New fiscal hurdle for health care reform

July 16, 2009

After numerous fits and starts, the issue of health care overhaul took off this week, with House leaders introducing their preferred approach and the Senate panel created to looks at the issue also coming up with a plan.

Now, however, the person in charge of determining the costs of legislation says the revamp efforts being discussed now could make things worse.

Elmendorf2 Congressional Budget Office Director Douglas Elmendorf testified before a Senate committee today that the bills now being considered on Capitol Hill do not propose the fundamental changes
needed to significantly reduce current federal health
spending trends.

In fact, the Washington Post reports that Elmendorf believes that "instead of saving the federal government from fiscal catastrophe, the
health reform measures being drafted by congressional Democrats would increase rather than reduce public spending on health care, potentially
worsening an already bleak budget outlook."

Despite holding a majority in both the Senate and House, Democrats are not not united on just how to provide health coverage for all Americans, particularly the almost 46 million uninsured individuals. Elmendorf's position is not going to help the party as it works to get legislation through Congress.

One of the steps that Elmendorf says needs to be taken is ending or limiting the tax-free treatment of
employer-provided health benefits, a topic that already has divided lawmakers.

So while some on Capitol Hill were hoping to have a health care measure completed before the August recess, Elmendorf's warnings could prompt opponents of the legislation in both parties to increase their efforts to halt or at least slow it down.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment