Corner, Backed Into
by publius
The Obama campaign has a problem -- it needs more revenue for health care coverage reform. But increasing revenue is politically problematic.
One potential source of funding is to tax employees' group health benefits by imposing a modest cap on the amount that can be excluded. It raises revenue, and it's actually good progressive policy. The problem, however, is that Democrats are terrified to do it. And as Jon Cohn reports, Reid has apparently vetoed the proposal.
Hopefully, we'll find money elsewhere - the reform is too important. But a lot of the blame here falls squarely on the Obama campaign's demagoguery. They bashed McCain over the head with this, and now they've penned themselves in. McCain's proposal wasn't bad because of the tax per se, but because it would have thrown people out of employer health care and into a not-regulated-enough individual market where they lack bargaining power, information, low deductibles, good coverage, etc.
It's just another a reminder that what you say before the election matters. If you say the things you want to do, you have a mandate and political cover to do them. If you don't, you won't.
And one last general point -- the campaign attacks also reinforced the broader anti-tax narrative that is hurting progressive priorities and, by extension, the nation. At some point, that narrative has to change.
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