Democratic Congressman Warns of Voter Backlash If Obama Sticks with Tax on Health Benefits

ABC News’ Teddy Davis reports: A Democratic congressman warned Wednesday that his party will face a backlash at the polls in November if President Obama approves a tax on high-cost health benefits contained in the Senate version of health-care reform. “I think it’s a plan that has great political risk for the Democrats,” said Rep. Joe Courtney, D-Conn. “The issue had tremendous potency on the campaign trail in 2008. And frankly, I don’t see any indication that the change of heart that’s occurred among the policy people in the White House has really changed the American people’s hostility to the idea.” Courtney, who has been leading the charge against the so-called “Cadillac tax” in the House of Representatives, made his remarks on a conference call with reporters sponsored by the liberal Economic Policy Institute. He was joined on the call by former Clinton Labor Secretary Robert Reich. Based on ads that the U.S. Chamber of Commerce has already aired, Courtney worries that Democrats will be hammered by Republicans if they tax insurers who offer high-priced plans. The Democratic congressman notes that Obama’s campaign was not at all “bashful” in 2008 about going for John McCain’s “throat” on the tax issue when the Arizona senator proposed scrapping the tax exclusion for employer-provided health-care benefits and replacing it with a refundable tax credit for all Americans.  During a Dec. 23 interview with National Public Radio, President Obama reiterated his support for taxing insurance companies that offer high-priced health-care plans. He also said that he thinks the ultimate financing of health-care reform will be a blend of the Senate bill (which includes the “Cadillac tax”) and the House bill (which includes a surtax on the rich). “I think what we’re going to end up seeing is a little bit of both,” said Obama when asked if he prefers the Senate or House approach. “You are going to have some provisions that are smart that are in the House bill. There are going to be some provisions that are the right thing to do in the Senate bill. For example, I’m on record as saying that taxing Cadillac plans that don’t make people healthier, but just take more money out of their pockets because they’re paying more for insurance than they need to, that’s actually a good idea and that helps bend the cost curve; that helps to reduce the cost of health care over the long term.  I think that’s a smart thing to do.” Courtney, who has persuaded 190 House Democrats to sign a letter indicating their opposition to taxing health-care benefits, predicted that legislation overhauling the U.S. medical system will not get through the House if the Senate does not bend on the “Cadillac tax.” “I don’t see how the bill moves if it’s a ‘take-it-or-leave-it attitude from the Senate,” said Courtney. ABC News’ Matt Loffman contributed to this report.