Today, thousands of activists around the country are bombarding Congress with calls. Their message? Don't tax health care benefits of middle class families!
Click here to call your elected officials in Congress and give them this message.
More on the excise tax after the jump...
The case against taxing the benefits of middle class families is clear. As Lawrence Mishel explains, the idea that a decrease in the cost of health care benefits would inrease a worker's wages is tenuous. More likely, the effect of the tax on worker benefits would be to shift more costs to workers, either in the form of higher deductibles or less health care (which ends up being more expensive later on):
What will happen when a 40% excise tax kicks on plans with higher premiums? Companies will lower the value of the plans (lowering the premiums under the threshold for the excise tax) and make up the difference by raising the amount employees have to pay out of pocket. Or, employers could simply cut benefits. In other words the health care that is now paid for by the insurance plan will, after the excise tax, be paid for by the worker. It is possible that cost shifting to the worker could lower costs in the short run if workers don't spend as much on care, such as not going to the doctor when they have symptoms or postponing that dental clearning. But what if the symptoms were actually the first sign of cancer? Or the lack of preventive dental care led to expensive dental surgery later on? Their delayed care will be more costly - not to mention the consequences for their health.
The excise tax idea is, therefore, directly at odds with the other main goal of health reform - to get people better care. Taxing health care benefits is designed to get employers to spend less on health care. That policy will directly shift costs to you, and that means higher deductibles, less choice of doctors, and worse health benefits.
A tax on benefits will only make health care worse for workers, piling another burden on top of families already struggling in this economy.
There are better ways to pay for health care than this tax, which is in the Senate bill. The House bill, by contrast, is paid for by a small surtax on just 1% of Americans - wealthy couples with over a million dollars in income and individuals with incomes over $500,000. These are people who can afford to pitch in to pay for health care, and they are the ones who should be asked to do it, not the American worker.
House and Senate negotiators continue to look at this issue. House Democratic leaders are looking to change or remove the tax, including talk of expanding the Medicare payroll tax to include investment income as well, a move that would ask those who can afford it to pay more to finance health reform instead of the American worker.
That's why it's crucial to let Congress know how you feel about the excise tax today. Click here to call them and give them a piece of your mind.
There is still time to finish reform right and fix this bill in conference. Will we get national Exchanges that protect consumers? Will we close a gaping Senate bill loophole that could allow insurers to charge more if you are sick? Will we make health care affordable at work by asking employers to pitch in their fair share? These issues are important, and they're worth fighting for.
So please, pick up the phone and talk to your elected officials. Click here to call.
(also posted at the NOW! blog)
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