Tuesday, January 12, 2010

White House defends health tax opposed by labor - Yahoo! News

White House defends health tax opposed by labor - Yahoo! News: "WASHINGTON – The White House on Monday defended President Barack Obama's support for taxing high-value insurance plans to help pay for health care overhaul, a levy the AFL-CIO president angrily said 'drives a wedge between the middle class and the poor.'

Obama is scheduled to meet with labor leaders on the issue Monday afternoon. Labor opposes the tax, arguing it would hurt union members who negotiated good health benefits instead of salary increases.

Hours before the meeting, AFL-CIO president Richard Trumka lashed out at the so-called 'Cadillac' tax in the Senate bill.

'The benefits tax in the Senate bill pits working Americans who need health care for their families against working Americans struggling to keep health care for their families,' Trumka, who will be among those at the White House meeting, said in a speech. 'This is a policy designed to benefit elites — in this case, insurers, hospitals, pharmaceutical companies and irresponsible employers, at the expense of the broader public.'"

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