Proposal would impose tax on the value of employer-provided insurance 

What is President Bush's common solution to domestic problems?

Tax breaks.

And a tax break-for some-is President Bush's solution to the nation's healthcare crisis.
But the devil is in the details. President Bush's proposal, which was included in his budget, aims to dismantle employer-provided healthcare by instituting a new tax on the dollar value of health insurance provided by employers.

In other words, the value of the insurance you receive from your employer will be treated as taxable income.

The administration is billing this as a tax on "Cadillac" health plans. That position is irreverent on many levels. In addition to ignoring the fact that healthcare is a basic human necessity and not a luxury purchase, it's a direct assault on the fight of unions to preserve decent health benefits for workers-often at the cost of competitive salary increases.

The White House appeals to the uninsured-an estimated 47 million people-by declaring that the proposal "levels the playing field for Americans who purchase health insurance on their own."
Ironically, Americans for Tax Reform (ATR), which has become infamous for asking state and federal lawmakers to sign a no-new-tax pledge, "applauds" the Bush administration's "bold healthcare proposal."

Both the White House and Americans for Tax Reform assert that workers with employer-provided coverage have a tax advantage over Americans who purchase insurance on their own.
One point neither raises is the existing tax code, which allows taxpayers to deduct medical and dental expenses that exceed 7.5 percent of their gross adjusted income. If you have good, employer-provided insurance, it is highly unlikely you would ever qualify for this itemized deduction.

The bait to this switch: Workers who purchase coverage on their own or receive it as a taxable employer-provided benefit would receive a $7,500 standard deduction for individual health insurance or a $15,000 deduction for family coverage.

In short, the president's plan would lead to the long-term erosion of existing health plans and the continued neglect of the health insurance needs of low-income and unemployed workers.
Tax deductions are only as good as the income you earn; they don't help millions of uninsured Americans who are either out of work or employed at meager salaries.

AFL-CIO president John Sweeney notes that "the Bush tax proposal would actually make those who have coverage pay more and provide no real help for the uninsured." Moreover, the president's budget would cut almost $80 billion from Medicare and Medicaid, and limit eligibility for children who now receive coverage under the State Children's Health Insurance Program (SCHIP).

AFT president Edward J. McElroy sums the situation up: "Rather than undermine existing employer-provided health insurance for workers and their families, we should move toward universal healthcare by expanding Medicare coverage to the uninsured-especially disadvantaged children."