Somehow I missed this story. I'm kind of surprised that it isn't being made more of, considering it's a major theme of the State of the Union and it shows Bush up to be as much of a tax hypocrite as his father--except that his father didn't concentrate his hypocrisy on the middle class.
This story is from Saturday. Today's
story on Bush's ratings on the eve of the SOTU indicates that Grover Norquist has given his blessing to this idea. :wtf:
http://www.nytimes.com/2007/01/21/washington/21health.html?_r=1&oref=sloginBush to Urge New Tax Plan for Health Care Coverage
By SHERYL GAY STOLBERG and ROBERT PEAR
Published: January 21, 2007
WASHINGTON, Jan. 20 — President Bush intends to use his State of the Union address Tuesday to tackle the rising cost of health care with a one-two punch: tax breaks to help low-income people buy health insurance and tax increases for some workers whose health plans cost significantly more than the national average.
White House officials say Mr. Bush has decided to forgo the traditional formula for the State of the Union — a laundry list of ideas, many of them dead on arrival — in favor of a more thematic speech that will concentrate on a few issues, like health care, immigration and energy, on which he hopes to make gains with the new Democrat-controlled Congress.
The basic concept is that employer-provided health insurance, now treated as a fringe benefit exempt from taxation, would no longer be entirely tax-free. Workers could be taxed if their coverage exceeded limits set by the government. But the government would also offer a new tax deduction for people buying health insurance on their own.
“I will propose a tax reform designed to help make basic private insurance more affordable,” Mr. Bush said in his weekly radio address on Saturday, “whether you get it through your job or on your own.” He did not offer specifics, but an administration official provided details of the plan.
The proposed plan is a startling move for a president who has repeatedly vowed not to raise taxes. And it is certain to run into opposition from business groups, labor unions and, most of all, the Democrats who now run Capitol Hill.
“It’s a bad policy,” Representative Charles B. Rangel, the New York Democrat who is chairman of the House committee that writes tax legislation, said in an interview Friday night. “We are trying to bring tax relief to the middle class. The president is trying to increase their tax liability. This proposal is inconsistent with what the majority is seeking in the House and the Senate.”
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