The American middle class is under fire according to many Democrats and they say it's getting worse. As we noted earlier, Sen. Jim Webb (D-VA) said as much in his response to the president's State of the Union speech last night--when Webb said there are "two different countries" when it comes to getting benefits from a good U.S. economy. The issue of how the middle class is coping may be no more focused that in health care--as costs keep rising.
In his speech last night, President Bush offered a tax reduction plan for health care costs. We've noted that the plan calls for health insurance premium to be taxed for the first time--but the Bush plan calls creates a $15,000 (the amount spent-see below) tax deduction for families and $7,500 for singles.
But can politics be put aside and the plan be taken on its merits? Maybe. Len Berman is from the Urban-Brookings Tax Policy Center and Chris Edwards is from the Cato Institute. Both appeared on "Street Signs."