Tuesday, January 12, 2010

Breaking the health care logjam: Will unions be exempted from the Cadillac tax?

Breaking the health care logjam: Will unions be exempted from the Cadillac tax?: "One of the biggest sticking points between the House and Senate versions of Obamacare is the financing mechanism. The Senate wants to tax the expensive health insurance plans (Cadillacs) to discourage private insurance companies from writing the policies and making more money. They also want to punish the 'haves' by making them finance the policies for the 'have-nots.' This, of course also deprives people of the freedom to choose how much health insurance coverage they want. It is quintessential freedom-killing, class-warfare politics. The House plan just wants to tax the rich and make them pay for everybody else. Again, standard Liberal fare.

The problem is that the unions, the staunchest of Liberal allies, have extorted bargained for high-end health plans that would be caught in the Cadillac tax trap, and they are none too happy about it. AFL-CIO President Richard Trumka warned today that the Democrats were at risk of repeating this fall the debacle of the 1994 midterm elections if they didn't change their ways."

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