WHAT DO THEY HAVE TO OFFER BUT REACTION?:

The Knee-Jerk Opposition (Ruth Marcus, January 24, 2007, Washington Post)

If George W. Bush proposes something, it must be bad. Such is the knee-jerk state of partisan suspiciousness that when the president actually endorses a tax increase -- a tax increase that would primarily hit the well-off, no less -- Democrats still howl.

Such is the level of distrust that when the president finally disavows the free lunch and comes up with a program not financed with deficit spending -- indeed, one that would actually bring in extra revenue as the years go on -- Democrats still howl.

Listening to Democratic reaction to Bush's new health insurance proposal, you get the sense that if Bush picked a plank right out of the Democratic platform -- if he introduced Hillarycare itself -- and stuck it in his State of the Union address, Democrats would churn out press releases denouncing it. [...]

The Bush plan starts with an assessment that has long been clear to sensible people across the political spectrum: The way the tax code now treats health insurance is unfair, regressive and counterproductive.

The fact that employers can deduct the full cost of health insurance premiums means that the richer you are, the bigger tax benefit you reap. That built-in advantage is exacerbated by the fact that the better-paid tend to have pricier insurance.

This unlimited subsidy increases wasteful spending, encouraging employers to purchase gold-plated plans and employees to use them. This drives up the cost of health care and, ultimately, insurance in a vicious cycle that ends up increasing the ranks of the uninsured.

Meanwhile, those who don't have employer-sponsored coverage get no tax break; the Bush plan would not only help those who already buy insurance on the private market, it would also encourage those currently uninsured to purchase coverage.

As Jason Furman, a leading Democratic economist, wrote last summer in Democracy: A Journal of Ideas, "[R]educing subsidies for pricey plans would likely lead to a health insurance system that includes more cost sharing, promotes more consumer consciousness, and plays a modest, but potentially meaningful, role in restraining health spending."