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Fact Check No. 7: Right Track/Wrong Track? Taxing Benefits

June 24, 2009 11:04 PM

Hovell ABC News’ Bret Hovell reports: When Charlie Gibson challenged President Obama to reconcile his harsh criticism of taxing health care benefits during last year’s presidential campaign with the current reality that he may have to sign a bill that does exactly that, Obama maintained that he did not like the idea, but would not rule it out.

During the campaign, part of Republican nominee John McCain’s health care reform plan including taxing the value of the health care benefits employees receive from their employers. Candidate Obama issued one of his harshest criticisms of McCain for that plan.

"For the first time in American history, he wants to tax your health benefits," Obama said on the campaign trail last fall. "Apparently, Senator McCain doesn't think it's enough that your health premiums have doubled. He thinks you should have to pay taxes on them, too."

But the reality of reforming health care from the White House has changed that. Despite campaign rhetoric, as president, Obama has refused to rule out a tax on money paid into a health plan, creating the appearance of a flip-flop on the issue.

Tonight, Obama argued that taxing benefits is still not his first choice as a way to pay for health care, but that some compromise might have to be reached in Congress.

"You went after him for suggesting that we tax that money," Gibson said to Obama.

"I continue to believe that it would be the wrong way to go for us to eliminate the deduction, or the exclusion, on healthcare benefits," Obama replied. "That essentially taxes current benefits."

But, he said, among the options being discussed in Congress to cap the exclusion of healthcare benefits so that so-called gold-plated plans might pay more in taxes, might have to be part of the conversation.

"There’s going to have to be some compromise at the end of the day," Obama said.

Visit ABC News' special section on health care here.

June 24, 2009 in Health Care | Permalink | Share | User Comments (16)

User Comments

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I'm sorry but when McCain was saying that Obama no experience about any of this, he was right. Obama is delegating everything out and is basically the spokesperson. I did not vote this election b/c I am disgusted w/ both parties! This man is taking this country to hell in a handbasket! I agree that things need to be changed but what people aren't seeing is the OVERALL agenda...he wants to wrk on the illegal aliens to be legalized, GREAT!!! More money to add! Stop w/ the pandering & pimping for votes and think realistically!

Posted by: Hope | Jun 25, 2009 12:38:54 AM

This is an "Imputed" Tax.. It is UNCONSTITUTIONAL - Period ! You could be taxed an imputed tax for living somewhere for free (even as a guest) and be taxed the average rent for where you live. Grow a garden? You could be taxed for the value of the food you grow - share with the neighbors? - They could be taxed for what you gave them.. Oh, and if you were thrift and paid off your home, then you would be taxed at the average payments for homes in your neighborhood.. Tell you what folks - you better elect those that are Constitutionalist and Oath Keepers - otherwise, you will find yourself paying an unconstitutional "head tax" - what happens when you can't pay it? Better think this "Imputed Tax" issue over..

Posted by: Aristocutionor | Jun 25, 2009 1:29:56 AM

D.C. Metroliner crash is a metaphor
for Obama's takeover of government.
The more you accede to his power-grab
the more often you'll see "unavoidable"
collisions. He's got a one-track mind
and a one-track agenda.

Posted by: Trajan | Jun 25, 2009 1:32:12 AM

I'm a democrat and I think it's safe to say that if the Obama Administration taxes healthcare benefits to fund a new healthcare policy that he WILL NOT be reelected.......I guarentee I won't vote for him if this comes to fruition.

Posted by: dk | Jun 25, 2009 2:23:53 AM

Health care for all! not only the privileged but the those with jobs and those that are jobless. Obama's on the right track.

Posted by: Stanley | Jun 25, 2009 4:23:22 AM

If Obama proceeds with this idiotic health care plan of his....he can kiss re election in 2012 GOODBYE literally !!!! This and cap and trade will KILL his chances of even THINKING about being re elected !!! Why is he PUNISHING people who HAVE, LIKE, and PAY FOR their health care to pay for OTHERS? Tell you what....I am considering DROPPING any plan I have JUST SO I WONT be paying for ANYONE ELSE....how do you like that Obama? I will just leech off the system like everyone else does !!! If they don't have the funds to pay for the have nots...they eventually will have to CUT THEM OFF TOO !!!

Obama lies, you will NOT be able to "keep your current plan or current doctor"....ALL employers will DROP current coverages and you will BE FORCED onto Obama Care !!! Obama is jealous that SOME of us haven't "experienced" some of those nasty ghetto free clinics yet I suppose? He wants to make us "all the SAME" !!! Doctors will run for the hills from Obama Care...they will no longer get "paid too much" per what some people think...however, would you rather have a doctor paid too much...OR NOT HAVE ONE? Doctors will "opt out" of this mess just like they did HMO'S years back....You WILL NOT have your own doctor....and the ONE YOU DO HAVE will be inexperienced and NOT a quality one and YOU WILL BE WAITING IN LINE for substandard care and die waiting for operations....fewer doctors and ALOT more people folks.....doesnt take a rocket scientist to figure it out !!!

Posted by: Char In Ohio | Jun 25, 2009 4:56:18 AM

Al Jazeera ABC should have told the "real facts" on this mess .....People will be sincerely DUPED if they believe what was shown in this infomercial.....

The GOVERNMENT will have TOTAL CONTROL over whether you LIVE OR DIE....once they are the only GAME IN TOWN....they will raise rates, deny even MORE care, make you wait longer IF you get seen AT ALL ....and God knows WHAT ELSE.....YOU WILL HAVE NO CHOICE TO FALL BACK ON !!!!

Anyone who THINKS this is some "good idea" is VERY MISTAKEN.....this is another way to CONTROL the American people.....don't "think" like the Government? NO health care FOR YOU !!!!

Posted by: Char In Ohio | Jun 25, 2009 5:00:56 AM

I don't think obama has a clue to what he is doing except running this country in the ground and abc is helping him do it, that is why I will continue to watch fox news

Posted by: tintman | Jun 25, 2009 5:04:33 AM

sorry, "Every question chosen by ABC.."

Posted by: klara | Jun 25, 2009 6:37:06 AM

Hope wrote: "I did not vote this election b/c I am disgusted w/ both parties!" +++++ Then why bother criticizing? You could have voted for a wide range of candidates, from those who want no government involvement at all to those who want single-payer government-only insurance. But you didn't bother.

Posted by: The_Mick | Jun 25, 2009 8:32:07 AM

Here are 2 things, I'm unemployed because I design houses, and guess what, nobody is building houses, I am drawing unemployment and going back to school to change careers, even with this there is no way that I would want the goverment to put into place this "health care" the administration and ABC are pushing. I know that when I get out of school and back into the workforce I want my OWN health care choice and not the Obamacare. The problem here is that the powers that be are so far above this fray financially this will not affect them, so why will they worry about what they are foisting upon us? And to the lady who didn't bother to vote, you don't have a dog in this hunt, what you get for sitting out is what you get.

Posted by: Sharbuster | Jun 25, 2009 8:59:16 AM

I don't mind being taxed a bit on the front end if it stops the bleeding of increasing deductables, co-pays. Also my company with 800 employees changed plans 3 times in 5 years & my doctor of 12 years is no longer in the network causing me to pay even more, don't give me that crap of government coming in between when big wealth insurance already is.

Posted by: watching | Jun 25, 2009 9:14:15 AM

"I know that when I get out of school and back into the workforce I want my OWN health care choice and not the Obamacare."

!WRONG!
you will have to take what's offered you or pay full premium - that is your choice

Posted by: actually | Jun 25, 2009 9:17:53 AM

Last night's telecast of Health care reform by Charlie Gibson and Diana Sawyer was more like a pep rally for Obama's health care reform plan than an open discussion of the facts and true issues of the plan. It is because of this type of liberal media reporting by ABC that I will no longer watch any of your programs.

Posted by: William Davis | Jun 25, 2009 9:35:42 AM

Just because they didn't disrespect the president to your approval FOXY does not mean tough questions were not asked. And quoting publicans is not fact checking.

Posted by: openurmind | Jun 25, 2009 9:53:05 AM

I bet people argued similarly when taxes for public schools and mandatory attendance began.

Make my kid go to school? Unconstitutional!

Why should I pay for schools when my kids are grown up (or since I have none)?

Pure Socialism! Purely Unconstitutional!

Posted by: The_Mick | Jun 25, 2009 10:09:31 AM

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