Senator considers taxing health insurance benefits

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One of the Democratic senators working to reform health care in the U.S. has said he would consider taxing health insurance benefits, a move that

Max Baucus

Senate Finance Committee Chairman Max Baucus (D-Mont.) said “a tax provision should be on the table,” according to a report from Reuters. He added that the pre-tax accounting for health premiums is “too aggressive. It skews the system.”

Baucus wants to limit the tax benefit, not eliminate it, the report said.

The majority of U.S. workers receive health insurance as a benefit from their employers and it is not taxed as income. As small businesses struggle with the bad economy, many are choosing to cut health benefits offered to employees, in many cases as a means of staying in business.

About 45.5 million U.S. residents lack health insurance, including about 11 million who have access but choose not to take it. About 160 million workers in the U.S. receive health benefits through work, where group benefits are cheaper than if obtained as an individual.
Baucus is one of several members of Congress seeking to reform health care in the U.S.

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