Jennifer Rubin
Commentary Magazine
1/14/10
According to this report, Big Labor bosses and the Obama administration have cut a deal on the plan to tax the so-called Cadillac health insurance plans:
Under the Senate bill, health insurers would pay a 40% tax on premiums that exceed $8,500 annually for individuals, or $23,000 for family plans. Those thresholds will increase under the agreement reached Thursday, though it could not be immediately learned by how much.
Dental and vision benefits won’t count toward those plans, according to Congressional sources.
Democrats also agreed to add a provision making the tax less onerous on older workers and women, a union official said. Union sources cautioned that the agreement isn’t finalized because it is still being presented to the various unions.
So Obama will still renege on his pledge not to tax those making less than $250,000 — but not as badly as before. And union members will get taxed, but a little less. Aside from the thrill of being part of a historic sellout . . . er . . . grand compromise, what is in this for Big Labor? Their members have health-care benefits. Now they are going to be taxed or have their plans trimmed to subsidize other Americans. That would include many Americans who will be forced to buy insurance they heretofore didn’t want or couldn’t afford. But now they have no choice. They must sign up with Big Insurance for a plan approved by the government.
If ever there were an example of what drives average Americans nuts, this is it. A behind-closed-door deal in which Big Labor, Big Government, and Big Insurance cut an agreement to raise taxes and tell the rest of us what insurance we are going to buy. And the elite media and liberal politicians can’t figure out why there is a rising tide of populist anger out there. Really, it’s not that hard to figure out.
