Bush Veto Foreseen On Child Health Bill

Instead of Cigarette Tax, White House Proposes Employees Be Taxed For Employer-Paid Health Insurance

(AP)  The Bush administration said that senior advisers would recommend the president veto Senate legislation that would substantially increase funds for children's health insurance.

The legislation calls for a 61-cent increase in the federal excise tax on a pack of cigarettes. The revenue would be used to subsidize health insurance for children and some adults with incomes too high to qualify for Medicaid — the government health insurance program for the poor — but not enough to afford insurance on their own.

Members of the Senate Finance Committee brokered a bipartisan agreement Friday that would add $35 billion to the program over the next five years. The Bush administration had instead recommend $5 billion.

Sen. Max Baucus of Montana, the committee's chairman, said the proposal would lead to more than 3 million uninsured children obtaining health coverage. But others said that estimate is high because they believe some families that would sign up for the program would have already been getting their coverage through the private sector.

The Senate legislation expands the State Children's Health Insurance Program beyond the original intent of the program, White House Spokesman Tony Fratto said Saturday.

"It's clear that it will have the effect of encouraging many to drop private coverage — purchased either through their employer or with their own resources — to go on the government-subsidized program," Fratto said. "Tax increases are neither necessary nor advisable to appropriately fund SCHIP."

Congress is considering renewing the program before it expires Sept. 30. When Congress approved the program in 1997, it provided $40 billion over 10 years. States use the money, along with their own dollars, to subsidize the cost of health insurance. The federal government covers about 70 percent of the cost.

"Congress needs to deliver a bill the president can sign or they need to send him an extension so that people don't worry about losing their current coverage," Fratto said. "It's important that Congress understands the serious consequences of delaying this or sending the president legislation that he clearly cannot sign."

Fratto also called on the Senate Finance Committee to consider the president's recommendation to tax employees on the health insurance premiums paid by their employers. The president would offset the increased taxes by giving taxpayers a deduction or credit. The result would be a tax cut for most families, but not for those with the highest-priced insurance plans. The Bush administration says such changes could make insurance more affordable for many families.

Republican Sens. Charles Grassley of Iowa and Orrin Hatch of Utah had called on the president Thursday to step back from veto threats of legislation that had not been finalized yet.

[uceslady]

Like I said, what are we spending the tax on liquor for. Put a big tax on liquor as it is the number one killer.

[rushlimpdrug]

after all these years this is the best a compassionate conservative can do.

[jetranger7]

Its All Ridlicious, to think now were going to get Taxed on our Health Insurance is Ridlicious. While Were already over Taxed in other areas, its a shame that our Elected officials in Government can't be more Financially responsible, with the Taxes we already pay, we all should have Health Insurance for everybody ! Theres enough Taxes generated already, just the amount that Big Over the road Trucks pay in Road use Taxes every year, and then the FET Tax they pay for tires, and the sales Tax, and Then theres Taxes on Food, Liquor, Ciggs, Were Taxed on everything and now, the Redneck from Texas, all he can do is come up with this plan,, while he Mis-Spends Multi-Billions in Iraq, Foolishly, and Ya, Osama Bin Laden is still out there roaming around some where,,, most likely at Crawford, drinking Bushs Lemonade with VP-Cheney !

[uceslady]

Put the BIG tax on beer and liquor so the lawmakers in Washington and the state capitals can help pay the bills too!

[walt1944-2009]

Once again we see that the great Emperor Bush wants to tax the middle class out of existence by having the middle class employee be taxed for health insurance premiums he isn't even paying for, but for which the employer takes a deduction against income on the employer's tax return, giving the employer less income and, therefore, less tax to pay. It all shows which side the Emperor is on and what he thinks of the middle class that built the country he lives in!

SIG HEIL, BUSH!!

[Hybdiesel]

Oh how I wish our president had some smarts. But I guess if he did he would just drop the s and m place in a f.

[silentrain]

Tax our Health Insurance!!! Give me a break! Does Bush have a clue?!?!?!?! Get this man OUT OF OFFICE NOW....BEFORE HE DOES ANY MORE DAMAGE!

[tuckerndfw]

How about we impose a five dollar a gallon tax on gasoline? It causes far more damage than anything else.

Assuming the rabid anti-tobacco zealots actually succeed in taxing or regulating tobacco out of existence, on what are they going to focus their zealotry next?

And, how are they going to pay for all these programs currently being funded by taxes on tobacco?

And, when cancer continues to increase, on what are they going to blame cancer?

[tuckerndfw]

How about we eliminate insurance companies and have the government administer health care programs directly?

Insurance companies provide no value added service. They are the "middle men" and when governments rely on insurance companies, they are wasting money. The governemnt is the ultimate "insurance company."

It's time for the government to stop relying on insurance companies to administer health care plans.

[uceslady]

Ever heard of kickbacks or perks? Wonder why people who lobby are needed? There is some personal gain for somebody.

[standlee5]

I don't understand how employees think they shouldn't get taxes on their health insurance benefits. Those of us who purchase health insurance do so with after tax dollars. We're paying taxes why shouldn't they?

[sclaires]

I don't knonw where GWB has his brains but it is not in his head. That is, if he has any brains. To tax employees on the amount of health insurance premiums paid by the employer is completely ridicious. The American people are already paying taxes on everything under the sun now and the low and medium income people cannot afford anymore taxes. I know I can't. Since cigarettes are a major cause of lung cancer, raising the tax on a pack of cigarettes is the best move. Then you will most likely have more people who will stop smoking because of the cost so then raise the tax on beer and alcohol. They cause more injuries and deaths then cigarettes due to the drunken drivers on the roads. Children need health insurance due to all the things that happen to them while growing up. No, GWB is "out of his mind" if he thinks that the taxpayers can afford anymore taxes and especially on something that the employer is allowed to deduct from their taxes.

[jimfinster]

Seems fair to tax cigarettes, since they are a major cause of health care costs.

I would prefer to see a National Health Care system, where any American was able to sign up for reasonable premiums. Risky behavior like smoking would cost additional, which in effect would be a smokers tax. Same for obesity.

[brianbwb-2009]

It's time for the government to stop relying on insurance companies to administer health care plans.
Posted by tuckerndfw,

Now we're talking. The decades of the neocon mantra "private companies do it better" have been proven so many times to be utter BS, but the so called "liberals" abandoned their common sense stand long ago to try to get the "soft fascists" on their side, and became afraid (to this day)to call the "hard fascists" out on this Reaganesque "trickle down" obscenity.

As a result, vital American infrastructure, like health care, education, energy resources, even defense logistics are now in the hands of "for profit" organizations, who by their very nature give as little service and product as they can for the highest price.

The incompetence and inefficiency, not to forget corruption, of private business sucking our taxes out of the treasury is exponentially worse than the outcome the hard fascists claim as the result of government administered programs.

[the_quietman]

Smokers are now a minority in this country. Putting the tax burden for non-smoking issues on them now is taxation without proper representation since they can not possibly elect someone that is sympathetic towards smokers. Or why don't you simply tax all minority groups?

[bigdadpatrio]

All you leftist "let the gov't pay for everything" Dems listen up... why should my tax dollars go to pay for someone else's health insurance. My job requires me to deal with lower income people on a daily basis, and I'm here to tell you it's a matter of PRIORITIES. Many of my clients drive a nicer car than I do, have a 'rent-a-center stereo and Tv center" yet claim they can't afford healt insurance. BULLSH..! Many could afford it if they drove a less expensive car; wasn't paying a monthly payment on that rental stereo/tv center; weren't buying $3-4-8 a day cigarettes/beer/alcohol. PLEASE, it's all a matter of priorities -- why pay for it yourself if you can get the gov't to pay for it? That's exactly what's wrong with our country today -- people with a sense of ENTITLEMENT.

[grammawhamma]

Bigdadpatrio...I hear you. I remember when microwaves were very expensive and so were the dinners that went in them...a woman in line infront of me at the grocery store was buying microwave frozen dinners with her food stamps. You are so right about "priorities".

[vietnam69-70]

It is very simple:

Bush is more interested in protecting the future sales and profits of cigarette corporations rather than the health of millions of children.

And this is utterly shameful.

[billpl-2009]

"Seems fair to tax cigarettes, since they are a major cause of health care costs."
Posted by jimfinster

B.S. Smokers die sooner and quicker than healthy non-smokers.
Not to mention they save taxpayers billions maybe soon trillions in extended social security, pensions, retirement and medical benefits that non-dead people nominally receive.

[billpl-2009]

One simple solution.
Make the kids who get it pay for it.
Sell 18 year bonds and add back in to their income tax when they start work.
no-brainer.

billpl wrote:

"B.S. Smokers die sooner and quicker than healthy non-smokers.
Not to mention they save taxpayers billions maybe soon trillions in extended social security, pensions, retirement and medical benefits that non-dead people nominally receive."

Maybe you could lead by example?

One less moron on this planet will help everyone.

billpl wrote:

"B.S. Smokers die sooner and quicker than healthy non-smokers.
Not to mention they save taxpayers billions maybe soon trillions in extended social security, pensions, retirement and medical benefits that non-dead people nominally receive."

You are an idiot.

Regardless of whether a smoker dies at an earlier age then a non-smoker, it also costs a heck of a lot of money in providing treatment/health care etc etc until they die.

[bluestardad]

IS THIS CHIMP OUT OF TOTAL TOUCH WITH AMERICA OR WHAT?

[mcvet]

That's exactly what's wrong with our country today -- people with a sense of ENTITLEMENT.
Posted by BIGDADPATRIO at 01:38 AM : Jul 16, 2007

Really? You have NO idea what the program is about or what the people who use it go through. We have the WORST health Care system in the industrialized world and you clowns want to stop any effort to improve it. Why? I mean it's not like our standard of living is so high we do not need it...it's DEAD LAST. It's not like we don't spend more and get less than anyone else, we do. What is wrong with you nazi's anyway? There is NOTHING and I repeat NOTHING wrong with Working American's. What is wrong with this nation is GREED pure and simple. Those who have profited and benefited from this great nation simply want to continue to erode our standard of living and keep people dependent and poor.

[navyretired2]

"I don't understand how employees think they shouldn't get taxes on their health insurance benefits. Those of us who purchase health insurance do so with after tax dollars. We're paying taxes why shouldn't they?
Posted by standlee5 at 11:40 PM : Jul 15, 2007"

Because some employees get employer-paid insurance as a "benefit" of the job. By being a benefit, they shouldn't have to pay taxes on it should they not?

That would be just another layer of taxing previously taxed money passed on to the low guy.

[navyretired2]

Is alcohol taxed at the same percentage (i.e. $5 worth of alcohol has the same amount of tax applied as $5 worth of cigarettes)?

Seems like it's government's whimsical and fallback crutch for the last 10 years or so to keep adding taxes to cigarettes. Its all you ever hear about.

And heck since we're talking about "sin" taxes, is pornography, online or not, taxed at the same rate?

[terrapin78]

IS THIS CHIMP OUT OF TOTAL TOUCH WITH AMERICA OR WHAT?
Posted by bluestardad at 06:30 AM : Jul 16, 2007

Why YES he is.

And he is also irrelevant too.

All he can do now is veto legislation and see if his rubber-stampers are with him or agin him.

[afmca]

Everyone must remember that Bush must turn down all this type of legislation because it could infringe on the tax breaks he gave such note worthy and poverty stricken people like Paris Hilton. Without their tax breaks they may only be able to total 6-7 BMWs and year instead of 10 before it would start to impact their lifestyle. Also Cheney has spent the last 6+ years bailing out Haliburton with Iraqi blood money - they don't want to actually have to give any of this back! Anyway poor children are such a pain - 3rd world children work cheaper and don't complain.

[omega39-2009]

Fratto also called on the Senate Finance Committee to consider the president's recommendation to tax employees on the health insurance premiums paid by their employers.

Bush's war on the middle class continues unabated.

[adventurepa]

"tax employees on the health insurance premiums paid by their employers." ARE YOU CRAZY?
That would be just one more example how bush is taking away money from the ones who need it most. ie: the middle class!!!!!

Why not tax the rich, ie: anyone making more than $200,000.00 a year to pay for the coverage of the ones who can least afford it? The poor.
Don't bother Crying me a river you greedy SOB"S.
Be thankful you live in a country were you can be so wealthy.

[grumpas]

That's exactly what's wrong with our country today -- people with a sense of ENTITLEMENT.
Posted by BIGDADPATRIOT

No! What is wrong with this country is people like you! Who don't have an ounce of compassion for anyone or anything (your statement said so). Most of you claim to be Christian's but I haven't seen anything about any of you that represents the religion! You can't stand to see someone get a decent wage at the job they are doing! You can't stand to see someone get ahead that really drive's people like you up the wall. You can't stomach anyone who doesn't believe the same ideological drivel you do. You think anyone who is poor is that way because they want to be! You are truly sick people! You ought to do extremely well in the Republican party! You are just as petty and cold as they are. They all think the same nonsense you do!

[navyretired2]

"Many of my clients drive a nicer car than I do, have a 'rent-a-center stereo and Tv center" yet claim they can't afford healt insurance. BULLSH..! Many could afford it if they drove a less expensive car; wasn't paying a monthly payment on that rental stereo/tv center; weren't buying $3-4-8 a day cigarettes/beer/alcohol."

It's called freedom. Free to buy what you want for you or your family, whether it makes sense or not to most people, as long as it's not illegal. I've seen SHACKS in neighborhoods, hardly bigger than a living room, yet out front will be parked a brand new 2007 $30,000 automobile. While I struggle with the obvious conflict to my optical senses, that doesn't mean I have the right to tell this guy he's right or wrong...neither do you.

[condumism]

Thank you GOP for again exposing yourselves and your sell-out to Corporate America attitude, this time to the number one killer in the USA: BIG TOBACCO! HOw low will you self-centered PIGS go to protect the interests of a few, while doing everyting possible to screw the middle classes of the USA?

VOTE BARAK OBAMA: the only candidate that said he would ban all Corporate Lobbyists from the Halls of Congress. And these lobbyists are indeed the NUMBER ONE PROBLEM with the USA!

[klingon69]

How about we impose a five dollar a gallon tax on gasoline? It causes far more damage than anything else.
Few could afford to drive, that would cause a collapse of the automotive industry, and all the subindustries that support the automotive industry.

Assuming the rabid anti-tobacco zealots actually succeed in taxing or regulating tobacco out of existence, on what are they going to focus their zealotry next?
Increased taxation of food, beverages(non-alcoholic), Alcoholic beverages, medical supplies, children...etc

And, how are they going to pay for all these programs currently being funded by taxes on tobacco?
See above

And, when cancer continues to increase, on what are they going to blame cancer?
Maybe, just maybe, they will realize and admit that cancer is more of an inherited genetic problem, like diabetes and heart disease.
Posted by tuckerndfw at 06:50 PM : Jul 15, 2007
***, Tucker, I'm agreeing with you?

[navyretired2]

"Posted by Klingon69 at 11:05 AM : Jul 16, 2007"

Hahahaha! Several of us are finding ourselves agreeing with people on here on several issues; people that we've vehemently disagreed with on other issues.

Good stuff! Just goes to prove NOBODY is 100% neocon or 100% dumbocrat...there's at least a little commonality in all of us. Keep that in mind when flaming.

[condumism]

What group has the highest incident rate of alcohol abuse and cigarette addiction? US MILITARY PERSONNEL! This is why these guys and gals are sooooooooo mocho: booze gives them the nerve to be mocho, and cigs turn them all into ***.

[sjc_1]

"Tax increases are neither necessary nor advisable to appropriately fund [the State Children's Health Insurance Program]."

You really have to parse the words from the people.
"appropriately fund" to them may not mean the same thing as what it means to us.

This is the disconnect between the so called administration and the American people. The vast majority of the people want things to be done and these guys say no, because they know better. In this case, they are in the pockets of bloated profit skimming health care.

[vietnam69-70]

It's very simple:

Bush is dedicated to protecting cigarette companies rather than the health of children.

Truly shameful.

[condumism]

GOP will pay dearly for this attitude in November, 2008. Not only are these fascists the party of Corporate America special interests, but they are enshrined as the party of Southern Whites that hate the USA as much as their great, great grand daddy['s whom we had to slaughter to death to end their hate for America in the US Civil War (although killing these America hater's obviously didn't do a bit of good.)

[jimfinster]

A veto will be another nail in the coffin for the Republican Party.

[snoopy28173]

Why am I not suprised Bush would veto a bill that would raise a tax to help children who don't qualify for Medicaid because their parents make too much money, but can't afford insurrance because the cost of insurranece is too high? If I were in his shoes, I'd pass the bill in a heartbeat. Maybe the next president will pass it; but that will be too late for some.

[timetrips1]

Typical Bush response. Don't raise taxes, unless it's taxes on the poor. Why on earth does he think it OK to add a tax on EMPLOYEES health benifits. It's already close for most folks on whether or not to buy health insurnace, for those lucky enough to have employer provided/subsidized benifits. Now we'll add a tax the employee must pay on what the employer is providing, which means less people can actually afford the health care, meaning more people without health care. Who does that benifit, why the employers of course, less people they actually have to provide benifits to.

Has this president done anything for anyone who isn't already rich and doesn't really need the help. With what has been wasted on IRAQ we could have funded a national health system for the next 100 years (and still cut taxes!)

[uceslady]

Why has everything connected to kids? (Hospitalization, cigarette smoke, breastfeeding, free breakfast, free lunch, free daycare, etc.) Better be concerned about the breadwinner in the family not the dependents. The family pays the bill, works out a payment plan or files bankruptcy if there is no hospitalization insurance. A percentage of the premiums covers bad accounts. They are going to take care of themselves. Just another way for Uncle Sam to belly up to the insurance companies. You scratch my back and I'll scratch yours...isn't that the way our government works.

[sharpiefan]

Another tax on cigarettes is fine, even though it is probably not a good solution. But to tax those that already have good health insurance, how crazy is that. Lets go out and make it more difficult for those that already have something that we desperatley need everyone to have. All it does is cause employers to water down the benefits that they offer today. It is already difficult for a business to provide good benefits, now we want to make it impossible? I was pretty sure Bush was lkow on brainpower, but now I'm convinved. I'm sure the President and his cronies would not be affected in any way.

[sjc_1]

Bob Dole opposed National Health Insurance in 1993 because he wanted to protect the Health Insurance Industry gravy train. They skim 20% off the top for pushing paper and denying claims.

Dole said that health care was 10% of the economy and you should not mess with it. Well NOW it is 12% of the economy and you have to FIX it before it bankrupts the nation and everyone in it!

[jjreding-2009]

Bush insists on his tax breaks but refuses children's health insurance???????????????? Anybody else see anything wrong with this picture?