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Obama Removes Health Care Cadillac Tax: Unions Get $60B Exemption

by Albert Milliron | January 16, 2010 at 11:51 am

788 views | 62 Recommendations | 9 comments

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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Rory Cripps

at 12:15 on January 16th, 2010

Thanks politisite!

This is quite a revealing story and deserves much more media attention than it's been getting.

Thuggery and buggery are alive and well vis a vis the Obama Administration and the Democratic Party. The same thing applies to the Republican Party--however, the Republican Party is presently sitting in the back seat.

This begs the question: Is there really a dime's worth of difference between the Dems and the Repubs?

Karl Gotthardt - albertacowpoke

at 12:24 on January 16th, 2010

This whole healthcare reform is becoming an exercise in passing something, regardless of what the outcome is.

From my perspective in Canada, I must ask myself where are the uninsured getting insurance. Yes they have placed limitations on insurance companies but medicaid and medicare are still well and alive.

Medicaid is available to people below a certain income, while the working poor who are slightly above that level are still in the same boat of being unable to afford insurance. If I have it wrong someone please clue me in.

Hugh Askew

at 18:38 on January 16th, 2010

"This whole healthcare reform is becoming an exercise in passing something, regardless of what the outcome is. "

Ain't it the truth?

Shootfire, it could be about illegal immigrants killing whales with a carbon cap, and as long as it gets passed, why - Hallelujah Brother, we got us some Health Care!

Well said, cowboy.

Karl Gotthardt - albertacowpoke

at 12:49 on January 16th, 2010

Here is an interesting link on the Healthcare bills 11 goals

J2B (not verified)

at 15:24 on January 16th, 2010

Meanwhile, it's reported that Goldman Sachs, Morgan Stanley and JPMorgan Chase combined have set aside $47 billion for bonuses. It's been a "good year on Wall Street," Hall tells NPR host Robert Siegel. If these bankers donated 10% of their bonus, Haiti would get $4.7 billion. Mind boggling.

Rory Cripps

at 16:29 on January 16th, 2010

J2B (not verified):

Obama is nothing but a fraud, a fake, and a phony! He is, and always has been, in bed with Goldman Sachs, Morgan Stanley and JPMorgan Chase. The dupes that voted for his "hope and change" are just that--dupes! Hopefully the American people will learn from their "Obama mistake". How's that "hope and change" working out for y'all? Let's be honest now! lol!

Edmund Jenks

at 15:44 on January 16th, 2010

If this is such a concept - Government run healthcare, for all Americans ... why are so many union organizations and State Senators (read that Ben Nelson) asking to be exempted?

G. Karber (not verified)

at 14:05 on January 17th, 2010

A recent Harvard study showed that 45 thousand people die each year in America because of an inability to pay for health care. Anyone opposed to health care legislation should defend this, or provide alternative solutions to preventing what amounts to around 15 9/11s each year.