The Senate is weighing whether to tax employer-sponsored health plans as a way to help pay for Obamacare repeal, according to a published report.
The idea is not yet included in a working draft of the Senate GOP's healthcare proposal, and comes with fraught political ramifications and strident opposition from business groups.
The Wall Street Journal reported that the issue is being considered amid the negotiations over a Senate version of the American Health Care Act.
But any change to the tax break, which says that health insurance is not income for employees and therefore not subject to payroll taxes, would ignite opposition from major business groups.
Sen. Rand Paul, R-Ky., put together an Obamacare replacement plan this year that kept the tax break in place. However, he offered the same tax break for plans on the individual market, which is for people who don't have insurance through work.