In an interview with “Fox News Sunday” Health and Human Services Secretary Kathleen Sebelius indicated that a tax on employee health care benefits could be a part of a health care reform bill.

Sebelius was quick to point out President Barack Obama’s desire to avoid taxing employee health benefits saying that, “I think he’s open to discussion but prefers, again, capping the itemized deduction, returning it to the days of Ronald Reagan.” She repeatedly indicated that a tax on benefits would be a last-case scenario if no other means of financing the health care reforms are found.  

As of yet there have been limited details released on possible means of financing, and those such as Obama’s cap on itemized deductions have not been met with much enthusiasm from politicians on Capitol Hill. This has left lawmakers with the need to find another way to generate revenue to fund their trillion-dollar reform plans. Employer-based benefits are undoubtedly an appealing source of revenue as they are currently untaxed.

These statements from Sebelius conflict with those given by Dr. Christina Romer, chair of the Council of Economic Advisers, at the hearing on the tri-committee health care reform bill held by the House Education and Labor Committee June 23.

When asked by Rep. Brett Guthrie (R-Ky.) if a tax on employer-based health care was a possibility, Romer assured him that Obama would not support a bill that included a provision permitting the taxation of employee health care benefits.

This is not the first time that Obama or those close to his administration have indicted that taxing employer-based health care benefits is an option. Their caution is understandable; during the presidential campaign candidate Obama repeatedly labeled such a move as a major tax hike in reference to Sen. John McCain’s (R-Ariz.) health reform proposals.