Posted on 08/12/2015 4:06:50 AM PDT by markomalley
Democrats and unions have been steadfast in their defense of Obamacare, except for one provision: the controversial "Cadillac" tax. But will the bipartisan desire to repeal the tax be enough to get approved by President Obama?
The "Cadillac" tax got its name because it goes after very expensive healthcare plans. The tax, intended to generate revenue for Obamacare, starts in 2018, and will tax 40 percent of the value of health plans that exceed $10,200 for an individual and $27,500 for a family.
There's some bipartisan momentum to repeal the tax, as there are two bills in the House that would do so. But neither bill has gotten anywhere in the House.
A measure sponsored by Rep. Joe Courtney, D-Conn., and another bill sponsored by Rep. Frank Guinta, R-N.H., were referred to the Ways and Means Committee. So far the committee hasn't taken up either bill.
Committee spokesman Brendan Buck said any effort to repeal the tax would "likely be part of a larger effort to undo the law." There haven't been any bills introduced in the Senate yet that just repeal the tax, although it is mentioned in larger repeal efforts.
Even if a standalone bill could get past the House and the Senate, it appears likely President Obama would veto it.
But an intense lobbying effort has recently geared up and hopes to persuade the president to change his mind. The lobbying group Alliance to Fight the 40 was created last month to fight the tax, and is not focusing on other parts of the healthcare law.
"Our feeling is that this provision is not central to anything doing the operations of the law," said James Klein, president of the American Benefits Council, an advocate for employer-sponsored health plans. "There is no question that the president is not supportive of this change now but we think in the face of a big bipartisan push hopefully he would be persuaded."
The council is helping coordinate the coalition, which includes the construction worker union Laborers' International Union of North America, mega insurer Cigna and pharmaceutical giant Pfizer.
Donald Trump has been pretty consistent about the possibility he will run for president as an independent. He wants to run as a Republican, Trump says, but if he is not "treated fairly" in the primaries, he might bolt the GOP for a third-party run. (Trump, of course, will decide what constitutes being "treated fairly.")
But not too long ago, in a July 7 phone conversation, Trump not only said he preferred to run as a Republican but discussed at some length the damage a third-party run would do to the chances a Republican, or anyone else, would have of defeating Hillary Clinton in 2016.
I had gotten in touch with Trump because I was curious why he wasn't already running as an independent.
Unions, a perennial Democratic ally, are also fighting the tax because they believe it could affect the middle class.
"There is no doubt that this health care excise tax threatens every American worker and it must be repealed," Douglas J. McCarron, president of the carpentry union United Brotherhood of Carpenters, said in a statement. The union is part of the lobbying group.
Unions are worried the tax could hurt generous benefits packages negotiated from large companies.
The tax is expected to generate $87 billion in revenue from 2018 to 2025, according to estimates from the nonpartisan Congressional Budget Office. The office estimated that a majority of that money will come from higher income and payroll taxes since employers will switch to less expensive plans.
But Klein told the Washington Examiner, "No employer that I have spoken to over the last five years believes that is what is going to happen."
Of course, I'm sure the Drunk and the Turtle will be happy to accommodate those key Republican base constituencies. (oh, wait, they're not GOP base? They'll still accommodate...)
I don’t plan on paying.
Civil disobedience time.
“Unions, a perennial Democratic ally, are also fighting the tax because they believe it could affect the middle class.”
Ah, No. Unions oppose it because they have Cadillac Plans.
Maybe they believe that they are the only middle class.
hey! you guys wanted this POS passed- now go F yourselves.
The guys assembling pickup trucks are going to be paying a “ Cadillac” health plan tax
Good luck on getting a reprieve, no doubt our utopian democrat planners have already spent the tens of billions they expect to collect
That is the only way to deal with them. They hepled in shoving this crappy thing on everyone. Now they can deal with it like the rest of us.
Plus, the Donald wants ‘fairness’. Isn’t that Lefty of him!
Brings a tear to me eye it does... s/
I ask because in a rational tax code, ALL employer paid fringe benefits, including contributions to health insurance and retirement plans, would be taxable income. So too would be all benefits paid by government; yes, welfare recipients should have to file every year with the IRS, list every penny of benefits they've received, and pay income taxes if they are over the zero bracket amount.
The third party payment system in health insurance and the creation of special, privileged classes of non-taxable income are the root of many evils. If the Obamacare Cadillac tax is a special, punitive levy, I would oppose it. If it simply sets a cap on the non-taxable amount an employee can receive, and makes the rest taxable, I would say that it is a limited step in the right direction.
Expand the base and lower the rates remains the best approach to tax reform.
They already got one postponement to get 0bama through he last election. Of course, now they want another...on OUR backs. Time for them to join the rest of us, the hell with their exemptions. Watch who panders, Clinton would give it to them, so would Sanders. So freaking sick of these flipping carveouts while I’m one accident illness away from bankruptcy. Let them join in the misery and maybe this atrocity called 0bamacre will finally get fixed.
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