I just heard a news interview with Sen. John McCain. Everyone was talking in shocked tones about how people may get taxed on their health benefits in order to bring in enough funds to start a national healthcare program.
At first, I was shocked: How could they do such a thing? But this was a knee-jerk reaction. Then I started thinking about it.
Say your income is $30,000 on the books, but your benefits add another $5,000. You're really making $35,000, right? So why should you get $5,000 tax-free when your neighbor might be paying taxes on his $35,000 income and having to get his own healthcare, which adds to the expenses he's incurring?
A tax on health benefits seems fair.