"Read My Lips ..."

Well, poo. Today's topic was going to be the Fed, but I'll have to skewer them later. (May not happen until next week, as the rest of this one will be my last chance to spend time with my daughter before she goes off to college.)

But then I got this little gem of an e-mail from our HR person at work:

"EBC [our flexible spending account provider] has sent me notification about possible changes to flexible spending accounts. Congress is considering eliminating flexible spending accounts, capping flexible spending account contributions, or prohibiting flexible spending accounts from reimbursing over-the-counter medical items as ways to help finance its developing health care reform legislation. These changes would allow the government to collect more taxes and offset some of the costs associated with health care reform. It would also take away money-saving benefits that we have access to currently. EBC is understandably opposed to these proposals. If you are also opposed to these changes EBC has set up a website with information on these proposals and ways to express concerns about these changes. The 'Action Center' at the website enables you to email a prewritten or personalized message to your state representatives and senators. The website is www.SaveMyFlexPlan.org."

Now, how is this not a tax on the lower and middle classes? After all, highly-compensated employees are required to opt out of FSA plans. So this will hurt the people who need it most. So much for soaking the rich.

And it'll also hurt the economy, by reducing discretionary spending. Many employees use medical FSAs to spread out payments for elective procedures from lasik to orthodontia. That way, they can have the procedure done, then pay for it over the course of the year by having it deducted from their pay. If they can't spread the costs - effectively writing themselves an interest-free loan - they might not buy the procedure. And elective medical procedures are part of discretionary spending.

Also, some employees use the accounts to supplement vision care insurance, which typically provides free glasses each year, but just the basics. Many people use the FSA to spread out the cost of upgrades, like nicer frames, polished lens edges, photochromatic treatment, etc. Again, spending will be reduced.

The good news in all this is that even though fewer people will be getting junior's teeth straightened, since they won't be doing lasik, they won't notice the crooked choppers.

Granted, the spending piece of this isn't the biggest problem with it. The biggest problem is the regressive tax aspect. Coming from a Democratic Congress, you'd think they'd take a different approach.

As for President Obama, he's looking more like a weather vane in a tornado every day. First it's "health care reform," then when the backlash from the right hits, it's "health insurance reform." Then, when the Blue Dogs howled, he dropped the government option. Then, when the far left cried, Gibbs said no, it's still on the table.

I increasingly get the impression that the President doesn't know what the plan should look like, or will cost, nor does he care. He just wants to pass health care reform - and I'm not sure he can even articulate why, the way he's been stammering through the town hall meetings.

Of course, I can. And so can Bill Clinton. It's that political imperative thing.

But I'd have more respect for this president if he'd put forth the plan he wants, sell it, and when the heat comes, from whatever direction, be a leader and stick to his guns, on principle.

Not only would I respect him more - even if I didn't agree with the plan - but I'd trust him. As it is, I can't trust a president or a Congress who say they're going to cut taxes for 95% of Americans, then seek to tax a benefit that the lowest earners on the wage scale use.

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Want to know my tax idea?

With all these freaking bailouts, and mortgage modification programs, etc. -

I believe the rest of us should be able to claim all of the people who've been foreclosed on as our dependents. After I'll, if I'm making your mortgage payment, you're financially dependent on me. At last estimate, there will be 1.5 million foreclosures when all is said and done.

And, this plan would be good for the economy, as most people tend to spend their tax refunds. And with 1.5 million dependents, that's a heck of a refund.

What's not to like?