I'm a Fan of texanna 32 fans permalink

See, for me Square One is -- Why should employers be involved in our health care at all? Don't they have enough to do just taking care of business? The second question for me is -- if you don't have a job where will you get the money to pay for market-based health care? Seems to me that without a commitment to provdie health CARE and not just health INSURANCE to everyone, we're no better off than we are with our current mess.

    Favorite    Flag as abusive Posted 11:34 AM on 05/19/2009

The portion employers pay for their employees for their health insurance benefits is tax deferred and a write off on their corporate taxes because these are fringe benefits and employers are "entitled & eligible" to write-off the amount. Employees have a write off as being tax deferred when using the 125 plan for fringe benefits. To Tax employees for "fringe" benefits makes them NOT fringe any more. Do you think this is why President Obama during the debates said that benefits (medical) were an "Entitlement"? Would that mean Taxed or NOT taxed. I believe NOT TAXED. It was John McCain who would be taxing our health benefits if he were elected. Thank God for President Obama!

    Favorite    Flag as abusive Posted 12:28 PM on 05/19/2009
- Gidster I'm a Fan of Gidster 221 fans permalink
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My family coverage under COBRA is $980 per month....... I'd take the $6K a year plan......

    Favorite    Flag as abusive Posted 01:51 PM on 05/19/2009
- Jonni Rae I'm a Fan of Jonni Rae 22 fans permalink

Move On is trying to get 10,000 calls into senators today. I called mine. Call your senators and say that you support a public health care option. We really need to put a lot of pressure on these legislators right now. You can say you support single payer, or no taxation of benefits, or whatever you want, but please call or at least e-mail. Thanks.

    Favorite    Flag as abusive Posted 09:55 AM on 05/19/2009
- texanna I'm a Fan of texanna 32 fans permalink

Well, I would, but with my Senators (Big Bad John and The Cheerleader), it's too hard to get through the Stupid Filter to have an impact.

    Favorite    Flag as abusive Posted 11:30 AM on 05/19/2009
- blood1 I'm a Fan of blood1 12 fans permalink

Unfortunately, I am in the same boat. So after thinking about it, I sent an email to the Democratic Congress representatives who are working FOR Healthcare Reform.

BTW: each time that you hear the GOP argument against a Public Healthcare Plan by citing the Canadian System....ask them for details about the program. I'll admit that their program isn't perfect (but what is?), that they will cite studies from a 2003 report, not the improvements that they have made since that report. As Canada does not provide statistics as a nation, but by providence, the numbers that these Big Corps are using are flawed. If they show wait times, be sure to understand that "emergency procedures" are not included and that the wait times for a procedure are not calculated in using a methodology that Big Insurance wants to admit as being different than what they are using.

    Favorite    Flag as abusive Posted 12:03 PM on 05/19/2009
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When you e-mail a representative not in your state or district, go to their "contact us" page and look for a city/zip in their state. Then make up an address and use the city/zip you find. That will fool the filter. I do it all the time. Works like a charm.

    Favorite    Flag as abusive Posted 01:32 PM on 05/19/2009
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Term limits folks. Get rid of the lifers in the senate and house and set 2 term limits on both. See how much gets done then. They wouldn't have a choice but to work in the best interests of the people, because every politician wants to run for higher office and they'll have to have something to brag about.

    Favorite    Flag as abusive Posted 09:54 AM on 05/19/2009
- XLintLuvR I'm a Fan of XLintLuvR 33 fans permalink
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Unfortunately you'll be throwing out the wheat with the chaff. You'll lose some of your better senators that way. Besides, the bad ones are a reflection of their states in the first place. If John Cornyn weren't senator, we here in TX would elect someone just as horrible although I'll admit that with the coming tide and TX eventually going blue next election, his days are going to be numbered in 2014 and he's the type of senator that'll find himself out on his arse.

    Favorite    Flag as abusive Posted 12:02 PM on 05/19/2009

I live in the bluest part of TX, and where do you see this blueness spreading? Until this state is primarily Hipanic, we have no chance of "going blue." And even then, there are many conservative Hispanics in this state. I agree that TX would find someone just as horrible as Cornyn to run, but I don't see this ending anytime soon. As to Gov. Perry, there is commentary that he is backpeddling on his "secede" mantra because he has some wierd idea of going after national office someday. Unless he is representing TX as a Senator or Congressman, this guy doesn't realize that he has NO chance of being elected to any "national" office. The rest of the country thinks he's a joke.

    Favorite    Flag as abusive Posted 01:25 PM on 05/19/2009
- blood1 I'm a Fan of blood1 12 fans permalink

Gee, and just the other day, all those people from private healthcare industries were busy meeting with the President, all smiles about wanting to bring health INSURANCE (but not necessarily healthcare) to everyone.

All I can do is think about the Lundt attack plan...attack INDIVIDUAL POLITICIANS, Not the President. Isn't this: Attack the message by attacking the messenger?

Hopefully Americans are paying attention as these private entities are trying desperately to protect their turf and profits.

    Favorite    Flag as abusive Posted 09:42 AM on 05/19/2009
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Thank God President Obama didn't allow lobbyist or corporate money on the campaign. He answers to US.

The others in DC are beholden to the corporations, and have to make a valiant effort for the cameras, but the PEOPLE have spoken.
YOU CAN'T FOOL US ALL THE TIME!
UNIVERSAL HEALTHCARE NOW!

    Favorite    Flag as abusive Posted 06:19 PM on 05/19/2009
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