Urged on by Blue Dog Democrat, Max Baucus, the Obama administration appears to be thinking about reneging on a campaign promise. Just maybe, they want to tax employer provided health insurance as income.

The administration’s receptivity to the idea is owed partly to the advocacy of Mr. Baucus, whose committee has jurisdiction over tax policy and health programs, and to support from Republicans. There is less enthusiasm among Democrats in the House, though the health debate is at an early stage and no comprehensive plans are on the table.

Also, Mr. Obama’s own idea for raising revenues for health care — limiting the income tax deductions that the most affluent taxpayers claim — has run into opposition not only from Mr. Baucus but also from his counterpart in the House, Representative Charles B. Rangel, Democrat of New York, who is chairman of the Ways and Means Committee.

Mr. Obama’s proposed limit on deductions would raise an estimated $318 billion over 10 years, or half of his proposed “health care reserve fund.” That is a fraction of the revenues that could be raised from taxing employer-provided health benefits.

Note here that Mr. Rangel represents, among others, the Wall Street bonus babies who would lose heavily if deductions for upper income brackets were eliminated.

So here is the theory at work here: Because we don't know what our employers pay for health care and because our employers pay it anyway, we are perfect little pigs when it comes to our consumption of health care services. This creates excessive demands on the health care system and drives up costs. If we tax health benefits then people will cut back on their health care spending, prices will drop and presto! Utopia.

Now Wonks Anonymous actually knows someone who does have a "gold plated" health plan. He works in Hollywood and the plan entitles him and his dependent to one cosmetic surgery per lifetime. And, if Wonks anonymous thought that this is what would be taxed he would not be too bent out of shape.

Except that there aren't even $318 billion in taxes to be collected on plans like these, let alone $600 to $700 billion. Really we are talking about going after the 90% or so of employer health plans that still offer reasonably complete coverage without out of pocket expenses that would bankrupt the entire family.

Really we are talking about the benefits of organized workers who, while they do not have high incomes, get some measure of financial and emotional security from employer provided health insurance. Really we are talking about increasing the taxable income for many of these workers by 10% or more.

Wonks Anonymous expects that there will be some clever social engineering written into any proposal to tax health benefits. Most likely benefits below a certain amount will not be taxed. That amount will probably be about the amount that it costs for a high deductible, restricted coverage plan in a well run state - for example in Montana.

Because our betters know that we are demanding, fearful children. We are to attached to security and not willing to take care of ourselves. Instead we run to the doctor for any little thing. If we are forced to pay up to $5,000 out of pocket before we get coverage for health expenses we will become wiser and more enterprising. They only want to make us better people.

Or, and this is more likely in Wonks Anonymous humble opinion, more of us will be forced into health plans where we have to choose between doctor visits and rent payments and more of us will skimp on needed care until problems become full blown emergencies. When small problems become medical emergencies, everybody pays.

But at least rich people will still be able to deduct the interest on the mortgage on their second home.