WASHINGTON, July 15, 2007

Bush Veto Foreseen On Child Health Bill

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

  •  (CBS/AP)

  • Photo Essay Smoking Bans

    Some breathe deeply while others fume as tough anti-smoking rules catch on.

(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.

© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 46 Comments
by jjreding-2009 July 17, 2007 12:54 AM EDT
Bush insists on his tax breaks but refuses children's health insurance???????????????? Anybody else see anything wrong with this picture?
Reply to this comment
by sjc_1 July 16, 2007 7:13 PM EDT
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!
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by sharpiefan July 16, 2007 6:35 PM EDT
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.
Reply to this comment
by uceslady July 16, 2007 5:57 PM EDT
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.
Reply to this comment
by timetrips1 July 16, 2007 4:51 PM EDT
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!)
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by snoopy28173 July 16, 2007 4:13 PM EDT
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.
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by jimfinster July 16, 2007 3:39 PM EDT
A veto will be another nail in the coffin for the Republican Party.

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by condumism July 16, 2007 3:22 PM EDT
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.)
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by vietnam69-70 July 16, 2007 3:20 PM EDT
It's very simple:

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

Truly shameful.
Reply to this comment
by sjc_1 July 16, 2007 3:09 PM EDT
"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.
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by condumism July 16, 2007 2:50 PM EDT
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 ***.
Reply to this comment
by navyretired2 July 16, 2007 2:24 PM EDT
"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.
Reply to this comment
by klingon69 July 16, 2007 2:05 PM EDT
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?
Reply to this comment
by condumism July 16, 2007 1:52 PM EDT
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!
Reply to this comment
by navyretired2 July 16, 2007 1:09 PM EDT
"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.
Reply to this comment
by grumpas July 16, 2007 12:46 PM EDT
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!
Reply to this comment
by adventurepa July 16, 2007 12:21 PM EDT
"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.

Reply to this comment
by omega39-2009 July 16, 2007 12:13 PM EDT
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.
Reply to this comment
by afmca July 16, 2007 11:53 AM EDT
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.
Reply to this comment
by terrapin78 July 16, 2007 11:40 AM EDT
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.
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