Legal Commentary

Will The Excise Tax Kill The Health Bills?

By Big Tent Democrat

With support for the [excise] tax eroding, Congressional leaders are searching for alternative sources of revenue. [. . . L]abor leaders have backed away from the [exise tax compromise] in the wake of the special Senate election in Massachusetts. “I do not believe there will be an excise tax enacted,” said Larry Cohen, president of the Communications Workers of America. [. . .]

[More...]

A wide range of House Democrats continue to criticize the tax as bad policy, even with the changes negotiated by labor leaders and the White House. Moreover, House Democrats said, the tax is bad politics because it would set the middle class against the poor — people struggling to keep health insurance against people struggling to get it. [. . . A]s a practical matter, labor leaders said, the excise tax was killed by the election in Massachusetts, where the Republican candidate, Scott Brown, won the Senate seat long held by Edward M. Kennedy. In opinion polls and in conversations with lawmakers, Massachusetts voters expressed deep hostility to the excise tax. [. . .] Representatives Edward J. Markey and Richard E. Neal, said they were struck by the vehemence of opposition to the tax in their districts. Mr. Markey recalled that a constituent had poked him in the chest and said: “Eddie, I’ve voted for you my whole life. But if you think you will tax my benefits and give the money to Ben Nelson in Nebraska, you’re crazy.” Senator Nelson, Democrat of Nebraska, voted for the bill after it was rewritten to provide extra Medicaid money to his state.

Full post as published by TalkLeft on February 16, 2010 (boomark / email).