House Democrats Eye Windfall Profits Tax on Insurance Industry

The Hill (10/9, Allen) reports that House Democrats "are floating the idea of a windfall-profits tax on the private health insurance industry as a way to finance their healthcare overhaul, and to drum up support among members of a divided caucus."

House Speaker Nancy Pelosi (D-CA) "called the windfall profits tax idea 'very preliminary,' saying she's asked House Ways and Means Chairman Charles Rangel (D-NY) to look at how much the tax could raise." The Hill adds that the "idea was brought up in a leadership meeting on Wednesday night and brought before the entire caucus on Thursday morning, according to Rep. Gerry Connolly (D-VA)."

The Washington Times (10/9, Haberkorn, Rowland) notes, "Lawmakers declined to discuss any additional details of the tax, such as how much it would raise or at what rate it would be collected." But Rep. Connolly said "the idea was popular with rank-and-file Democrats at a caucus meeting on Thursday." The Wall Street Journal (10/9, Vaughan) reports that Rep. Connolly also said the notion of a tax on expensive "Cadillac" insurance plans was a non-starter in the House.