Backroom Deals Exempt Union Health Care Plans from ‘Cadillac Tax’
WASHINGTON, D.C. — After a Tuesday meeting between White House officials and union leaders, the two sides reached a health care deal that would exempt union health care plans from new taxes. While plans with similar benefits are likely subject to tax rates as high as 40%, health care plans negotiated under union managed collective bargaining agreements will remain tax-free.
“The decision to exclusively tax non-union health care plans represents the latest and most egregious sop to Democrat’s most loyal ally – big labor,” said Brian Johnson, Executive Director of The Alliance for Worker Freedom. Johnson added, “Unions got the legislation they were lobbying for while getting the rest of the country to pay for it; and Burger and Stern aren’t even registered lobbyists!”
Labor unions who have been longtime supporters of Democrat health care proposals disagreed with the party over how to finance the expensive legislation. Since health care negotiations began, unions were vocal in their opposition to proposals that would tax their benefits.
“President Obama who once condemned lobbyists and special interests has allowed the same people he denounced to write his health care legislation. Given the cozy relationship unions have with this President, the fact that Andy Stern and Anna Burger have over 50 White House visits combined, no one should be surprised by this administration’s decision to tax everyone but unions,” Johnson said.
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