White House Rethinks Tax Hikes

Mr. Baucus said the administration should look instead for ways of covering the cost of health-care reform by finding more savings within the health-care system. He suggested limiting the tax advantages of employer-provided health care.

Mr. Geithner said the proposal on limiting deductions was intended to underscore the administration's credibility in fighting the deficit, and "to make sure the people understand that we need to do this in a way that's broadly fiscally responsible."