Bipartisan Effort Underway To Oppose Employee-Sponsored Health-Benefit Taxes

Representatives  Joe Courtney (D-Conn.) and Tom Cole (R-Okla.) sent a bipartisan letter to the Super Committee on Friday urging its members not to incorporate new taxes on employer-sponsored health benefits in their effort to reduce the deficit.

“Efforts to cap or to eliminate these tax exclusions would have far reaching consequences that would not only reduce health coverage for millions of Americans, but would also increase long-term federal spending obligations,” the letter argued. 

“Considering these consequences would negate federal tax income generated from the change and would have little impact on reducing our federal debt,” the letter continued, “we would encourage you to reject proposals to scale back or eliminate tax exclusions for employer-sponsored health coverage.”

The bipartisan letter was cosigned by 160 House members.

Republican Leaders Reaffirm Tax Promise

After not meeting a bipartisan agreement about the lingering deficit problem, House Speaker John Boehner(R-OH) along with fellow Republican leaders reaffirmed their belief that tax increases will not benefit the American people.

Rep. Cathy McMorris-Rodgers insisted that the Republican party has been helpful in the negotiations.

“Every step of the way the House Republicans, this new majority, has been a part of the solution”, McMorris-Rodgers said, adding that the President and Democratic party need to be more open to solutions they have been placed on the table to reduce the debt.

Sander Levin: Taxes Must Be On The Table In Deficit Talks

By Philip Bunnell

During an appearance at the Center for American Progress Friday, Rep. Sander Levin (D-Mich.) acknowledged  that there needs to be serious spending cuts, but repeatedly said that some tax increases on the wealthy should be part of any serious deficit reduction plan.

Levin was also very critical of the implications of the Republican proposal. The Michigan Democrat accused the GOP of trying to “rig” tax reform and make the Bush tax cuts permanent by fixing tax revenue at 18-19% of GDP.  Levin pointed out that, “during the 5 years we have had a balanced budget since World War II, revenues have averaged 20% of GDP.”

Republican legislators have indicated that they are not open to increasing taxes on any Americans to cut the deficit. Levin’s statements show that the upcoming talks on cutting the debt will continue to be starkly divided by political lines.