Obama did the right thing talking with the Union Leadership today

[berni_mccoy]

If Democrats try to pass a bill with the Excise tax, they will lose all support from Unions. Even thought the Excise Tax has been hyped into a nefarious implement of Union Busting (which it isn't), the political reality is that Union members believe it is. And there are other ways to solve the problem.

It appears that Obama's meeting with the Union Leaders was productive in both directions.

http://news.yahoo.com/s/ap/20100112/ap_on_bi_ge/us_health_care_overhaul

Negotiators are considering extending the Medicare payroll tax, which now applies only to income from wages, to cover some of the investment earnings of couples making more than $250,000 a year, and individuals earning above $200,000. That could make up lost revenue from dropping the high-wage income tax and scaling back a proposed tax on high-value insurance plans, which is strongly opposed by organized labor and House Democrats.

On another high-profile issue, the negotiators are discussing a hybrid of a proposed national insurance exchange contained in the House bill and the state-by-state approach favored by the Senate. House Democrats are pressing for a national system to apply pressure to the insurance industry after their proposal for a new government-run insurance option was ruled out due to opposition from Senate moderates.

This is good and shows both sides are willing to make something work here. And there is this good point that highlights there are plenty of non-union workers out there that should be considered as much as any union member:

Obama met with union leaders Monday, and one union official familiar with the discussions said labor leaders and White House staff also explored the possibility of exempting or delaying health plans covered by collective bargaining agreements from being subject to the tax. They also discussed possible carve-outs for state and government employees, many of whom are unionized.

But some union officials are concerned about any compromise that would appear to give unions special treatment. They want a fix that protects both union and nonunion middle-class workers from paying higher taxes on health plans.

While unions are important, Obama remembers that not every middle class worker is a union worker.

[Cha]

1. Thank you...edge on the

seat stuff! Here's hoping the Final Health Bill when all is negotiated and done..will help everyone who really needs it at costs they can afford.

[grantcart]

2. I don't believe that the excise tax will be a good revenue generator

I do agree that it will keep down price increases, plans will be designed to keep under the trigger reducing coverage to make sure that no taxes are added.

It will keep prices down but it won't raise any real money.

Besides why not go to a straight income tax increase on the top 5%.

We have to start taxing the super rich if we are going to raise any real revenues.

[RoyGBiv]

3. It wasn't supposed to be, was it?

Some wonk I read the other day who was analyzing the differences in the bills was arguing that the only way the excise tax would be considered a success would be if it didn't collect a dime, i.e. plans that would be subject to it would have to disappear for it to be successful.

Or, the way he summarized it was, the House plan is about changing revenue sources. The Senate plan was about changing behavior. It reflected a fundamental difference in the way each body approached the issue, with the Senate coming off as clearly the more conservative of the two.

I agree that the excise tax probably isn't the way to go with this. I was just wondering if that was your understanding.

[NJmaverick]

4. President Obama is always going to talk and try and work things out

it one of the things that makes him great.