Stop the presses. President Obama has finally found something he is willing to fight for on health care reform. No, not the public option, but he didn't campaign on that anyway, or so he says. It's the 40% excise tax on benefits. Politico reported yesterday that the president delivered a "forceful" message to House Democrats that he "wants a final bill that includes a tax on Cadillac insurance plans." AP this morning says:
Well, there goes 2 more campaign promises-not to tax health care benefits and not to raise taxes on the middle class. Two birds with one stone, nice job Mr. President. This case of presidential amnesia apparently also takes in this statement from March:
But then again he said that in a video message to the AFL-CIO, and if there's one consistency with this president, as with all politicians, it's tailoring the message to whatever group he happens to be in front of. Gotta love that "change."
The reason the president gives for supporting the excise tax is because of the revenue it produces, allegedly $150 billion over 10 years. One slight problem, that's a completely bogus, made up, pulled out of his ass number. According to the Joint Committee on Taxation:
Anybody who has spent more than 15 minutes in the current corporate environment knows that's NEVER gonna happen. Whatever companies save by giving their employees cheaper health plans, cheaper for the company not the employee that is, in order to stay under the limit will go straight into the corporate coffers. The employees won't see one thin dime of those savings.
The president talks about the excise tax "bending the cost curve." I know exactly where I'd like to bend that curve right about now.
"President Barack Obama signaled to House Democratic leaders Wednesday that they'll have to drop their opposition to taxing high-end health insurance plans to pay for health coverage for millions of uninsured Americans."
Well, there goes 2 more campaign promises-not to tax health care benefits and not to raise taxes on the middle class. Two birds with one stone, nice job Mr. President. This case of presidential amnesia apparently also takes in this statement from March:
"To me, and to my administration, labor unions are a big part of the solution. We need to level the playing field for workers and the unions that represent their interests - because we cannot have a strong middle class without a strong labor movement."
But then again he said that in a video message to the AFL-CIO, and if there's one consistency with this president, as with all politicians, it's tailoring the message to whatever group he happens to be in front of. Gotta love that "change."
The reason the president gives for supporting the excise tax is because of the revenue it produces, allegedly $150 billion over 10 years. One slight problem, that's a completely bogus, made up, pulled out of his ass number. According to the Joint Committee on Taxation:
"...most of the affected health insurance plans would not actually pay the excise tax. Employers would modify their health plans to stay within the thresholds for the excise tax, and they would convert the resulting savings into higher wages or other fringe benefits for their employees. JCT estimates that over 80 percent of the revenue raised by the proposal would stem from income and payroll taxes on these higher wages."
Anybody who has spent more than 15 minutes in the current corporate environment knows that's NEVER gonna happen. Whatever companies save by giving their employees cheaper health plans, cheaper for the company not the employee that is, in order to stay under the limit will go straight into the corporate coffers. The employees won't see one thin dime of those savings.
The president talks about the excise tax "bending the cost curve." I know exactly where I'd like to bend that curve right about now.
OK, that's 3. That meets carguy's qualifications for a movement. We're off and running.
Desperado and Carguy, I am late to the game today, but I will go for a Blue Collar Party - it has GOT to be better than what we have now!
I am so...well, you know. Why repeat how I feel?
That name works for me.
Is there a DVD on how to start a new national political party????
I think I can get a lot of carguys to join. Not all of them. You know what I mean. NOT the truck guys, for sure.
My buddy plays the guitar and I can do the whole song, all 27 minutes. We used to perform it at frat parties in college.
I'm with you. How about we start the Blue Collar Party?
Nelson's not the only potential dealmaker/breaker at this point.
Actually, for those of us who have been lucky enough to keep our jobs, our wages have, on average, been rising: http://www.bls.gov/news.release/empsit.t16.htm
I could live with that. Run it by Ben Nelson and see what he thinks.
I like that song.
Hm. I'd split the difference by taxing the "Cadillac" plans at the presently proposed rates (which really do represent quite generous plans, by present standards) BUT index them at the rate of health care inflation, not general inflation. I'd also keep the House's plan to tax the wealthiest Americans. That way, subsidies for the middle class could be increased and the Medicaid eligibility cutoff could be pegged at the level in the House bill.
I am 100% behind you now. Reminds me of Arlo Guthrie's lyrics in "Alice's Restaurant". (Do you know what I'm talking about?) If we can get one more person we can be a "movement".
One more suggestion. Get the hell out if Iraq and Afghanistan and spend that money on health care.
I don’t like the idea of taxing benefits at all, but if they insist on going that way, double the current proposed amounts, to $16,000 and $46,000. Index it for inflation in health care costs so it doesn’t take in more and more plans every year.
A little honesty would be nice for a change. Base the revenue projections on REAL numbers, not on income taxes that they’ll never get.
Raise income taxes on the people who have been making out like bandits for the last 20 years.
OK.....it took me a while, but I understand this now and I see where you're coming from. The "Tater" is smart, just smart while, at the same time, being deliberate.
I now agree that the "Cadillac" plans will simply be eliminated. Do you think there a solution to this dilemma aside from just dropping this excise tax entirely. I DO think executives with plans WAY above the norm should pay taxes on these benefits. Same as when the employee get a Chevy Malibu to drive, the CEO a new Maserati. My boss says, "French benefits like that should me taxed to the recipient." I agree, except the "French" part.
Level the playing field, Huh ? I guess they're using the bodies to fill in the ruts. Second term, my ass.
I'm losing track of the groups of people that Obama has thrown under the bus.... to get this "The Status Quo --- with Mandates" health care bill passed.
This excise tax .... is opposed by union workers.
Which is why is wasn't in the House version... but instead was included by the millionaires in the Senate.
Big Pharma, and the Health Insurance Companies, and the administration gets what they want...working people.. union people.. not so much.
Under the bus... with the rest of the Democratic Party Base.
I've never understood the Cadillac Plan excise tax, not even when John McCain was supporting it in the 2008 campaign.
And in this current economic environment, is increased tax revenue from higher wages actually likely? Haven't real wages been declining? And, in case we forget, thank you George W.Bush for that little gift to the American people.