President Bush’s new health proposal that would raise taxes by taxing more health benefits is “dead for now,” according to a Congressional aide.
The Bush plan would exempt families with health insurance from paying income or payroll taxes on the first $15,000 in health insurance compensation. Singles would not pay income or payroll taxes on the first $7,500 as part of the plan, which would take effect in 2009. The proposal is expected to raise taxes by more than $500 billion over the next 10 years.
Critics of the Bush plan to make health benefits over a certain threshold taxable have said it would leave many older and sicker Americans unable to find coverage.
Nothing will happen with regard to healthcare insurance until 2009 when Congress may have a better chance of helping those lacking health coverage, said Wendell Primus, a top aide to House Speaker Nancy Pelosi (D-CA) speaking during a Washington luncheon hosted by the National Economists Club.
