It's rare when unions and businesses unite for any reason, but in the case of Obamacare's so-called "Cadillac Tax," there is broad agreement that the tax will hurt both companies and workers.My first instinct is to let the Union chock on it. But it will harm to many other people, who were against it.
Obamacare includes a whopping 40% tax on insurance plans that offer lavish benefits - low deductibles, vision and dental coverage, etc.Organized labor, which fought hard to pass Obamacare, has been worried about the tax's impact for years. At its 2013 convention, the AFL-CIO labor federation passed a resolution criticizing the law and demanding major changes.I don't see the logic in the tax and I would hope Congress would repeal it. Does the administration believe that some people shouldn't have excellent health insurance coverage if others are stuck with the "Bronze" plan under Obamacare? Or is it just another scheme to ration health care?
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The group sent a letter to all House lawmakers Monday urging them to repeal the tax. The letter disputes the argument that the tax will bring in $87 billion and argues that many employers will drop coverage or restructure it to avoid paying the tax. Those who don't drop coverage will require employees to contribute more to offset the higher cost.
Unions are reaping what they sowed.
Refer to the MIT Professor Jonathan Gruber, the Cadillac Tax was part of the plan to force EVERYONE into Obamacare, eventually. It's not a bug, but a feature.
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