Obama Removes Health Care Cadillac Tax: Unions Get $60B Exemption
The President met with congress to discuss the Cadillac tax in Obama's health care bill and its effect on union members. Working late into the night, the congressional leader appeared with a compromise that would make the unions happy.
The union will be exempt from the excise tax for 5 years, costing tax payers nearly $60B in revenue. Cost estimates are no longer deficit neutral, causing the congress to look for other means of financing the missing 60 billion dollars.
President Obama had met with angered union leaders on Monday for several hours who believed they should be exempted from the tax.
Hours before the meeting, AFL-CIO president, Richard Trumka, related publicly that the Democrat party was in for a 2010 blood bath on election day if the administration would not force an exemption of the tax. He stated that Union members would stay home on election day if concessions were not made.
The health care bill contains a “Cadillac tax” that was touted by the administration as the number one cost saver. The tax is applied to high-cost insurance plans. The administration thought that these policies were only held by the affluent. but union workers would be affected by the polices as well. When the union heads became aware of the proposal they began to campaign publicly against the plan.
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New Port Richey, Florida, United States