A Taxing Decision

Trying to follow the ins-and-outs of health care reform is a full-time job. But in the end, the issue will come down to one simple question: How will gov't pay for reform?

-- As Pres. Obama discussed 6/13 and will further outline today in Chicago, cutting costs only gets you so far. Same with a potential compromise on malpractice to woo wary docs - something that could alienate trial attys, some of Dems' top donors. The rest of the money has to come from raising taxes. Despite WH pushback 6/14 on taxing benefits by Biden and Sebelius, it's clear the issue remains, well, an issue in the Senate.

-- Labor is pushing back on the idea of taxing benefits over $15K, presenting it as a middle-class tax increase. Meanwhile, Dem strategists fret about forcing their vulnerable incumbents to vote to raise taxes in an economic downturn. One strategist told The Hotline that a GOP attack on taxes worried him more than critiques focused on "socialized medicine" or "rationing."

--Obama's prescription for health care is that short term pain yields to long term gain. But we also know that change in a system as complicated as this one will be slow. How long will Americans wait for the change that they'll be asked to pay for?