Tax on "Cadillac" Plans Likely to Survive

The Hill reports that labor leaders have conceded that the excise tax on "Cadillac", or high-cost, health plans will survive negotiations between the House and Senate on their respective health reform bills. Andy Stern, president of the Service Employees International Union (SEIU), along with other union and labor leaders have lambasted the proposed 40% tax on the cost of insurance policies worth greater than $8,400 for individuals and $23, 000 for families.

Vocal opposition to the tax has emerged as of late and some see the proposed tax as a broken promise to the American people. In his presidential campaign, Mr. Obama asserted that he would not raise taxes on anyone making less than $250,000. Others worry that including the tax in the final bill would give Republicans political ammunition, something that Democrats want to avoid in this mid-term election year.

For more on this, visit The Hill.

Additional information on this issue can be found by clicking here (Roll Call) and here (New York Times).