Workers May be Spared Taxes on Health Insurance

Americans may be spared from higher health insurance costs in the future now that lawmakers are having second thoughts about taxing them for employer-provided benefits.

A recent Bloomberg News report notes that leading Senate Democrats are calling on Finance Committee Chairman Max Baucus to back away from a proposal to tax employer-provided health benefits. The plan has been floated as a way to offset the cost of health insurance reform, but lawmakers are reportedly concerned that it would have a negative financial impact on many consumers.

The report also noted that a poll was recently taken which found that 70 percent of the public opposed the idea of taxing health benefits.

"Given input from the polling, given input from our colleagues, I think you'd expect any prudent person would go, 'OK, what are our other options,'" the report quoted North Dakota Senator Kent Conrad as saying.

Elsewhere, a report by Dow Jones says that senators had been weighing a plan that would have taxed health insurance benefits that are worth more than $17,000 for a family of four.