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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.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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